SGX Nifty Indicates Flat Opening;Force Motors to Raise up to Rs 500 Crore via NCDs

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 14,483, compared with Nifty’s close of 14,485 yesterday.

Market status: Confirmed Uptrend

Distribution days: Three

Global stock markets: Dow 30, -0.3%; S&P 500, -0.7%; Nasdaq, -1.3%; Nikkei, +0.1%; Hang Seng, +0.4%; Kospi, -0.6%

Yesterday, Nifty started the session on a record high of 14,474 and was volatile throughout. It ended the session on a strong note as it closed near the day's high at almost 14,500. Broader market indices, Nifty Midcap (-0.2%) and Smallcap (-0.04%), closed lower. It was a mixed reaction on the sectoral front. Nifty IT (+3.3%) was the top gainer, followed by Auto (+2.6%). On the flip side, Nifty Media (-1.5%) declined the most, followed by PSU Bank (-1.5%) and Metal (-1.0%). Market breadth was skewed toward decliners. Of 2,249 stocks traded, 768 advanced, 1,176 declined, and the remaining were unchanged.

With leadership broadening and indices above relevant intermediate term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial as rise in distribution days can halt the uptrend.

Key News

Karnataka Bank (Nse) and Tata Elxsi (Nse) will report their Q3 results today.

Gail (India) (Nse) has announced to schedule its board meeting on January 15 to consider the proposal of buyback of shares.

Force Motors received the board’s approval for raising up to Rs 500 crore via NCDs.

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, 84%; Rally Attempt, 4%; Uptrend Under Pressure, 12%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 66%; Rally Attempt, 0%; Uptrend Under Pressure, 34%; Downtrend, 0%.