At 8:00am IST, the SGX Nifty Futures was trading at 11,895, compared with Nifty’s close of 11,897 yesterday.
Market status: Rally Attempt
Global stock markets: Dow 30, +0.5%; S&P, +0.5%; Nasdaq, -0.02%; Nikkei, +0.2%; Hang Seng, -0.1%
Yesterday, Nifty opened with a cut and traded range bound. It remained in negative territory during the day and found resistance near Wednesday’s close of 11,938. The good part is Wednesday’s low was not breached and volume was comparatively lower. Nifty is trading 3.6% and 11.1% above its 50- and 200-DMA, respectively. The broader market outperformed benchmark indices and closed 0.6% and 1.1% higher, respectively.
On the sectoral front, there was a notable gain only in Nifty Metal (+0.8%). Nifty FMCG and Realty managed to close 10–20bps higher. On the flip side, Nifty Pharma, Bank, and IT closed 50–80bps lower.
Looking forward, we would prefer to see a follow-through day before shifting the market to a Confirmed Uptrend. (A follow-through day is a solid up session, generally a 1.5% or higher gain, with volume being higher than the previous day). Should this occur, the focus will be on ideas that show the best relative strength with good accumulation. Stocks that recover the quickest tend to lead the next run. On the flip side, if Nifty breaches its recent low of 10,790, the market will be moved back to a Downtrend.
Mphasis (Nse) reported Q2 FY21 results. Profit advanced 8.8% y/y to Rs 299.2 crore, while revenue increased to Rs 2,435.4 crore from Rs 2,288 crore on a y/y basis. Margin improved 40bps to 16.1%.
Hexaware Techs. (Nse) reported Q2 FY21 results. Profit was up 6.8% q/q to Rs 162.7 crore, while revenue increased to Rs 1,585.9 crore from Rs 1,569.1 crore on a q/q basis. Margin improved 80bps to 13%.
Ambuja Cements reported Q2 FY21 results. Profit was up 87.8% y/y to Rs 440.5 crore, while revenue increased to Rs 2,852.5 crore from Rs 2,626 crore on a y/y basis. Margin improved 710bps to 23.8%.
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, 15%; Rally Attempt, 10%; Uptrend Under Pressure, 50%; Downtrend, 25%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 20%; Rally Attempt, 5%; Uptrend Under Pressure, 65%; Downtrend, 10%.