At 8:00am IST, the SGX Nifty Futures was trading at 14,861, compared with Nifty’s close of 14,790 yesterday.
Market status: Confirmed Uptrend
Distribution days: Six
Global stock markets: Dow 30, +0.1%; S&P 500, +0.1%; Nasdaq, -0.1%; Nikkei, -0.4%; Hang Seng, +0.2%; Kospi, -0.8%
Nifty gapped up higher yesterday morning and gained strength as the day progressed. It crossed 14,754 and made a new high. Sensex closed above 50,000 for the first time. Volume was higher than average but lower compared with yesterday’s session. After underperforming benchmark indices for a couple of sessions, broader indices outperformed yesterday.
Advance-decline ratio was skewed toward advancers. Out of 2,222 stocks, 1,165 advanced and 703 declined. On the sectoral front, barring Nifty FMCG (-0.1%) and Realty (-0.4%), all other indices closed in the green. Nifty Bank, Auto, and Financial Services continued their rally and gained more than 1% each. Nifty Pharma was the outperformer with a gain of 2.8%.
Last week, market status was changed to an Uptrend Under Pressure due to a rise in distribution days and Nifty breaching its 21-DMA. Yesterday, 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% above its 21-DMA. If 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.
Vip Industries announced Q3 FY21 results. Revenue surged 125% q/q to Rs 243 crore. It reported a loss of Rs 7 crore compared with a profit of Rs 35 crore q/q.
Bharti Airtel reported Q3 FY21 results. Consolidated revenue grew 6% q/q to Rs 26,517.8 crore. It reported a profit of Rs 853.6 crore compared with a loss of Rs 763.2 crore in the previous quarter. ARPU increased to Rs 166 from Rs 162 in the previous quarter.
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, 16%; Rally Attempt, 0%; Uptrend Under Pressure, 84%; Downtrend, 0%.