At 8:00am IST, the SGX Nifty Futures was trading at 11,664, compared with Nifty’s close of 11,642 on Friday.
Market status: Rally Attempt
Global stock markets: Dow 30, -0.6%; S&P, -1.2%; Nasdaq, -2.5%; Nikkei, +1.6%; Kospi, +1.3%; Hang Seng, +0.5%
Nifty traded near its 21-DMA during the last week. The index breached its 21-DMA on Wednesday and traded below it throughout the week. On Friday, it found support at its 50-DMA and rebounded from it. Currently, it is trading 1.2% below its 21-DMA and above its long-term moving averages.
Barring Nifty Energy (+0.5%) all the sectoral indices closed lower during the week. Nifty PSU Bank (-4.5%) declined the most, followed by Nifty Auto (-4.2%) and Metal (-4.1%). On Friday, the advance-decline ratio was skewed toward advancers. Of 2,213 stocks traded, 950 advanced, 885 declined, and the rest remained unchanged.
Looking forward, we would like Nifty to reclaim its 21-DMA. We will continue to monitor general conditions and the behavior of leading stocks, looking for evidence that a real move is commencing. During this time, one should look for stocks with quality fundamentals, RS line trending higher, and breaking out from consolidation areas.
Icici Bank reported Q2 FY21 results during the weekend. NII increased 16% y/y to Rs 9,366 crore. PAT increased 6x to Rs 4,251 crore, compared with Rs 655 crore in the corresponding quarter last year. Total deposits grew 20% to Rs 8,32,936 crore.
Idfc First Bank reported Q2 FY21 results during the weekend. NII was up 22% y/y to Rs 1,660 crore, while the total income grew 21% to Rs 2,288 crore. NIM improved 4bps y/y and 114bps q/q to 4.57%.
Reliance Industries reported Q2 FY21 results on Friday after market hours. Consolidated revenue from operations declined 24.2% y/y to Rs 1.16T. PAT decreased 15.1% to Rs 9,567 crore. Debt-to-equity ratio improved to 0.46 from 0.75 in the previous quarter.
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, 4%; Rally Attempt, 4%; Uptrend Under Pressure, 76%; Downtrend, 16%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 4%; Rally Attempt, 0%; Uptrend Under Pressure, 50%; Downtrend, 46%.