SGX Nifty Indicates Negative Opening; RVNL Signs MoU With Tata Steel

At 8:00 am IST, SGX Nifty Futures was trading at 17,603, compared with Nifty’s close of 17,691 yesterday.

Market Pulse: Confirmed Uptrend

Distribution Day Count:

Nifty50: Three Nifty Midcap100: Three Nifty Smallcap100: Two

Global stock markets: Dow 30, -0.9%; Nasdaq, -2.1%; S&P 500, -1.3%; Nikkei, -2.3%; Kospi, -2.1%; Shanghai Composite, +0.9%.

Yesterday, Nifty gapped higher after closing lower for four straight sessions last week. Gains increased as the session progressed and Nifty made a high of 17,750. However, it moved 100 points lower from there but managed to close off lows around 17,700. It should be noted that volume was comparatively lower. All the sectoral indices closed higher. Nifty Metal (+3%) was the top gainer. Nifty Bank, Financial Services, IT, Realty, and Pharma closed 1–2% higher.

Nifty staged a reversal after closing near its 21-DMA (17,530) last week. We would like the trend to continue to begin the next leg of the rally. On the flip side, the distribution day count rose to three last week. 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.