SGX Nifty Indicates Positive Opening; Kotak Mahindra Bank, Tech Mahindra, and Escorts to Report Today

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 11,209, compared with Nifty’s Friday close of 11,194.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, -0.7%; S&P 500, -0.6%; Nasdaq, -0.9%; KOSPI, +1.1%; Nikkei, -0.3%; Hang Seng, +0.5%

On Friday, Nifty opened on a negative note and trended lower to make an intraday low of 11,090. However, Reliance Industries (+4.3%) and IT stocks helped the index to pare most of its losses. Volume was higher than that of Thursday's session. Nifty is currently trading 10.0% and 3.1% above its 50- and 200-DMA, respectively.

On the sectoral front, barring Nifty IT (+1.4%), all the sectoral indices closed lower. Nifty Metal (-2.1%) and Nifty PSU Bank (-1.9%) were the major decliners. FIIs’ net buying was Rs 410 crore, while DIIs’ net selling was Rs 1,003 crore.

The Indian market remains in a Confirmed Uptrend. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, and it is an environment where outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of leading stocks and keep an open mind as to how it unfolds. We will wait for solid entry points before buying.

Key News

Kotak Mahindra Bank(Nse), Tech Mahindra, and Escorts will report their Q1 FY21 results today.

Icici Bank released Q1 FY21 results. PAT advanced 36.2% y/y to Rs 2,599.1 crore, while NII was up 19.9% y/y to Rs 9,279.7 crore. GNPA fell 250bps to 40,386.2 crore.

Aarti Drugs released Q1 FY21 results. PAT stood at  Rs 85 crore as against Rs 22 crore for the same period last year, while revenue was up 34.6% y/y to Rs 545 crore.

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, 54%; Rally Attempt, 0%; Uptrend Under Pressure, 42%; Downtrend, 4%.

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, 54%; Downtrend, 0%.

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