SGX Nifty Indicates Positive Opening; Indraprastha Gas to Report Today

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 11,511, compared with Nifty’s close of 11,472 yesterday.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, -0.2%; S&P 500, +0.4%; Nasdaq, +0.8%; Nikkei, -0.2%; Hang Seng, +0.2%; KOSPI, -0.3%

Yesterday, Nifty gapped higher for the third consecutive session. However, the index witnessed selling pressure and dropped 100 points from the day's high. Last hour buying helped Nifty to close briefly in positive territory. Volume was on the higher side compared with the previous session. Broader markets continued to stay bullish. Nifty Midcap and Smallcap closed with gains of 0.3% and 0.5%, respectively.

On the sectoral front, it was a mixed action. Financial stocks continued to lead the gains with Nifty Pvt Bank, Nifty Financial Service, and Nifty Bank closing more than 0.9% higher. On the flip side, Nifty Realty, Nifty Pharma, and Nifty IT extended yesterday’s loss. Nifty Realty (-2.1%) declined the highest, followed by Nifty Metal and Nifty Pharma, which were down 0.6% and 0.7%, respectively. FIIs’ net buying was at Rs 1,481 crore, while DIIs’ net selling was Rs 172 crore. Nifty is trading 2.0% and 5.4% above its rising 21- and 50-DMA, respectively.

The Indian market remains in a Confirmed Uptrend. Despite the rise in the distribution day count on Nifty, we remain positive on the general market as the broader market is gaining strength. We would like to see fresh names flexing their muscles for a sustainable rally. We do think it is important to be selective in this environment and we would remain disciplined with entries, requiring a basing period before establishing fresh positions. We will continue to monitor the behavior of the market and keep an open mind as to how it unfolds.

Key News

Canfin Homes reported Q1 FY21 results. NII was at Rs 522 crore versus Rs 482 crore y/y. PAT increased to Rs 93 crore versus Rs 90 crore q/q and Rs 81 crore y/y. Provisions came in at Rs 44 crore versus Rs 40 crore q/q and Rs 9 crore y/y.

-Key Q1 results today: Indraprastha Gas and Gillette India (Nse)

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, 50%; Rally Attempt, 12%; Uptrend Under Pressure, 38%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 46%; Rally Attempt, 0%; Uptrend Under Pressure, 50%; Downtrend, 4%.

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