At 8:00am IST, the SGX Nifty Futures was trading at 13,670, compared with Nifty’s close of 13,682 yesterday.
Market status: Confirmed Uptrend
Distribution days: Three
Global stock markets: Dow30, -0.2%; S&P 500, +0.2%; Nasdaq, +0.5%; Nikkei, +0.1%; Kospi, -0.8%; Hang Seng, -0.1%
Nifty made a gap-up opening yesterday and traded sideways in the first half of the trading session. Toward the end of the session, the index witnessed follow-up buying interest, which helped it hit a fresh high and close the day with significant gains. Volume was lower than the previous session. In fact, the volume has been decreasing consistently for the third trading session, which can be a sign of caution. In the broader market, Midcap and Smallcap outperformed the major indices with a gain of 1.2% and 1.0%, respectively.
On the sectoral front, barring Nifty PSU bank, all other sectors closed in the green. Nifty Realty (+5.1%) advanced the most, followed by Nifty Metal and Auto, which gained 1.8% and 1.0%, respectively. Further, Nifty IT, Fin Service, and FMCG were up in the range of 0.7–0.9%. Market breadth was skewed toward advancers. Of 2,233 stocks traded, 1,144 stocks advanced, 746 declined, and the remaining stocks 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. After a strong rally, a pullback/consolidation (if any) is a constructive sign if Nifty holds its 21-DMA. It is advised to closely review the existing positions and book partial profits in stocks that are extended from their moving averages. On the flip side, tracking distribution days is crucial. Accumulation of distribution days can halt the uptrend.
Wipro (Nse) completed the acquisition of an 83.4% stake in Encore Theme. The remaining stake will be acquired subject to and after receiving the required regulatory approvals.
Hero Motocorp will raise its bike prices by up to Rs 1,500 starting next year.
Jubilant Foodworks launched its biryani brand, Ekdum.
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, 92%; Rally Attempt, 0%; Uptrend Under Pressure, 8%; Downtrend, 0%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 70%; Rally Attempt, 0%; Uptrend Under Pressure, 30%; Downtrend, 0%.