SGX Nifty Indicates a Positive Opening; Aurobindo Pharma and Eicher Motors to Announce Results Today

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 15,160, compared with Nifty’s close of 15,109 yesterday.

Market status: Confirmed Uptrend

Distribution days: Six

Global stock markets: Dow 30, -0.03%; S&P 500, -0.1%; Nasdaq, +0.1%; Nikkei, +0.04%; Hang Seng, +1.5%; Kospi, 0.02%

Nifty opened higher and gained strength to touch the day's high of 15,256. However, the index witnessed profit booking in the last hour and declined about 150 points off highs, and closed flat for the day. Volume was higher compared with the previous session. Both Midcap and Smallcap indices were down 0.1% and 1.5%, respectively.

Most sectors closed in the red. Nifty Auto and Nifty Media were the major decliners which lost 1.4% and 1.9%, respectively. Similarly, Nifty Pharma was down 1.2% and Nifty Realty declined 0.7%.  Advance-decline ratio was skewed toward decliners. Of 2,231 stocks, 792 advanced and 1,111 declined.

Last Wednesday, Nifty made a new high and moved above the previous rally high of 14,754. Hence, we changed the market status to a Confirmed Uptrend. However, the distribution day count remains elevated at six. Nifty is more than 5.1% above its 21-DMA. If the 21-DMA is breached, we may downgrade the status to an Uptrend Under Pressure. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions.

Key News

Berger Paints India reported Q3 FY21 results. Revenue increased 24.9% y/y to Rs 2,118 crore. PAT was up 50.5% to Rs 275 crore.

Mahanagar Gas reported Q3 FY21 results. Revenue decreased 10.5% y/y to Rs 666 crore. PAT increased 16.7% to Rs 217 crore.

Aurobindo Pharma, Indraprastha Gas, Eicher Motors, Titan Company, and Bata India will report their Q3 earnings today.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 42%; Rally Attempt, 8%; Uptrend Under Pressure, 50%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 46%; Rally Attempt, 0%; Uptrend Under Pressure, 54%; Downtrend, 0%.