SGX Nifty Indicates Positive Opening; Britannia, HDFC Life, and Rallis India to Report Today

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 11,831, compared with Nifty’s Friday close of 11,763.

Market status: Rally Attempt

Global stock markets: Dow 30, +0.4%; S&P, +0.01%; Nasdaq, -0.4%; Nikkei, +1.1%; Hang Seng, +0.8%

On Friday, the index traded in a slightly narrow range. It advanced 90 points and closed near the day’s high. Volume was lower than the previous session. In the broader market, both Nifty Midcap and Smallcap showed outperformance and advanced 1.1% and 1.4%, respectively.

On the sectoral front, barring Nifty IT (-0.1%) and Nifty Media (-0.4%), all the sectoral indices closed in the green. Nifty Metal (+3.4%) advanced the most, followed by Nifty Realty and Nifty Pvt Bank which rose 2.6% and 2.1%, respectively.

Looking forward, we would prefer to see a follow-through day before shifting the market to a Confirmed Uptrend. (A follow-through day is a solid up session, generally a 1.5% or higher gain, with volume being higher than the previous day). Should this occur, the focus will be on ideas that show the best relative strength with good accumulation. Stocks that recover the quickest tend to lead the next run. On the flip side, if Nifty breaches its recent low of 10,790, the market will be moved back to a Downtrend.

Key News

Rallis India, Britannia Inds., Hdfc Life Insurance Co will report their Q2 FY21 results today.

Iifl Securities reported Q2 FY21 results. Profit stood at Rs 50.9 crore as against Rs 24.9 crore in Q2 FY20, while revenue increased  to Rs 201.9 crore from Rs 173.7  crore on a y/y basis.

Tinplate Co.Of India reported Q2 FY21 results. Profit stood at  Rs 16.1 crore as against Rs 12.7 crore in Q2 FY20, while revenue fell to Rs 531.5 crore from Rs 538.4  crore on a y/y basis.

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, 15%; Rally Attempt, 10%; Uptrend Under Pressure, 50%; Downtrend, 25%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 20%; Rally Attempt, 5%; Uptrend Under Pressure, 65%; Downtrend, 10%.