Market status: Downtrend
Global stock markets: Dow30, +0.9%; S&P 500, +0.9%; Nasdaq, +1.2%; Nikkei, +2.1%; Kospi, +0.5%
On Tuesday, Nifty gapped higher in the morning and moved above 14,500. However, increasing selling pressure during the day had Nifty close in negative territory. On the downside, it did not breach Monday’s low, so we counted Tuesday's action as Day 1 of an attempted rally. Broader indices closed in the green, outperforming benchmark indices. On the sectoral front, there was a mixed action. Nifty IT (-1.4%) was the top loser. Nifty Bank, Financial Services, and FMCG closed 0.2–0.6% lower. On the flip side, Nifty Pharma and Auto closed more than 1% higher.
We had changed the market status to a Rally Attempt from a Downtrend on Friday after Nifty managed to hold above the previous correction low (14,248) for three consecutive days. But on Monday, as it breached that low, we are back in a Downtrend. Looking forward, we will shift the market to a Rally Attempt if Nifty establishes a bottom and stays above Monday’s low (14,192) for two more sessions. From there, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend. Should this occur, the focus will be on ideas breaking out of early-stage base patterns and showing best relative strength with good accumulation.
Nestle India declared its Q4 FY21 results. PAT grew 14.6% y/y to Rs 602.2 crore while revenue grew 85.7% y/y to Rs 3,325.8 crore.
Swaraj Engines (Nse) declared its Q4 FY21 results. PAT grew 106.3% y/y to Rs 32.6 crore while revenue grew 74.1% y/y to Rs 304.9 crore.
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%; Uptrend 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, 65%; Rally Attempt, 10%; Uptrend Under Pressure, 25%; Downtrend, 0%.