SGX Nifty Indicates Positive Opening; FIIs Net Buying was at Rs 1,650 crore

At 8:30 am IST, SGX Nifty Futures was trading at 17,424, compared with Nifty’s close of 17,380 yesterday.

Market Pulse: Confirmed Uptrend

Distribution Day Count:

Nifty50: One Nifty Midcap100: Three Nifty Smallcap100: Three

Global stock markets: Dow 30, -0.8%; Nasdaq, -0.5%; S&P 500, -0.5%; Nikkei, -0.6%; Kospi, +0.3%; Shanghai Composite, -0.2%.

Yesterday, Nifty started the session on a positive note. After making an all-time high of 17,438 in the morning session, the index witnessed some profit booking. However, the benchmark closed higher with mild gains. There was a mixed action on the sectoral front. However, most sectors ended in the green. Nifty Auto and Nifty IT rose 0.9% each and led the sectoral gains. On the flip side, Nifty Metal and Nifty FMCG remained laggards through the day, losing 0.5% and 0.3%, respectively. FIIs were net buyers at Rs 1,650 crore, and DIIs were net sellers at Rs 310 crore.

The distribution day count currently stands at one. Further, Nifty is now trading near its all-time high and above all its key moving averages. We would like the index to continue this trend. After such a sudden rally, one must also be prepared for some mild profit booking. In the process, 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.

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