At 8:00am IST, the SGX Nifty Futures was trading at 13,890, compared with Nifty’s close of 13,968 yesterday.
Market status: Uptrend Under Pressure
Distribution days: Five
Global stock markets: Dow 30, -2.1%; S&P 500, -2.6%; Nasdaq, -2.6%; Nikkei, -1.1%; Hang Seng, -1.6%; Kospi, -1.2%
Yesterday, after opening flat, Nifty quickly turned negative and the selling intensified as the session progressed. In the last four trading sessions, it declined 5.3% from its all-time high of 14,753 and turned negative for the year. 76% of the Nifty50 stocks declined today. Tata Motors (-4.2%) and Tata Steel (-3.9%) were the major decliners. Nifty fell more than 0.2% on volume higher than the previous session, which qualified as a distribution day. As one distribution day expired today, the count is unchanged.
We downgraded the market status to Uptrend Under Pressure as it breached its 21-DMA and due to elevated distribution. We will continue to monitor the market and look for signs of strength or weakness. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and/or showing technical weakness.
Hindustan Unilever posted Q3 FY21 earnings. PAT was up 18.9% y/y to Rs 1,921 crore, while revenue rose 20.9% y/y to Rs 11,862 crore.
Jk Paper posted Q3 FY21 earnings. Revenue was down 9.2% y/y to Rs 744.9 crore, while PAT stood at Rs 65.9 crore as against Rs 131.9 crore for the same quarter last year.
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, 79%; Rally Attempt, 0%; Uptrend Under Pressure, 21%; Downtrend, 0%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 46%; Rally Attempt, 0%; Uptrend Under Pressure, 54%; Downtrend, 0%.