At 8:00am IST, the SGX Nifty Futures was trading at 11,998, compared with Nifty’s Friday close of 11,914.
Market status: Rally Attempt
Global stock markets: Dow 30, +0.6%; S&P, +0.9%; Nasdaq, +1.5%; Nikkei, -0.4%; Hang Seng, +1.3%
On Friday, markets reacted positively to the outcome of the RBI’s MPC meeting, especially financial related stocks. In Nifty 50, four out of the top five gainers were banking stocks, led by Icici Bank (+3.6%) and Axis Bank (+3.6%). Nifty advanced higher in all five trading sessions and gained about 500 points last week.
Looking forward, we would prefer to see a follow-through day before shifting the market to a Confirmed Uptrend. (A follow-through day is a solid up session, generally a 1.5% or higher gain, with volume being higher than the previous day). Should this occur, the focus will be on ideas that show the best relative strength with good accumulation. Stocks that recover the quickest tend to lead the next run. On the flip side, if Nifty breaches its recent low of 10,790, the market will be moved back to a Downtrend.
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, 15%; Rally Attempt, 10%; Uptrend Under Pressure, 50%; Downtrend, 25%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 20%; Rally Attempt, 5%; Uptrend Under Pressure, 65%; Downtrend, 10%.