At 8:00am IST, the SGX Nifty Futures was trading at 11,293, compared with Nifty’s close of 11,250 Monday.
Market status: Uptrend Under Pressure
Distribution Day Count: Six
Global stock markets: Dow 30, -1.8%; S&P, -1.2%; Nasdaq, -0.1%; Hang Seng, -0.7%; KOSPI, -1.5%
Nifty, after a flat opening yesterday, traded sideways in the first half of the trading session. In the second half, global sentiments weighed on the index, leading to a sharp selloff in the Indian market. Nifty formed lower low in the hourly chart and closed near the day's low, posting significant loss.
In the process, Nifty breached its 50-DMA. However, as volumes were lower than the previous session, Nifty escaped from adding a distribution day. In addition, most of the leaders are still trading above their 50-DMA. Thus, we will closely watch one or two days more before downgrading the market to a Downtrend. The broader market also felt the heat of bearish sentiment. Nifty Midcap was down 4.1%, while Smallcap closed 4.2% lower.
As the market is in an Uptrend Under Pressure, investors should proceed with caution. Unless a stock shows exceptional fundamental and technical strength, no new addition to the portfolio is advised. Investors should consider booking profits in stocks that have performed well and advanced 20–25% from their ideal buy points.
Hsil announced buyback of shares up to Rs 70 crore at a share price of Rs 105, which is around 45% premium to the current market price.
Shree Renuka Sugars approved issue of 21.16 crore equity shares at a price of Rs 8.74 per share aggregating to Rs 185 crore on preferential basis to Promoter, Wilmar Sugar Holdings Pte Ltd.
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, 20%; Rally Attempt, 0%; Uptrend Under Pressure, 68%; Downtrend, 12%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 12%; Rally Attempt, 4%; Uptrend Under Pressure, 80%; Downtrend, 4%.