U.S. Markets Closed Higher On Friday; SGX Nifty Indicates Positive Opening

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 15,051, compared with Nifty’s Friday close of 14,938.

Market status: Confirmed Uptrend

Distribution days: Three

Global stock markets: Dow30, +1.9%; S&P 500, +2%; Nasdaq, +1.6%; Kospi, +0.03%; Hang Seng, -0.9%; Nikkei, +0.3%

Nifty started the last week on a positive note and reclaimed its 21-DMA on Wednesday. But the next two trading sessions saw pressure and the index breached its 21-DMA today. India VIX was up 9.0% and 5.8% in the last two trading sessions of the week. On Friday, the selloff was broad-based as the broader market indices underperformed the major index. Friday’s session qualified as a distribution day as volume was higher compared with the previous session. However, the distribution day count remains at three as one expired today due to aging.

Last week, three distribution days expired due to aging and one was added on Friday, bringing the total count to three. The decrease in the distribution day count is a good sign. However, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. We may downgrade the status to an Uptrend Under Pressure if Nifty falls below its 50-DMA on higher volume and the distribution day count increases.

Key News

Nmdc has fixed prices of iron ore – lump ore (65.5%, 6–40mm) at Rs 5,100 per ton and fines (64%, -10mm) at Rs 4,210 per ton, effective March 6.

Sayaji Hotels’s subsidiary Sayaji Hotels Management (SHML) signed and entered into seven management agreements for the expansion of SHML.

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, 50%; Rally Attempt, 4%; Uptrend Under Pressure, 46%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 46%; Rally Attempt, 0%; Uptrend Under Pressure, 54%; Downtrend, 0%.