At 8:00am IST, the SGX Nifty Futures was trading at 15,003, compared with Nifty’s close of 14,910 yesterday.
Market status: Confirmed Uptrend
Distribution days: Four
Global stock markets: Dow30, -0.4%; S&P 500, -0.2%; Nasdaq, +0.1%; Nikkei, +0.1%; Hang Seng, +0.3%; Kospi, -0.3%
Yesterday, Nifty gapped up and reclaimed its 21-DMA in the opening hour. In the second half, it came under selling pressure and breached the 21-DMA, closing about 130 points off highs. Volume was comparatively low. On the sectoral front, there was a mixed action. Nifty Bank, Financial Services, and Metal closed 0.7–1% lower. On the flip side, Nifty FMCG and IT closed more than 1% higher. The broader market outperformed benchmark indices. Nifty Midcap and Smallcap advanced 0.4% and 0.3%, respectively. The advance-decline ratio was in favor of decliners. Of 2,238 stocks traded, 886 advanced, 1,005 declined, and the rest remained unchanged.
Last week, one distribution day was added, taking the total count to four. For the last few days, Nifty was oscillating around its 21-DMA but breached it recently and failed to hold above it yesterday. However, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions.
Looking ahead, we may downgrade the status to an Uptrend Under Pressure if Nifty slips further below its 21-DMA and/or the distribution day count increases to five. Further, we may downgrade the status to a Downtrend if Nifty breaches its 50-DMA, distribution day count remains elevated, and leading stocks break below key support levels. On the flip side, the confidence on uptrend will enhance if Nifty reclaims the 21-DMA and makes a move toward a new high or stages an additional follow-through day.
Shriram City Union Fin. approved the issue of NCDs worth Rs 500 crore.
RBI imposed a penalty of Rs 2 crore on State Bank Of India for contravention of norms, which includes specific directions on remuneration to its employees in the form of commission.
Godrej Properties raised Rs 3,750 crore by issuing QIP to institutional investors.
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, 34%; Rally Attempt, 8%; Uptrend Under Pressure, 58%; Downtrend, 0%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 58%; Rally Attempt, 4%; Uptrend Under Pressure, 38%; Downtrend, 0%.