At 8:30am IST, the SGX Nifty Futures was trading at 14,828, compared with Nifty’s close of 14,675 yesterday.
Market status: Confirmed Uptrend
Distribution days: Five
Global stock markets: Dow30, +0.1%; S&P 500, -0.8%; Nasdaq, -2.5%; Kospi, -0.1%; Hang Seng, +1.1%
Yesterday, Nifty opened slightly higher but faced resistance around 15,000 and continued its downtrend through the session. The index extended the loss for the fifth consecutive session and breached its 21-DMA. As volume was lower, it was not considered as a distribution day. Barring Nifty Metal (+1.6%), all the sectoral indices closed lower. Nifty Media (-3.4%) was the major decliner. All the other sectoral indices closed more than 1.2% lower. Yesterday, FIIs’ net selling was Rs 893 crore, while DIIs’ net selling was Rs 919 crore.
Yesterday, one distribution day expired due to ageing. The distribution day count decreased to five. Even though Nifty breached its 21-DMA, volume was lower. We may downgrade the status to an Uptrend Under Pressure if it falls on higher volume. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions.
The U.S. treasury secretary Janet Yellen termed Bitcoin as “highly speculative” and “inefficient” for transactions. Bitcoin slipped below $50,000 from an all-time high of $58,000.
Bharat Forge signed an agreement with Paramount Group for the production of protected vehicles in India.
Crude oil prices rebound sharply and moved near $64 per barrel. Also, metals such as gold, silver, and copper rallied 2–3%.
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%.