Market status: Confirmed Uptrend
Distribution days: Three
Global stock markets: Dow30, -1.1%; S&P 500, -1.3%; Nasdaq, -2.3%; Kospi, -1.5%; Hang Seng, -1.7%; Nikkei, -1.8%
After advancing for three consecutive sessions, Nifty succumbed to selling pressure yesterday. It opened with a cut of more than 200 points, tracking global cues. The session was volatile due to the weekly expiry of index options. India VIX was up 9%. Nifty found support at its 21-DMA and escaped adding a distribution day as volume was lower than the previous session. Barring Nifty Media (+1.6%) and Realty (+0.1%), all the sectoral indices closed in the red. Nifty Metal (-2.0%) declined the most, followed by Nifty Fin Services (-1.8%).
During the week, two distribution days expired due to aging, after which the total count decreased to three. Another distribution day is set to expire today. The decrease in distribution day count is a good sign. However, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. We may downgrade the status to an Uptrend Under Pressure if Nifty falls below its 50-DMA on higher volume and the distribution day count increases
Wipro (Nse) acquired Capco, a global management and technology consultancy firm that provides digital, consulting, and technology services to financial institutions in America, Europe, and the Asia Pacific.
Unichem Laboratories received ANDA approval from the USFDA for its Guanfacine tablets.
Isgec Heavy Engineering received orders for waste heat recovery boilers from Shree Cement.
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, 50%; Rally Attempt, 4%; Uptrend Under Pressure, 46%; 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%.