At 8:00am IST, the SGX Nifty Futures was trading at 14,280, compared with Nifty’s close of 14,137 yesterday.
Market status: Confirmed Uptrend
Distribution days: Three
Global stock markets: Dow 30,+0.7%; S&P500,+1.5%; Nasdaq,+2.6%; Nikkei, +1.7%; Hang Seng, +0.9%; Kospi, +2.4%
Yesterday, after a gap-up opening and a new high, Nifty pared the opening gains and gradually slipped more than 100 points during the day but traded in positive territory. Due to last hour profit booking, Nifty closed briefly in the red. Volume was lower than the previous session. There was strong momentum in the broader market with Nifty Midcap and Smallcap closing 1.4% higher.
It was a mixed reaction on the sectoral front. Nifty Metal (+3.5%) was the top gainer, followed by Realty (+1.2%). Nifty Bank, Financial Services, and Auto closed 0.4–0.6% higher. On the flip side, Nifty FMCG, IT, and Pharma closed 0.4–0.8% 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.
Bharat Rasayan announced its plan to consider the buyback proposal of equity shares on January 12.
Tata Consultancy Svs. will declare its Q3 FY21 earnings today.
The government estimates that India's real GDP during FY21 will stand at -7.7% as against the growth rate of 4.2% in FY20.
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%.