SGX Nifty Indicates Muted Opening; Alkyl Amines and Berger Paints to Report Today

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 11,329, compared with Nifty’s close of 11,300 yesterday.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, -0.3%; S&P 500, -0.2%; Nasdaq, +0.3%; KOSPI, -1.4%; Nikkei, -0.1%; Hang Seng, +0.1%

Yesterday, after a positive opening, Nifty traded toward the day's low of 11,270 due to selling pressure. However, the index staged a reversal and closed flat above 11,300. Volume was slightly lower compared with Wednesday’s session. Broader markets outperformed and closed with solid gains. Nifty Midcap was up 1.6%, while Smallcap closed 0.8% higher.

On the sectoral front, mixed results were observed. Nifty Media led the rally with a gain of 1.4% followed by Nifty Auto and Metal, which were up 1.2% and 1.1%, respectively. On the flip side, Nifty Pharma continued to witness profit booking and declined 1% whereas Nifty PSU Bank was down 1%. Market breadth continues to remain skewed toward advancers. Of 2,184 stocks traded, 1,092 advanced, 745 declined, and the remaining traded flat.

The Indian market remains in a Confirmed Uptrend. We would like to see fresh names flexing their muscles for a sustainable rally. Finding favorable entries into powerful breakouts may be the best use for new money in the current market. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, wherein outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of the market and keep an open mind as to how it unfolds.

Key News

Alkyl Amines Chemicals, Berger Paints India, Glenmark Pharms. (Nse), Indian Bank, and Nesco will report their Q1 FY21 results today.

Hero Motocorp: released Q1 FY21 results yesterday after market close. Standalone revenue from operations declined 63% y/y to Rs 2,971 crore. PAT dipped 95% to Rs 61 crore.

Tata Steel: released Q1 FY21 results yesterday after market close. Revenue from operations declined 32% y/y to Rs 24,288 crore. It reported a loss of Rs 4,648 crore compared with a profit of Rs 714 crore in the corresponding quarter last year.

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, 12%; Uptrend Under Pressure, 38%; 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, 50%; Downtrend, 4%.

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