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SGX Nifty Indicates Positive Opening; Qualcomm to Invest Rs 730 Crore in Jio

Posted Date: July 13 2020
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At 8:00 am IST, the SGX Nifty Futures was trading at 10,841, compared with Nifty’s close of 10,768 on Friday.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, +1.4%; S&P 500, +1%; Nasdaq, +0.7%; KOSPI, +1.2%; Nikkei, +1.8%; Hang Seng, +0.5%

Last week, Nifty continued to edge higher and gain more than 1.5%. It is now less than 1% away from its 200-DMA. It closed in the green for the fourth consecutive week. Nifty’s 50- and 100-DMA merged, and its 50-DMA is about to cross its 100-DMA, which is a bullish sign. On Friday, Nifty opened on a negative note and was volatile throughout the day. Barring Nifty Energy {-0.5%} and Media (-0.2%), all the sectoral indices closed higher. Nifty Metal (+3.5%) was the biggest gainer in the week, followed by Pvt Bank (+2.7%). On an MTD basis, both FIIs and DIIs were net sellers. FIIs’ net selling was Rs 2,000 crore, while DIIs’ net selling was Rs 655 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

Avenue Supermarts reported Q1 FY21 results. Revenue declined 33% y/y to Rs 3,883 crore, while margin contracted 740bps y/y to 2.9%. EBITDA was down 81% y/y to Rs 111.8 crore.

Reliance Industries: Qualcomm Inc will invest Rs 730 crore in Jio Platforms and will get a 0.15% stake. This is the 13th major investment in the last 12 weeks. In total, Reliance sold its 25.2% stake in Jio Platforms.

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, 58%; Rally Attempt, 0%; Uptrend Under Pressure, 42%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 35%; Rally Attempt, 0%; Uptrend Under Pressure, 65%; Downtrend, 0%.

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