SGX Nifty Indicates a Negative Opening; RailTel to List on Exchanges Today

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 14,906, compared with Nifty’s close of 15,097 yesterday.

Market status: Confirmed Uptrend

Distribution days: Five

Global stock markets: Dow30, -1.8%; S&P 500, -2.5%; Nasdaq, -3.5%; Kospi, -2.8%; Hang Seng, -1.9%; Nikkei, -2.4%

Yesterday, Nifty opened about 100 points higher and hit the day’s high in the initial hour. As the session progressed, it traded in a narrow range, consolidating gains amid volatility to close the session holding decent returns. Volume was higher than the previous session. In the broader market, both Midcap and Smallcap outperformed to close with a gain of 1.5% and 1.4%, respectively. Barring Nifty Finservice (-0.2%) and Nifty FMCG (-0.3%), all the sectoral indices closed in the green. Metal-related stocks advanced the most.  Yesterday, FIIs were net buyers at Rs 188 crore, while DIIs were net sellers at Rs 746 crore.

The distribution day count decreased to five on Monday and one distribution day will expire today. One more distribution day will expire on Monday. A low distribution day count and the market back above its 21-DMA is a constructive set up. However, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. We may downgrade the status to an Uptrend Under Pressure if Nifty falls below its 21-DMA on higher volume and the distribution day count increases.

Key News

Equitas Holdings: In a bulk deal, CDC Group PLC sold 89,30,410 shares in the company at Rs 88.2 per share.

-RailTel Corporation of India will list on the exchanges today.

Hatsun Agro Product commenced commercial production at its Solapur facility in Maharashtra.

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%.