At 8:00am IST, the SGX Nifty Futures was trading at 12,801, compared with Nifty’s close of 12,771, yesterday.
Market status: Confirmed Uptrend
Distribution Day: One
Global stock markets: Dow 30, +0.2%; S&P, +0.4%; Nasdaq, +0.9%; Nikkei, -0.7%; Kospi, +0.1%; Hang Seng, +0.4%
Yesterday, after opening around 100 points lower, Nifty saw buying and made an all-time high of 12,963. Due to weekly expiry, there was volatility throughout the session. In the second half, sharp selling was seen across the sectors, and Nifty lost more than 200 points from its intraday high and closed near the day’s low. The session qualified as a distribution day, as the fall was more than 0.2% on volume higher than the previous session. On the sectoral front, barring Nifty FMCG (+0.4%) and Media (+0.3%), all the sectoral indices ended in the red. Nifty PSU Bank (-3.1%) declined the most, followed by other financial related indices. Market breadth was in favor of decliners. FIIs’ net buying was Rs 1,180 crore, while DIIs’ net selling was Rs 2,854 crore.
We are in a Confirmed Uptrend but need to be prudent and cautious while adding fresh positions, as Nifty is currently trading ~20% above its 200-DMA, which is rare. We might expect some pullback in the market. However, a small pullback/consolidation is a constructive sign if Nifty holds its 21-DMA. It is advised to closely review the existing positions and book partial profits in stocks that are extended from their moving averages. We will look for leadership among some good stocks to push the market up. On the flip side, tracking distribution days is crucial. An accumulation of distribution days can halt the uptrend.
Vodafone Idea has sold its 11.15% stake in Indus Towers for a cash consideration of Rs. 37.6B.
Reliance Industries said that Reliance Retail Ventures Ltd. has completed the fundraising of Rs 47,265 crore for a 10.09% stake in the company.
-On MCX, gold slips below Rs 50,000 per 10 grams, while silver down more than 2%.
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, 72%; Rally Attempt, 8%; Uptrend Under Pressure, 20%; Downtrend, 0%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 88%; Rally Attempt, 0%; Uptrend Under Pressure, 12%; Downtrend, 0%.