At 8:00am IST, the SGX Nifty Futures was trading at 11,181, compared with Nifty’s close of 11,132 yesterday.
Market status: Confirmed Uptrend
Global stock markets: Dow 30, +0.4%; S&P 500, +0.7%; Nasdaq, +1.7%; KOSPI, +1.9%; Nikkei, +0.3%; Hang Seng, +1%
Nifty continued to trade in a tight range of 11,056–11,240. Yesterday, Nifty opened higher but quickly gave up gains and closed 50bps lower. Volume was lower across the board, so distribution day was avoided. A breakdown in large-cap banking stocks did the most damage to the indices. HDFC Bank and ICICI Bank closed with a cut of 3.5% and 6.0%, respectively. On the flip side, leading IT stocks (Tata Consultancy Svs., Infosys, Hcl Technologies (Nse), and Tech Mahindra) closed 2–3% higher, providing crucial support to the indices.
On the sectoral front, barring Nifty IT (+2%) and Metal (+0.3%), all the sectoral indices closed in the red. Nifty Bank (-3.6%) declined sharply whereas Nifty Financial Services, Pharma, and Realty closed 1.5–2.5% lower. FIIs’ and DIIs’ net selling was Rs 453 crore and Rs 978 crore, respectively.
The Indian market remains in a Confirmed Uptrend. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, and it is an environment where outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of leading stocks and keep an open mind as to how it unfolds. We will wait for solid entry points before buying.
Pfizer (Nse) released Q1 FY21 results. PAT advanced 10.3% y/y to Rs 124.5 crore, while revenue was down 5.4% y/y to Rs 514.9 crore. Margin advanced 560bps to 36.1%.
Bharti Infratel released Q1 FY21 results. PAT advanced 8.3% q/q to Rs 703.6 crore, while revenue was down 3.3% q/q to Rs 3,504.7 crore. Margin advanced 410bps to 51.6%.
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, 0%; Uptrend Under Pressure, 42%; Downtrend, 4%.
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%.