SGX Nifty Indicates Positive Opening; TCS to Declare Results Today

At 8:15 am IST, SGX Nifty Futures was trading at 17,860, compared with Nifty’s close of 17,790 yesterday.

Market Pulse: Confirmed Uptrend

Distribution Day Count:

Nifty50: Three Nifty Midcap100: Three Nifty Smallcap100: Two

Global stock markets: Dow 30, +1%; Nasdaq, +1.1%; S&P 500, +0.8%; Nikkei, +2.1%; Kospi, +0.3%; Hang Seng, +0.03%.

Yesterday, Nifty gapped 50 points higher and made a high of 17,857. It traded range bound around 17,800–17,850 during the day. However, Nifty breached 17,800 in the last hour and closed just below it. Action was strong in the broader market. Midcap and Smallcap indices outperformed benchmark indices.

On the sectoral front, barring Nifty Oil & Gas (-0.2%), all other indices closed higher. Nifty Realty closed 6% higher and Nifty Auto was up 4%. Nifty IT, Pharma, Metal, and Bank closed 0.5–2.0% higher.

Nifty is placed about 1% above its 21-DMA. It is important to hold that level. On the flip side, the distribution day count rose to three last week. If the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.