Market Pulse: Confirmed Uptrend
Nifty50: Two Nifty Midcap100: Two Nifty Smallcap100: Two
Global stock markets: Dow 30, +1%; Nasdaq, +1%; S&P 500, +1%; Nikkei, -0.7%; Kospi, -0.6%; Shanghai Composite, +0.6%.
Nifty traded in a narrow range of fewer than 90 points yesterday after three days of intraday movements that exceeded 200 points. It continued to oscillate between gains and losses. Of Nifty50 stocks, 54% closed in the green, led by Coal India (Nse) (+3.6%) and Tech Mahindra (+3.6%). On the sectoral front, the reaction was mixed. Nifty Media (+13.6%) advanced the most as its heavyweight stock Zee Entertainment Ents. advanced more than 30%.
The distribution day count currently stands at Two. Further, Nifty is now trading near its all-time high, above all its key moving averages. We would like the index to continue this trend. After such a sudden rally, one must also be prepared for some mild profit booking. In the process, 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.
Jubilant Ingrevia’s subsidiary Jubilant Life Sciences International Pte. Limited, Singapore divested its entire 10% stake held in Safe Foods Corporation for $18.2M.
Adani Ports and Special Economic Zone completed the acquisition of a 10.4% stake in Gangavaram Port from the Government of Andhra Pradesh.
The U.S. Fed keeps interest rates steady for now but indicated that rate hikes might happen sooner than expected. More members now see the first interest rate hike occurring in 2022 if progress continues as expected. Throwing light on asset tapering, the committee sees the need to moderate the pace of asset purchases if the progress continues as expected.