SGX Nifty Indicates Negative Opening; ECL Commissions 250 KW Solar Project

At 8:10 am IST, SGX Nifty Futures was trading at 17,446, compared with Nifty’s close of 17,585 on Friday.

Market Pulse: Confirmed Uptrend

Distribution Day Count:

Nifty50: Two Nifty Midcap100: Three Nifty Smallcap100: Two

Global stock markets: Dow 30, -0.5%; Nasdaq, -0.9%; S&P 500, -0.9%; Nikkei, +0.6%; Kospi, +0.3%; Shanghai Composite, +0.2%.

On Friday, Nifty50 gapped up above 17,700 and made a new all-time high of 17,792. However, profit-booking was seen across markets, and the index fell more than 250 points from its all-time high. Except for Nifty Metal (-1.4%) and Realty (-0.9%), all sectoral indices closed higher. Nifty Media (+13.3%) was the top gainer, followed by financial-related indices, which advanced 3–5%. Of the 2,019 stocks traded, 576 advanced, 1,370 declined, and the rest remained unchanged.

The distribution day count currently stands at Two. Further, Nifty is now trading near its all-time high, 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.