At 8:00am IST, the SGX Nifty Futures was trading at 11,509, compared with Nifty’s close of 11,470 yesterday.
Market status: Uptrend Under Pressure
Global stock markets: Dow 30, +0.8%; S&P 500, +0.8%; Nasdaq, +1.5%; Nikkei, +0.3%; Hang Seng, -0.5%; KOSPI, +0.1%
Yesterday, Nifty opened more than 70 points higher and traded in a zig-zag manner through the session. It traded in a range of about 190 points but closed near its opening. Volume was lower than Monday’s session. In the broader market, Nifty Midcap and Nifty Smallcap closed 0.8% and 0.4% higher, respectively.
On the sectoral front, it was a mixed reaction, with the majority of indices closed in the green. Nifty Metal (+3.2%) and Pharma (+2.3) advanced the most, whereas Nifty IT (-0.6%) and PSU Bank (-0.2%) were the major decliners.
The market status was recently changed to an Uptrend Under Pressure with an additional distribution day. We will be slightly cautious while initiating fresh long positions. We will change the status to a Downtrend if two or three more distribution days are added or if Nifty breaches its 50-DMA and 200-DMA. On the flip side, the status will be shifted back to a Confirmed Uptrend if Nifty retakes the 11,795 level (high made during the recent rally).
Nmdc reported total August iron ore sales at 1.79M tons versus 1.49M tons for the same period last year.
Oil & Natural Gas reported its Q1 FY21 results yesterday. Revenue from operations declined 39.4% q/q to Rs 13,011.3 crore. It reported a standalone profit of Rs 496 crore, compared with a loss of Rs 3,098.3 crore in the previous quarter.
T V S Motor reported total August sales at 2.87 lakh units as against 2.90 lakh units for the same period last year.
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, 54%; Rally Attempt, 8%; Uptrend Under Pressure, 30%; Downtrend, 8%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 42%; Rally Attempt, 4%; Uptrend Under Pressure, 50%; Downtrend, 4%.