At 8:00am IST, the SGX Nifty Futures was trading at 14,266, compared with Nifty’s close of 14,146 yesterday.
Market status: Confirmed Uptrend
Distribution days: Three
Global stock markets: Dow 30,+1.4%; S&P500,+0.6%; Nasdaq,-0.6%; Nikkei, +1.9%; Hang Seng, -0.1%; Kospi, +2.3%
Yesterday, Nifty, after a gap up opening, traded sideways and pared the opening gains in the first half of the trading session. Later, it witnessed profit booking and traded toward the day’s low of 14,040. However, buying in the last hour helped the index close near 14,150. Volume was higher than the previous session. Also, yesterday’s action qualified as a distribution day as the index fell more than 0.2% on higher volume than the previous session. This takes the distribution day count to three. In the broader market, Midcap closed 0.6% higher, while Smallcap ended flat.
It was a mixed reaction on the sectoral front. Nifty Metal (+1.3%) advanced the most, followed by Nifty Realty, which was up 0.7%. On the flip side, Nifty IT (-1.4%) declined the most, followed by FMCG (-1.1%) and Pharma (-0.4%).
With leadership broadening and indices above relevant intermediate-term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial as a rise in distribution days can halt the uptrend.
Maruti Suzuki India’s production in December scaled up to 1.55 lakh vehicles as against 1.15 lakh vehicles in the same month last year.
Wendt India’s promoters announced to sell up to 4.74% stake in the company via offer for sale on January 7–8, at a floor price of Rs 2,200 per share.
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, 84%; Rally Attempt, 4%; Uptrend Under Pressure, 12%; Downtrend, 0%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 66%; Rally Attempt, 0%; Uptrend Under Pressure, 34%; Downtrend, 0%.