SGX Nifty Indicates Muted Opening; Gold Imports Dip; PVR to Raise Rs 800 Crore

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 13,732, compared with Nifty’s close of 13,760 on Friday.

Market status: Confirmed Uptrend

Distribution days: Three

Global stock markets: Dow30, -0.4%; S&P 500, -0.4%; Nasdaq, -0.1%; Nikkei, -0.7%; Kospi, -0.5%; Hang Seng, -0.2%

Nifty continued its positive momentum and hit a new high during the last week. It closed higher for the seventh consecutive week, which last happened in February - April 2019. During the week, it closed in the green in all trading sessions. The trading range had slightly narrowed down this week, compared with the previous week. On Friday, it opened in the green and quickly succumbed to profit-booking at the top and lost over 100 points. As the session progressed, it pared all the losses and closed in the green.

On the sectoral front, Nifty Realty (+3.9%) advanced the most. It was followed by Nifty Pharma (+3.2%) and Financials (+2.6%). On the flip side, PSU Bank (-3.4%) declined the most, followed by FMCG (-0.8%) and Auto (-0.2%). Friday, the advance-decline ratio was inclined toward the decliners. Of the 2,233 stocks traded, 708 were advanced, 1,188 declined, and 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. After a strong rally, pullback/consolidation (if any) is a constructive sign if Nifty holds its 21-DMA. It is advised to closely review the existing positions and book partial profits in stocks that are extended from their moving averages. On the flip side, tracking distribution days is crucial. Accumulation of distribution days can halt the uptrend.

Key News

Lupin (Nse) received approval from the USFDA for Colesevelam hydrochloride tablets, which helps reduce cholesterol.

Pvr will raise up to Rs 800 crore via equity.

Gold imports during the April-November fell 40% to $12.3B when compared with the corresponding period of the 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, 92%; Rally Attempt, 0%; Uptrend Under Pressure, 8%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 74%; Rally Attempt, 0%; Uptrend Under Pressure, 26%; Downtrend, 0%.