SGX Nifty Indicates a Negative Opening; IDFC First Bank to Raise Rs 3,000 Crore

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 15,036, compared with Nifty’s close of 15,119 yesterday.

Market status: Confirmed Uptrend

Distribution days: Six

Global stock markets: Dow30, -0.4%; S&P 500, -0.4%; Nasdaq, -0.7%; Nikkei, -1%; Kospi, -1.3%; Hang Seng, -1.2%

Yesterday, Nifty opened higher but witnessed profit booking and made a low of 15,078. However, little buying interest in the last hour helped the index to close about 40 points off lows. The index extended the loss for the third consecutive session. Further, volume was higher than the previous session, and hence, yesterday’s session qualified as a distribution day. On the sectoral front, a mixed reaction was observed. Nifty IT staged a reversal and closed with a gain of 1.3%. Nifty PSU Bank continued to advance. On the flip side, Nifty Auto (-1.4%) and Nifty Fin Service (-1.5%) closed in the red. FIIs’ net buying was Rs 903 crore, while DIIs’ net selling was Rs 1,217 crore.

The market status remains in a Confirmed Uptrend. However, the distribution day count is at six. But, on a positive note, no new distribution day was added over the last two weeks. Nifty is trading 2.5% above its 21-DMA. If the 21-DMA is breached, we may downgrade the status to an Uptrend Under Pressure. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions.

Key News

Dlf (Nse) has completed the acquisition of a 51.8% stake in Fairleaf at a consideration of Rs 779.40 crore.

Idfc First Bank’s board approved raising up to Rs 3,000 crore via securities.

-RailTel IPO has been subscribed more than 42 times.

-In the weekly U.S. job data, new jobless claims totaled 8.61 lakh compared with estimates of 7.73 lakh.

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, 50%; Rally Attempt, 4%; Uptrend Under Pressure, 46%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 46%; Rally Attempt, 0%; Uptrend Under Pressure, 54%; Downtrend, 0%.