At 8:00am IST, the SGX Nifty Futures was trading at 12,878, compared with Nifty’s close of 12,938, yesterday.
Market status: Confirmed Uptrend
Distribution Day: Zero
Global stock markets: Dow 30, -1.2%; S&P, -1.2%; Nasdaq, -0.8%; Nikkei, -0.6%; Kospi, -0.4%; Hang Seng, -0.5%
Yesterday, Nifty opened on a flat note and was volatile in the first half of the session. Post noon, buying was seen across the sectors, and Nifty made an all-time high for the third consecutive session. On the sectoral front, the majority of the sectors ended in the green. Nifty PSU Bank (+3.6%) advanced the most, followed by Nifty Auto (+3.1%) and Realty (2.1%). Market breadth remained in favor of advancers. FIIs’ net buying was Rs 3,071 crore, while DIIs’ net selling was Rs 2,789 crore.
We are in a Confirmed Uptrend but need to be prudent and cautious while adding fresh positions, as Nifty is currently trading more than 20% above its 200-DMA, which is rare. We might expect some pullback in the market. However, a small pullback/consolidation 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. We will look for leadership among some good stocks to push the market up. On the flip side, tracking distribution days is crucial. An accumulation of distribution days can halt the uptrend.
Hero Motocorp’s retail sales stood at 14 lakh units in the 32-day festive period. Inventory is at an all-time low for the festive season.
Domestic air traffic jumped 33.67% m/m in October. It was down 57.2% compared with October 2019. According to DGCA, IndiGo's passenger load factor increased to 68.2% in October as against 65.4% in September, and SpiceJet's passenger load factor rose to 74% versus 73% in September. .
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, 72%; Rally Attempt, 8%; Uptrend Under Pressure, 20%; Downtrend, 0%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 88%; Rally Attempt, 0%; Uptrend Under Pressure, 12%; Downtrend, 0%.