At 8:00am IST, the SGX Nifty Futures was trading at 12,649, compared with Nifty’s close of 12,461 yesterday.
Market status: Confirmed Uptrend
Distribution Day: Zero
Global stock markets: Dow 30, +3%; S&P, +1.2%; Nasdaq, -2.2%; Nikkei, +0.9%; Kospi, +0.02%; Hang Seng, +1%
Yesterday, Nifty hit a lifetime high in the first hour of the trading session. As the session progressed, the index witnessed a mild profit booking but was able to hold the majority of opening gains and traded constructively in the last hours to close near the day's high. Though the index advanced more than 1.5% for the day, yesterday’s session did not qualify as an additional follow-through day as volume was lower than the previous day. In the broader market, both Midcap and Smallcap failed to catch up with the general market and closed 0.9% and 0.3% higher, respectively.
On the sectoral front, barring Nifty Media, all other sectors closed in the green. Nifty Bank and Pvt Bank advanced more than 2.5%. Nifty Fin Service, IT, and Metal advanced 1.5–2.1%. Market breadth remained in favor of advancers. Of 2,230 stocks traded, 1,119 advanced, 729 declined, and the rest remained unchanged. FIIs net buying was Rs 4,548 crore, while DIIs net selling was Rs 3,036 crore.
Currently, we are in a Confirmed Uptrend and are open to adding new positions coming out of proper base formation. We will look for leadership among some good stocks to push the market up. On the flip side, tracking distribution days is crucial. Accumulation of distribution days can halt the uptrend.
The U.S. pharma company Pfizer and German firm BioNTech have said that their COVID-19 vaccine in phase-3 trial is more than 90% effective in preventing COVID-19 in those who have not contracted the infection. This means that the company is on track to file an emergency use application with the U.S. regulators in November.
Jk Cement reported Q2 FY21 results. Revenue increased 24% y/y to Rs 1,634 crore. PAT came at Rs 221.55 crore compared with Rs 79.50 crore in Q2 FY20.
Oil India reported Q2 FY21 results. PAT came at Rs 381.75 crore, lower than Rs 661.53 crore in Q2 FY20. PAT was lower largely due to lower oil prices and one-time expense it incurred on controlling a blowout in Assam.
-Yesterday, Gold and Silver prices dropped 4–6%, while crude oil was up 10%.
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, 25%; Rally Attempt, 16%; Uptrend Under Pressure, 55%; Downtrend, 4%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 54%; Rally Attempt, 17%; Uptrend Under Pressure, 29%; Downtrend, 0%.