SGX Nifty Indicates a Positive Opening; FIIs Continue Buying Spree

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 15,018, compared with Nifty’s close of 14,981 on Friday.

Market status: Confirmed Uptrend

Distribution days: Six

Global stock markets: Dow30, +0.01%; S&P 500, -0.1%; Nasdaq, +0.1%; Nikkei, +1%; Kospi, +0.1%; Hang Seng, +0.3%

Last week, Nifty made a new all-time high of 15,431 on Tuesday. However, it succumbed to profit booking near highs and was down in the next three consecutive sessions of the week. Thursday was a distribution day and Friday’s session escaped a distribution day as the fall took place on lower volume. Nifty PSU Bank (+10.7%) was the top gainer last week, followed by Energy (+5.2%) and Metal (+1.9%). On the flip side, Nifty Pharma (-3.4%) was the major decliner, followed by Auto (-3.4%). In February MTD, FIIs’ net buying is more than Rs 23,000 crore, while DIIs’ net selling is Rs 16,000 crore.

Nifty made a new high on February 3 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 1.7% 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

Narayana Hrudayalaya will invest $100M for capacity expansion in the Cayman Islands.

Bitcoin market cap crosses the $1T mark.

India’s forex reserves in the week ended February 12 was down $249M to $582.7B.

Jubilant Foodworks’s wholly-owned subsidiary Jubilant Foodworks Netherlands B.V. has entered into a purchase agreement to fully acquire Fides Food Systems Cooperatief U.A.

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, 50%; Rally Attempt, 4%; Uptrend Under Pressure, 46%; 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%.