At 8:00am IST, the SGX Nifty Futures was trading at 14,778, compared with Nifty’s close of 14,648 yesterday.
Market status: Uptrend Under Pressure
Distribution days: Six
Global stock markets: Dow 30, +1.6%; S&P 500, +1.4%; Nasdaq, +1.6%; Nikkei, +0.6%; Hang Seng, -0.6%; Kospi, +0.3%
Nifty gapped higher yesterday morning and remained strong during the first hour. It crossed 14,700, but pulled back 200 points and failed to make a new high. After the pullback, uptrend resumed and Nifty closed in the top quartile of the day’s range. Volume was also higher. Advance-decline ratio was skewed toward advancers. Out of 2,277 stocks, 1,222 advanced and 691 declined. On the sectoral front, Nifty Bank, Auto, Financial Services, and Realty closed 3.5–4.0% higher. Nifty IT, Pharma, and Metal closed about 2% higher. Nifty FMCG was a laggard in today’s rally.
Last week, market status was changed to an Uptrend Under Pressure as Nifty breached its 21-DMA and the distribution day count was elevated. The status will be back to a Confirmed Uptrend if Nifty retakes 14,754 (high during the recent rally). With the Nifty rebounding sharply from its 50-DMA, we will continue to look for leadership-quality growth names to form entry points. At the same time, we will continue to monitor the market and look for signs of weakness.
Tata Consumer Products announced Q3 FY21 results. Revenue rose 23.1% y/y to Rs 3,069.6 crore and PAT was up 28.8% to Rs 218.2 crore.
Ajanta Pharma reported Q3 FY21 results. Revenue surged 14.9% y/y to Rs 748.7 crore. PAT increased 64.2% to Rs 176.6 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, 38%; Rally Attempt, 0%; Uptrend Under Pressure, 54%; Downtrend, 8%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 16%; Rally Attempt, 0%; Uptrend Under Pressure, 84%; Downtrend, 0%.