At 8:00am IST, the SGX Nifty Futures was trading at 13,770, compared with Nifty’s close of 13,740 yesterday.
Market status: Confirmed Uptrend
Distribution days: Three
Global stock markets: Dow30, +0.5%; S&P 500, +0.6%; Nasdaq, +0.8%; Nikkei, -0.1%; Kospi, -0.2%; Hang Seng, -0.7%
Yesterday, Nifty made an opening above 13,700 and retained its momentum through the day. The index made higher highs on the hourly chart to make a fresh life-time high during the day. However, during the last hour, Nifty witnessed minor profit-booking and closed about 33 points off high to close below 13,750. Volume was lower than the previous session. The declining trend of volume has reached the fourth day in a row, which can be a sign of caution. In the broader market, Midcap closed 0.3% lower, while Smallcap closed with a gain of 0.2%.
On the sectoral front, a mixed reaction was observed. Nifty Finservice (+1.2%) advanced the most, followed by Nifty Realty and Bank, which gained 0.6% and 0.5%, respectively. On the flip side, Nifty Media, PSU Bank, and Metal were down in the range of 1.4–1.9%. Market breadth was skewed toward decliners. Of 2,233 stocks traded, 846 stocks advanced, 1,068 declined, and the remaining stocks remained 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, 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.
Sbi Cards And Payment Services has proposed to raise NCDs up to Rs 450 crore.
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Bharat Petroleum has approved the merger of Bharat Gas Resources with itself.
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%.