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SGX Nifty Indicates Negative Opening; ITC, Asian Paints, and Coromandel International to Report Today

Posted Date: July 24 2020
Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 11,162, compared with Nifty’s close of 11,215 yesterday.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, -1.3%; S&P 500, -1.2%; Nasdaq, -2.3%; KOSPI, +0.01%; Nikkei, -0.6%; Hang Seng, -1.2%

Yesterday, Nifty opened on a flat note but edged higher as the session progressed. Indian markets resumed their rally after a brief selling on Wednesday. Yesterday being a Thursday, weekly options contracts of Nifty and Bank Nifty had expired, and the session was slightly less volatile compared with the previous expiries. Nifty is currently trading 10.7% and 3.3% above its 50- and 200-DMA, respectively.

On the sectoral front, barring Nifty IT (-0.2%), all the sectoral indices closed higher. Nifty Pharma (+1.4%) and Realty (+0.8%) were the major advancers. FIIs’ net buying was Rs 1,740.5 crore, while DIIs’ net selling was Rs 932 crore.

The Indian market remains in a Confirmed Uptrend. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, and it is an environment where outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of leading stocks and keep an open mind as to how it unfolds. We will wait for solid entry points before buying.

Key News

ItcAsian Paints, and Coromandel International will report their Q1 FY21 results today.

Mphasis (Nse) released Q1 FY21 results. PAT declined 22.1% y/y to Rs 275.1 crore, while revenue was down 2.5% y/y to Rs 2,288 crore. Margin fell 60bps to 15.7%.

Abb India released Q1 FY21 results. PAT declined 76.6% y/y to Rs 16.3 crore, while revenue was down  42.9% y/y to Rs 985.8 crore. Margin fell 480bps to 2.4%.

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, 54%; Rally Attempt, 0%; Uptrend Under Pressure, 42%; Downtrend, 4%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 46%; Rally Attempt, 0%; Uptrend Under Pressure, 54%; Downtrend, 0%.

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