At 8:00am IST, the SGX Nifty Futures was trading at 14,635, compared with Nifty’s close of 14,564 yesterday.
Market status: Confirmed Uptrend
Distribution days: Three
Global stock markets: Dow 30, +0.2%; S&P 500, +0.04%; Nasdaq, +0.3%; Nikkei, +0.6%; Hang Seng, +0.2%; Kospi, +0.1%
Yesterday, Nifty started the session on a flat note and traded in a narrow range in the first half. Around noon, Nifty broke above its day’s range and the market remained in an upward momentum. Intraday, it made a new ATH of 14,590 and closed at a record high of 14,563. Broader market indices, Nifty Midcap (+0.7%) and Smallcap (+0.1%), also closed higher. Barring Nifty Pharma (-1.3%), FMCG (-0.6%), and IT (-0.2%), all the sectoral indices closed higher. Nifty PSU Bank (+5.9%) was the top gainer, followed by Realty (+2.8%). Market breadth was skewed toward advancers. Of 2,226 stocks traded, 1,032 advanced, 860 declined, and the remaining were unchanged.
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.
Infosys and Wipro (Nse) will report their Q3 results today.
Tech Mahindra has announced to buy the entire stake in Payments Technology for $9M.
Bharat Rasayan received the board’s approval for the proposal of buyback of 2.2% shares at Rs 11,500 per share.
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%.