At 8:00am IST, the SGX Nifty Futures was trading at 12,714, compared with Nifty’s close of 12,631 yesterday.
Market status: Confirmed Uptrend
Distribution Day: Zero
Global stock markets: Dow 30, +0.9%; S&P, -0.2%; Nasdaq, -1.4%; Nikkei, +1.7%; Kospi, +1.1%; Hang Seng, +0.1%
Yesterday, Nifty opened to strong gains on vaccine news. It kept the momentum intact throughout the day and made higher highs and higher lows in the hourly chart to close above 12,600, holding solid gains. Volume was significantly higher than the previous day. Nifty is currently trading 6.0% and 8.7% above its 21- and 50-DMA, respectively. In the broader market, both Midcap and Smallcap failed to catch up with Nifty50 again. Midcap closed 0.3% higher, while Smallcap was down 0.1%.
On the sectoral front, barring Nifty Pharma (-4.3%) and Nifty IT (-3.9%), all other sectors closed in the green. Financial stocks continued to rally ahead and advanced the most for the day. Nifty Bank, Financial Service, PSU Bank, and Pvt Bank advanced in the range of 3.5–4.1%. Market breadth remained in favor of decliners. FIIs were in a continuous buying spree. FIIs’ net buying was Rs 5,627 crore, while DIIs’ net selling was Rs 2,309 crore.
Currently, we are in a Confirmed Uptrend and are open to adding new positions coming out of proper base formation. We will look for leadership among some good stocks to push the market up. On the flip side, tracking distribution days is crucial. Accumulation of distribution days can halt the uptrend.
Bata India reported Q2 FY21 results. Revenue came in ahead of estimates. It reported a loss of Rs 44 crore compared with a profit of Rs 71 crore in Q2 FY20. Margin contracted 2,060bps to 4.9%.
HIL Limited reported Q2 FY21 results. Its roofing business revenue grew 27% y/y. The flooring business revenue grew 11% y/y. The company repaid Rs 170 crore of debt in H1 FY20.
Tata Power reported Q2 FY21 results. PAT was up 9.6% y/y to Rs 371 crore, while revenue up 8% y/y at Rs 8,289 crore. EBITDA came in at 11.3% at Rs 2,001 crore. EBITDA margin came in at 24.1% compared with 29.4% y/y.
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, 65%; Rally Attempt, 5%; Uptrend Under Pressure, 25%; Downtrend, 5%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 75%; Rally Attempt, 0%; Uptrend Under Pressure, 25%; Downtrend, 0%.