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SGX Nifty Indicates Positive Opening; GST Collections Improve for June

Posted Date: July 02 2020
Market Preview

At 8:00 am IST, the SGX Nifty Futures was trading at 10,468, compared with Nifty’s close of 10,430 yesterday.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, -0.3%; S&P 500, +0.5%; Nasdaq, +0.9%; KOSPI, +0.7%; Nikkei, +0.4%; Hang Seng, +1.5%; Shanghai Composite, +0.7%.

After a flat opening yesterday, Nifty witnessed significant buying interest and closed the session near day’s high holding solid gains. Volume was slightly higher than the previous session. In the broader market, Nifty Midcap and Smallcap closed with a gain of 0.5% and 0.9%, respectively.

The Indian market remains in a Confirmed Uptrend. It is important that Nifty holds its 100-DMA (9,957). If Nifty adds distribution days and breaches logical support levels, we may downgrade the market status to an Uptrend Under Pressure. It is prudent to only invest in stocks that have strong fundamentals (i.e., good sales, earnings, margins, etc.) and that are breaking out of sound base structures on heavy volume. The beauty of our CAN SLIM method is that we need not "expect," "hope," or "wish for" with respect to market action. We will take what the market gives us and continue to monitor unfolding conditions.

Key News

GST collections for June improved 46% m/m to Rs 90,917 crore. During the June quarter, GST collections came in at Rs 1,85,220 crore. GST tax roll-out has completed three years.

Nmdc, the country’s largest iron-ore miner, produced 2.52MT for June unchanged compared with June 2019.

Ashok Leyland reported 81% y/y dip in its sales for June. Total vehicle sales were 2,394 units, of which 89% were from domestic sales.

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, 58%; Rally Attempt, 0%; Uptrend Under Pressure, 42%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 20%; Rally Attempt, 0%; Uptrend Under Pressure, 80%; Downtrend, 0%.

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