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Nifty Gallops 71% in FY21; FIIs Net Buying Crossed Rs 2 Lakh Crore in Last 12 Months

April 01 2021
At 8:00am IST, the SGX Nifty Futures was trading at 14,840, compared with Nifty’s close of 14,690, yesterday.

Market status: Uptend Under Pressure

Distribution days: Six

Global stock markets: Dow30, -0.3%; S&P 500, +0.4%; Nasdaq, +1.5%; Nikkei, +1.2%; Hang Seng, +0.7%; Kospi, +0.7%

Yesterday, Nifty had a muted opening. It made a day’s high near the open and succumbed to selling pressure to close near the day’s low. In the process, the index closed below its 21- and 50-DMA. Despite falling more than 0.2%, the index escaped a distribution day as volume was lower compared with the previous session. In the broader market, Nifty Midcap and Smallcap outperformed, each closing with a gain of 0.4%.

On the sectoral front, performance was mixed. Nifty Realty (+1.7%) led the rally followed by Nifty PSU Bank and Nifty FMCG, which closed with gains of 1.3% and 1.0%, respectively. On the flip side, Nifty Financial Service, Nifty Bank, and Nifty Pvt Bank were the major decliners, which closed lower in the range of 1.5–2.0%. FIIs bought more than Rs 2 lakh crore of Indian equities in FY21. On the flip side, DIIs net selling was more than Rs 1.25 lakh crore.

The index is currently hovering around its key moving averages. From here, we would like the index to firmly trade above its key moving averages. On the flip side, we will change the status to a Downtrend, if one more distribution day is added or if Nifty makes a decisive breach of its key moving averages and if market leaders show signs of deterioration in their price actions.

Key News

Adani Green Energy completed acquisition of Surajkiran Renewable Resources from Skypower Southeast Asia III Investments Ltd and Skypower Southeast Asia Holdings 2 Ltd.

Sunteck Realty will develop seven acres of waterfront residences at Borivali West in Mumbai. The company estimates to see a revenue generation of over Rs 1,750 crore.

-Gold price rebounds sharply, moves above Rs 44,500.

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, 30%; Rally Attempt, 12%; Uptend Under Pressure, 52%; Downtrend, 6%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 52%; Rally Attempt, 4%; Uptend Under Pressure, 40%; Downtrend, 4%.

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