At 8:00am IST, the SGX Nifty Futures was trading at 11,494, compared with Nifty’s close of 11,464 on Friday.
Market status: Uptrend Under Pressure
Distribution Day Count: Six
Global stock markets: Dow 30, +0.5%; S&P, +0.05%; Nasdaq, -0.6%; Nikkei, +0.7%; Hang Seng, +0.6%; KOSPI, +1.3%
Nifty moved down toward its 50-DMA at the beginning of the last week. However, Thursday’s action helped Nifty reclaim its 21-DMA. On the weekly chart, it found support at its 10-WMA. On Friday, it moved in a relatively narrow range and volume was lesser than the 50-day average trading volume.
During the week, the sectoral indices reaction was mixed. Nifty Energy (+3.3%) was the biggest advancer due to the rally in Reliance Industries (+11.7%), which has over 36% weightage in the index, followed by Nifty IT (+3.1%), FMCG (+0.5%), and Pharma (+0.3%). On the flipside, Nifty Metal (-2.7%) and Pvt Bank (-2.4%) were the major decliners.
As the market condition is in an Uptrend Under Pressure, investors should proceed ahead 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. Looking forward, we will change the status to a Downtrend, if more distribution days are added or if Nifty breaches its 50-DMA and 200-DMA. On the flip side, the status will be back to a Confirmed Uptrend if Nifty retakes the 11,795 level (high during the recent rally).
Gic Housing Finance reported Q1 FY21 results during the weekend. Revenue from operations was down 1.3% y/y to Rs 306 crore. It reported a loss of Rs 55 crore, compared with a profit of Rs 15 crore in Q1 FY20.
Indiabulls Rlst. (Nse) reported Q1 FY21 results during the weekend. Revenue from operations declined 94% y/y to Rs 47.8 crore. Other income increased 44% to Rs 47.2 crore. It reported a loss of Rs 94.5 crore, compared with a loss of Rs 119.6 crore in Q1 FY20.
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, 34%; Rally Attempt, 8%; Uptrend Under Pressure, 50%; Downtrend, 8%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 17%; Rally Attempt, 0%; Uptrend Under Pressure, 70%; Downtrend, 13%.