MarketsmithIndia Articles

SGX Nifty Indicates Muted Opening; J&K Bank Board Approves Fund Raise Proposal

Posted Date: September 03 2021 | Reading Time: 2 minutes
At 8:00 am IST, SGX Nifty Futures were trading at 17,280, compared with Nifty’s close of 17,234 yesterday.

Market Pulse: Confirmed Uptrend Distribution Day Count: Nifty50: One Nifty Midcap100: Four Nifty Smallcap100: Five

Global stock markets: Dow 30, +0.4%; Nasdaq, +0.1%; S&P 500, +0.3%; Nikkei, +0.6%; Kospi, +0.6%; Shanghai Composite, +0.1%.

Nifty, after a flat opening yesterday, made a unidirectional upward movement throughout the session and hit fresh high. The index closed near the day’s high holding solid gains. Volume was lower than in the previous session, which is a sign of concern. In the broader market, Nifty Midcap and Smallcap advanced 1% each, performing in line with the major indices.

On the sectoral front, barring Nifty Auto (-0.2%) and Nifty PSU Bank (-0.5%), all other sectors closed in the green. Nifty IT (+1.7%) emerged the top gainer for the day, followed by Nifty FMCG (+1.6%) and Nifty Realty (+1.3%). Similarly, Nifty Metal, Nifty Pharma, and Nifty Bank advanced in the range of 0.7–1.0%.

The distribution day count now stands at one as one day expired at yesterday’s close. Further, Nifty is now trading near its all-time high and is placed above all its key moving averages. We would like the index to continue this trend. After such a sudden rally, one must also be prepared for some mild profit booking. In the process, if the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.

Key News

Jammu & Kashmir Bank approved raising of equity share capital of up to Rs 1,000 crore in one or more tranches and Rs 1,000 crore through issuance of non-convertible debentures (NCBs) on a private placement basis.

Irb Infr.Developers(Nse) emerged as a preferred bidder for six laning of Chittoor-Thachur hybrid annuity project.

What do you think? Please email us any questions or comments.

Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.For more information, see our Legal disclosures here.

Related Article