At 8:00am IST, the SGX Nifty Futures was trading at 14,563, compared with Nifty’s close of 14,596 yesterday.
Market status: Confirmed Uptrend
Distribution days: Three
Global stock markets: Dow 30, -0.2%; S&P 500, -0.4%; Nasdaq, -0.2%; Nikkei, -0.2%; Hang Seng, +0.1%; Kospi, -1.9%
Yesterday, Nifty opened the day on a negative note and slipped 80 points in the first hour. It looked like Nifty’s kite won’t fly higher, however, as the day wore on, it staged an upside reversal and closed in the green. The momentum shift was mainly due to a sharp recovery in Infosys after opening lower and TCS gaining more strength as the day progressed. On the sectoral front, Nifty FMCG (+0.8%) and Pharma (+0.8%) were the top gainers. On the flip side, Nifty Metal closed 1% lower.
With leadership broadening and indices above relevant intermediate term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial as rise in distribution days can halt the uptrend.
Larsen & Toubro Infotech announced to expand its multi-year, global alliance with IBM to help businesses transform their operations through open hybrid cloud adoption.
HFCL posted Q3 FY21 earnings today. Consolidated PAT was up 78.3% y/y to Rs 82.2 crore, while revenue rose 49.7% y/y to Rs 1,277.5 crore.
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, 84%; Rally Attempt, 4%; Uptrend Under Pressure, 12%; Downtrend, 0%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 66%; Rally Attempt, 0%; Uptrend Under Pressure, 34%; Downtrend, 0%.