U.S. Markets Fell Sharply; SGX Nifty Indicates Negative Opening

At 8:00 am IST, SGX Nifty Futures was trading at 17,671, compared with Nifty’s close of 17,748 yesterday.

Market Pulse: Confirmed Uptrend

Distribution Day Count:

Nifty50: Two Nifty Midcap100: Three Nifty Smallcap100: Two

Global stock markets: Dow 30, -1.6%; Nasdaq, -2.8%; S&P 500, -2.0%; Nikkei, -2.5%; Kospi, -1.9%; Shanghai Composite, -1.0%.

Yesterday, Nifty started the session on a positive note. However, it failed to hold above 17,900 and started declining in the opening hour. The index slipped further, breached its 10-EMA, and made a low of 17,576. However, Nifty staged an upside reversal in the last hour and closed more than 150 points off lows. On the sectoral front, Nifty Oil and Gas (+1.3%) was the top gainer. Nifty Metal (+0.5%) and Pharma (+0.1%) closed higher. On the flip side, Nifty IT (-2.2%) lost the most. Nifty Bank, Auto, and Financial Services were down 0.5–1%. The advance-decline ratio was in favor of decliners. Of 2,042 stocks traded, 779 stocks advanced, 1,180 stocks declined, and the remaining closed flat.

One distribution day expired on Monday, but a new one got added yesterday. Hence, the distribution day count now stands at two. Further, Nifty is now trading above all its key moving averages. We would like the index to continue to trade above its key moving averages. 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

Tata Motors rolls out 100,000th unit of Altroz from Pune Plant. The company had commenced Altroz production in November 2019 and launched it in January 2020.

Pfizer (Nse) submits data to FDA for COVID-19 vaccine for the age group of 5–11.

Tata Consultancy Svs. bags a five-year contract with NORD/LB to simplify and transform the German bank’s application estate across multiple business units.