At 8:00am IST, the SGX Nifty Futures was trading at 11,987, compared with Nifty’s close of 11,971 yesterday.
Market status: Rally Attempt
Global stock markets: Dow 30, -0.6%; S&P, -0.7%; Nasdaq, -0.8%; Nikkei, -0.5%; Hang Seng, -1.1%
Yesterday, Nifty opened on a negative note and made an intraday low of 11,822. Profit booking was seen across the sectors. However, strong buying was seen in the banking stocks, which pushed Nifty higher to close in the green. This was the 10th consecutive session of advancement on Nifty, which is a record in the last few years. Volume was lower than the previous session. In the broader market, Nifty Midcap continued to close in the red and was down 0.2%, while Smallcap advanced 0.3%. On the sectoral front, the majority of sectoral indices closed in the green. Nifty Fin Services (+1.8%) advanced the most, followed by other financial related stocks.
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.
Den Networks reported Q2 FY21 results. Profit stood at Rs 36.7 crore as against Rs 9.5 crore in Q2 FY20, while revenue increased to Rs 337.7 crore from Rs 332.4 crore on a y/y basis.
Tata Elxsi (Nse) reported Q2 FY21 results. Profit stood at Rs 78.9 crore as against Rs 49.8 crore in Q2 FY20, while revenue advanced to Rs 430.2 crore from Rs 385.8 crore on a y/y basis.
Jtl Infra reported Q2 FY21 results. Profit stood at Rs 2.9 crore as against Rs 2.2 crore in Q2 FY20, while revenue jumped to Rs 79.9 crore from Rs 45.0 crore on a y/y basis.
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%.