SGX Nifty Indicates Positive Opening; State Bank of India, Tata Motors, and Indian Oil Corporation to Report Today

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 11,138, compared with Nifty’s close of 11,102 yesterday.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, -0.9%; S&P 500, -0.4%; Nasdaq, +0.4%; KOSPI, -0.2%; Nikkei, -2%; Hang Seng, +0.2%

Yesterday, Nifty gapped up 50 points and continued its positive momentum in the first hour of trading. However, the index staged a downside reversal and dropped more than 200 points from its intraday high. It added a distribution day as volume was higher compared with Wednesday’s session. Yesterday was the second consecutive day when Nifty opened higher and slipped in the red, closing near the day’s low. The selling was broad based. Nifty Midcap and Smallcap also closed with a loss of 1%.

On the sectoral front, selling was concentrated among the Banks and Financial stocks. On the flip side, Nifty Pharma (+3%) continues to outperform and support the indices. Nifty IT closed 0.7% higher. FIIs’ net buying was Rs 207.3 crore, while DIIs’ net selling was Rs 387.3 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

State Bank Of India, Tata Motors, and Indian Oil will report their Q1 FY21 results today.

Reliance Industries released Q1 FY21 results. The company’s revenue was down 35.2% q/q to Rs 88,253 crore. Adjusted net profit was up 30.1% q/q to Rs 13,248 crore. Margin advanced 310bps to 19.1%.

Torrent Pharmaceuticals released Q1 FY21 results. PAT advanced 48.6% y/y to Rs 321 crore, while revenue was up 1.7% y/y to Rs 2,056 crore. Margin was up 539bps to 32.2%.

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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