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Market is in a Confirmed Uptrend; ITC, Cipla, and Ashok Leyland to Report Today

November 06 2020
Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 12,146, compared with Nifty’s close of 12,120 yesterday.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, +1.9%; S&P, +1.9%; Nasdaq, +2.6%; Nikkei, +0.9%; Kospi, +0.1%; Hang Seng, -0.3%

Yesterday, Nifty made a gap-up opening above 12,000, taking cues from global markets. It was able to hold the opening gains throughout the day and traded constructively to close near the day's high posting solid returns. Nifty is currently placed about 2.5% below its 52-week high. In the broader market, both Midcap and Smallcap performed in sync with the general market and closed 1.8% and 1.7% higher, respectively.

On the sectoral front, barring Nifty Realty, all other sectors closed in the green. Nifty Media and Metal advanced more than 4%. Nifty Bank, Fin Service, FMCG, Pvt Bank, and PSU bank advanced 1.5–3.0%. Market breadth witnessed significant improvement. Of 2,211 stocks traded, 1,347 advanced, 491 declined, and the rest remained unchanged.

Nifty and Sensex closed yesterday’s session with strong gains, up about 1.8%. Though volume was a little lower than the previous session on Nifty, it was above average. Also, volume was 1.9x on Sensex.  Nifty and Sensex are both above their upward trending 21- and 50-DMA. Additionally, leading stocks are progressing well on breaking out from consolidation, and market breadth has improved on comparatively higher volume. Hence, we considered yesterday’s action as a follow-through day, and we have upgraded the market to a Confirmed Uptrend.

Key News

ItcCiplaAshok LeylandMrfBharat Heavy Electricals Ltd, and Steel Auth.Of Ida. (Nse) will report their Q2 FY21 results today.

Berger Paints India reported Q2 FY21 results yesterday after market hours. Revenue increased 9.0% y/y to Rs 1,742.6 crore, while PAT surged 13.8% to Rs 221 crore.

Dalmia Bharat reported Q2 FY21 results yesterday after market hours. Revenue rose 7.8% y/y to Rs 2,410 crore. PAT surged 544% to Rs 232 crore.

Birlasoft reported Q2 FY21 results yesterday after market hours. Revenue from operations grew 10.8% y/y to Rs 857.4 crore, while PAT increased 69.4% to Rs 69.1 crore.

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, 25%; Rally Attempt, 16%; Uptrend Under Pressure, 55%; Downtrend, 4%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 54%; Rally Attempt, 17%; Uptrend Under Pressure, 29%; Downtrend, 0%.

 

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