SGX Nifty Indicates Positive Opening; WPI Rises to 1.48% in October

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 12,882, compared with Nifty’s close of 12,780 on Saturday.

Market status: Confirmed Uptrend

Distribution Day: Zero

Global stock markets: Dow 30, +1.6%; S&P, +1.2%; Nasdaq, +0.8%; Nikkei, -0.1%; Kospi, -0.1%; Hang Seng, +0.2%

Last week, Nifty continued its positive momentum as it edged higher and made a new all-time high of 12,828 during the Muhurat trading hour on Saturday evening. Currently, it is trading 9% and 19% above its 50- and 200-DMA, respectively. Last week, barring Nifty IT (-0.3%), all the sectoral indices closed higher during the week. Nifty Metal (+7.2%) advanced the most, followed by financial related indices. MTD, FIIs’ net buying is more than Rs 33,000 crore, while DIIs’ net selling is Rs 20,000 crore.

Currently, we are in a Confirmed Uptrend and are open to adding new positions coming out of proper base formations. We will look for leadership among some good stocks to push the market up. On the flip side, tracking distribution days is crucial. An accumulation of distribution days can halt the uptrend.

Key News

Hdfc Asset Mgmt appointed Navneet Munot as the Managing Director and CEO. He is currently the chief investment officer (CIO) at SBI Mutual Fund.

Oil & Natural Gas reported Q2 FY21 results. Revenue dropped 31% y/y to Rs 16,917 crore. PAT was down 58% y/y to Rs 2,878 crore.

Reliance Industries bought a 96% stake in the online furniture retailer Urban Ladder for Rs 182.12 crore.

-The wholesale price-based inflation (WPI) rose to an eight-month high of 1.48% in October.

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, 72%; Rally Attempt, 8%; Uptrend Under Pressure, 20%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 88%; Rally Attempt, 0%; Uptrend Under Pressure, 12%; Downtrend, 0%.