At 8:00am IST, the SGX Nifty Futures was trading at 15,033, compared with Nifty’s close of 14,924 on Friday.
Market status: Confirmed Uptrend
Distribution days: Six
Global stock markets: Dow 30, +0.3%; S&P 500, +0.4%; Nasdaq, +0.6%; Nikkei, +2.0%; Hang Seng, +0.8%; Kospi, -0.3%
The market had a fabulous run last week. It closed positive in each of the five sessions on the back of growth-focused Union Budget 2021. Technically, Nifty breached its 50-DMA on January 29. On Monday, the index reclaimed it and staged an upside reversal. On Wednesday, the market status was changed to a Confirmed Uptrend as Nifty reclaimed previous highs. On the sectoral front, Nifty PSU Bank (+25%) was the top gainer. Nifty Bank and Financial Services advanced about 15% during the week. Nifty Auto, Metal, and Realty closed 10–14% higher.
On Wednesday, Nifty made a new high and moved above the previous rally high of 14,754. Hence, we changed the market status to a Confirmed Uptrend. However, the distribution day count remains elevated at six. Nifty is more than 3.5% 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.
Britannia Inds. announced Q3 FY21 results. Revenue increased 6.1% y/y to Rs 3,165 crore. PAT grew 22.8% to Rs 452.6 crore.
Maruti Suzuki India’s production for January declined to 1.60 lakh units from 1.79 lakh units in January 2020.
Punjab National Bank reported Q3 FY21 results. Revenue slightly decreased 1.6% y/y to Rs 8,313 crore. PAT was down 18.5% to Rs 506 crore.
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, 42%; Rally Attempt, 4%; Uptrend Under Pressure, 50%; Downtrend, 4%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 38%; Rally Attempt, 0%; Uptrend Under Pressure, 62%; Downtrend, 0%.