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SGX Nifty Trading Around 14,000; Au Small Finance Bank Partners with ICICI Prudential to Offer Life Insurance Solutions

Posted Date: December 29 2020
Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 14,002, compared with Nifty’s close of 13,873 yesterday.

Market status: Confirmed Uptrend

Distribution days: Three

Global stock markets: Dow30, +0.7%; S&P 500, +0.9%; Nasdaq, +0.7%; Nikkei, +1.6%; Kospi, -0.1%; Hang Seng, +0.9%

Yesterday, Nifty made a gap up opening of about 75 points and traded in the narrow range throughout the day. It made a fresh all-time high and closed 0.9% higher. Volume was lower than the previous session. Distribution day count was reduced to three as one day expired at the close of yesterday. The broader market outperformed compared with the general market. Midcap closed 1.2% higher, while smallcap advanced 1.7%.

On the sectoral front, barring Nifty Pharma (-0.3%), all the sectors closed in the green. Nifty PSU Bank (+2.8%) and Nifty Metal (+2.8%) advanced the most, followed by Nifty Realty and Bank, which advanced 2.4% and 1.7%, respectively. Market breadth was skewed toward advancers. Of 2,247 stocks traded, 1,357 advanced, 549 declined, and the remaining were unchanged.

Looking ahead, we would like the index to hold its 21-DMA and trade above it. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial. If the distribution day is elevated further, it can halt the uptrend.

Key News

Au Small Finance Bank partnered with {ICICIPRU} to offer need and goal-based life insurance solutions to its customers.

Biocon (Nse) launched Tacrolimus capsules in the U.S.A, thereby expanding its generic formulations portfolio.

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, 80%; Rally Attempt, 4%; Uptrend Under Pressure, 16%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 58%; Rally Attempt, 0%; Uptrend Under Pressure, 42%; Downtrend, 0%.


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