At 8:00am IST, the SGX Nifty Futures was trading at 14,188, compared with Nifty’s Monday close of 14,239.
Market status: Confirmed Uptrend
Distribution days: Five
Global stock markets: Dow 30, -0.1%; S&P 500, -0.2%; Nasdaq, -0.1%; Nikkei, +0.2%; Hang Seng, +0.02%; Kospi, -0.01%
On Monday, Nifty gapped higher in the morning and tried to reclaim 14,500. However, it staged a downside reversal and dropped 200 points. The volatility was high as Nifty moved 150 points higher from the day’s low in the second hour. It slipped again and closed below its 21-DMA for the first time in three months. As the volume in Nifty was lower compared with the previous session, we did not mark Monday's session as a distribution day. The count is now elevated to five, with one distribution day set to expire today. On the sectoral front, Nifty Pharma gained 1.8%. Nifty Bank, Financial Services, and Metal closed flat. On the flip side, Nifty IT, Auto, and Realty closed 0.5–1.5% lower.
The distribution day count is at five (one expires on Wednesday) and many stocks have breached their 21- and/or 50-DMA. Also, Nifty has breached its 21-DMA. If distribution day count increases, we may downgrade the market status to an Uptrend Under Pressure. We will continue to monitor the market and look for signs of strength or weakness. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and/or showing technical weakness.
Larsen & Toubro posted Q3 FY21 earnings. PAT was up 4.9% y/y to Rs 2,466.7 crore, while revenue fell 1.8% y/y to Rs 35,596.4 crore.
Navin Fluorine Intl. posted Q3 FY21 earnings. Revenue was up 29.7% y/y to Rs 58.9 crore, while PAT stood at Rs 309.1 crore as against Rs 260.5 crore for the same quarter last year.
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%.