MarketsmithIndia Articles

SGX Nifty Indicates Muted Opening; Maruti Starts Production in New Unit at Gujarat Plant

Posted Date: April 05 2021
At 8:00am IST, the SGX Nifty Futures was trading at 14,910, compared with Nifty’s close of 14,867, Thursday.
 
Market status: Uptrend Under Pressure
 
Distribution days: Six
 
Global stock markets: Dow30, +0.5%; S&P 500, +1.2%; Nasdaq, +1.7%; Nikkei, +0.8%; Kospi, -0.1%
 
Last week, Nifty started with a gap-up opening on Tuesday and retook its 50-DMA. Profit booking was observed on Wednesday. On Thursday, due to weekly expiry, the session was highly volatile but closed the week above 14,850. Daily trading volume stayed below the average volume through the week. All the sectoral indices closed in the green on a weekly basis. Nifty Metal (+8.7%) advanced the most, followed by PSU Bank (+4.7%) and Pharma (+4.2%). Remaining indices gained around 1.2–3.2%.
 
Yesterday, the Maharashtra government imposed new curbs to control the transmission rate of the contagion. Night curfew from 8 pm to 7 am, which comes into effect today. No more than 5 people will be allowed together. Strict lockdown on weekends. As Shops, malls, markets (except groceries and medicines) will remain closed for a month, it can add little pressure on the market.
 
The index is currently hovering around its key moving averages. From here, we would like the index to firmly trade above its key moving averages. On the flip side, we will change the status to a Downtrend, if one more distribution day is added or if Nifty makes a decisive breach of its key moving averages and if market leaders show signs of deterioration in their price actions.
 
Key News
 

Maruti Suzuki India’s subsidiary (Suzuki Motor Gujarat) has completed construction of the plant C, and started production from April 2021. Plant C has an annual production capacity of 2,50,000 units.

Britannia Inds. declared an interim dividend at 6.2% (Rs 62 per equity share) for FY20-21. The record date for determining the eligibility of shareholders for payment of interim dividend has been fixed as April 10.

Adani Enterprises (Nse) along with its subsidiary company, Gare Palma II Collieries Private Limited (GPIICPL) has signed Coal Mining Agreement with Maharashtra State Power Generation Company Limited (MAHAGENCO) for development and operation of Gare Palma Sector II Coal Mine.

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%; Uptend Under Pressure, 52%; Downtrend, 6%.
 
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 52%; Rally Attempt, 4%; Uptend Under Pressure, 40%; Downtrend, 4%.

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