Market status: Uptrend Under Pressure
Distribution days: Seven
Global stock markets: Dow30, +0.6%; S&P 500, +0.5%; Nasdaq, +0.1%; Nikkei, +1.0%; Hang Seng, +0.8%; Kospi, +0.3%
Yesterday being a monthly expiry Nifty was highly volatile. After a flat opening, the index witnessed heavy selling pressure and traded toward the day’s low of 14,264. From there, Nifty posted a solid recovery of about 230 points intraday; however, the rise was sold by market participants, resulting in the index close near 14,320. Further, Nifty added a distribution day as the index fell more than 0.2% on higher volume compared with the previous session. In the broader market, Nifty Midcap declined 2% and Small cap closed 2.2% lower.
On the sectoral front, barring Nifty Metal, the majority of sectors closed in the red. Nifty Media (-3%) was the major decliner. Similarly, Nifty PSU Bank, Nifty Auto, Nifty FMCG, Nifty IT, and Nifty Realty closed lower in the range of 2.0–3.0%. The advance-decline ratio was in favor of decliners. Of 2,248 stocks traded, 367 advanced, 1,544 declined, and the rest remained unchanged.
Currently, the distribution day count stands at seven. However, due to aging, one distribution day is set to expire today. Further, the volume on index during the correction has been lower as against average volumes over the last 50-days. We will change the status to a Downtrend, if one more distribution day is added or if Nifty breaches its 100-DMA and if market leaders continue to show signs of deterioration in their price actions.
DFL raised Rs 500 crore by issuing NCDs. The tenure of bonds is three years with a coupon rate of 8.25%.
Shriram Tran.Fin declared a second interim dividend of Rs 6 per share. It has fixed April 6 as the record date.
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, 30%; Rally Attempt, 12%; Uptrend Under Pressure, 52%; Downtrend, 4%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 52%; Rally Attempt, 4%; Uptrend Under Pressure, 40%; Downtrend, 4%.