U.S. Market Closed Higher; SGX Nifty Indicates Flat Opening

At 8:20 am IST, SGX Nifty Futures was trading at 17,529, compared with Nifty’s close of 17,519 yesterday.

Market Pulse: Confirmed Uptrend

Distribution Day Count:

Nifty50: One Nifty Midcap100: Three Nifty Smallcap100: Three

Global stock markets: Dow 30, +0.7%; Nasdaq, +0.8%; S&P 500, +0.9%; Nikkei, -0.5%; Kospi, -0.6%; Shanghai Composite, -0.2%.

Yesterday, Nifty started the session on a positive note and continued to make higher highs during the day. It made an all-time high of 17,532 during the day and closed near that high. All sectoral indices, barring Nifty Media, closed in the green. Nifty PSU Bank and IT were key gainers, with gains of 2.8% and 1.8%, respectively. Nifty Auto advanced 0.9% during the day following the announcement of reforms such as the PLI scheme for the auto sector. FIIs and DIIs were net buyers at Rs 232 crore and Rs 167 crore, respectively.

The distribution day count currently stands at one. Further, Nifty is now trading near its all-time high and 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.

Key News

Fineotex Chemical has entered into a strategic collaboration with Eurodye-CTC, Belgium, to commercialize specialty chemicals for the Indian market.

Wipro (Nse) secured a multi-year contract from Kuala Lumpur-headquartered Maxis Broadband Sdn Bhd, a leading converged solutions provider.

Click here to read our article on Auto PLI and Telecom Reforms - A Key Announcement