SGX Nifty Indicates Muted Opening; Adani Ports’ Board Approves Plan to Raise $1.25B

Market Preview

At 8:00 am IST, the SGX Nifty Futures was trading at 10,785, compared with Nifty’s close of 10,799 yesterday.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, -1.5%; S&P 500, -1%; Nasdaq, -0.9%; KOSPI, -0.2%; Nikkei, -0.3%; Hang Seng, -1.4%

Yesterday, after a positive opening, Nifty witnessed selling pressure and fell toward the day's low of 10,690. However, it staged a reversal and closed the volatile day near 10,800, holding minor gains. Further, the index inched closer to its 200-DMA (10,885). Volume was higher than that of the previous session. In the broader market, Nifty Midcap and Smallcap closed with a gain of 0.4% and 1.0%, respectively. FIIs’ net buying was Rs 830 crore and DIIs’ net selling was Rs 785 crore.

On the sectoral front, results were mixed. Nifty IT and Nifty PVT Bank gained more than 2% each, while Nifty Bank and Nifty Financial Services advanced in the range of 1–2%. On the flip side, Nifty Metal (-1.7%) and Nifty Realty (-0.7%) were the top two decliners. The market breadth was inclined toward decliners. Of 2,127 stocks traded, 879 advanced, 958 declined, and the remaining traded flat.

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.

Key News

Unichem Laboratories received approval from the U.S. FDA to market its Cyclobenzaprine Hydrochloride tablets. It is used for relief from muscle spasm.

Titan Industries (Nse) in its Q1 FY21 update said that it has reopened 83% stores across all its businesses as of the end of June. Sales in June was 70% that of June 2019. It was higher in non-metros versus metros.

Adani Ports and Special Economic Zone board approved the plan to raise $1.25B through dollar bonds to fund the acquisition of Krishnapatnam Port Co. Ltd.

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, 58%; Rally Attempt, 0%;Uptrend Under Pressure, 42%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 20%; Rally Attempt, 0%; Uptrend Under Pressure, 80%; Downtrend, 0%.

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