SGX Nifty Indicates Positive Opening; Edelweiss to Raise Up to Rs 200 Crore; Maharashtra Imposes Night Curfew

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 13,423, compared with Nifty’s close of 13,328 yesterday.

Market status: Confirmed Uptrend

Distribution days: Four

Global stock markets: Dow30, +0.1%; S&P 500, -0.4%; Nasdaq, -0.1%; Nikkei, -0.4%; Kospi, -0.7%; Hang Seng, +0.1%

Yesterday, Nifty opened lower and traded in a narrow range for the first half of the trading session. In the second half, the index witnessed significant profit booking and fell sharply to find support at its 21-DMA. The index fell more than 0.2% on volume higher than the previous session, and the session qualified as a distribution day. In the broader market, midcap closed 4.8% lower, while smallcap closed with a loss of 5%.

On the sectoral front, all the sectors closed in the red. Nifty PSU Bank (-6.9%) declined the most, followed by Nifty Media and Metal, which declined 6.2% and 5.5%, respectively. Further, Nifty Auto, Bank, Fin Service, Pharma, PVT Bank, and Realty were down in the range of 3–4%. The IT sector showed resilience and closed 1.7% lower. Market breadth was skewed toward decliners. Of 2,233 stocks traded, 254 stocks advanced, 1,687 declined, and the remaining stocks remained unchanged.

Looking ahead, we would like the index to hold its 21-DMA and rebound from there. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial. If the distribution day is elevated further, it can halt the uptrend.

Key News

Tata Motors to increase prices of commercial vehicles due to the rise in input costs, forex impact. Price hike will happen starting from January.

Edelweiss Financial Services will raise up to Rs 200 crore through issuing Non-Convertible Debentures.

In the view of emergence of new strains of COVID-19 in the U.K., Maharashtra Government has imposed night curfew (11pm to 6am) in all municipal corporations starting from today.

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, 92%; Rally Attempt, 0%; Uptrend Under Pressure, 8%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 74%; Rally Attempt, 0%; Uptrend Under Pressure, 26%; Downtrend, 0%.