At 8:00am IST, the SGX Nifty Futures was trading at 13,640, compared with Nifty’s close of 13,568 yesterday.
Market status: Confirmed Uptrend
Distribution days: Three
Global stock markets: Dow30, +1.1%; S&P 500, +1.3%; Nasdaq, +1.3%; Nikkei, +0.2%; Kospi, +0.3%; Hang Seng, +0.7%
Nifty made a muted opening yesterday and slipped further in the initial hours of the trading session. However, it staged a reversal from the day's low of 13,447 and recovered about 120 points to close flat for the day. Volume was lower than the previous session. In the broader market, Midcap continued to outperform with a gain of 0.5%, while Smallcap posted a mediocre gain of 0.2%. Nifty is trading 3.2% and 8.8% above its 21- and 50-DMA, respectively. Also, whenever any intraday dip occurred in the last few trading sessions, market participants immediately bought it, marking a positive sign, which indicates strength in the current uptrend.
On the sectoral front, Nifty Media (+1.8%) continued to advance the most, followed by Nifty Metal and Fin Service, which gained 0.8% each for the day. On the flip side, Nifty PSU Bank and FMCG declined in the range of 1.3–1.5%. Market breadth was skewed toward advancers. Of 2,233 stocks traded, 1,204 stocks advanced, 697 declined, and the remaining stocks remained unchanged.
With leadership broadening and indices above relevant intermediate term-moving averages, we will continue to look for leadership-quality growth names to form entry points. After a strong rally, pullback/consolidation (if any) is a constructive sign if Nifty holds its 21-DMA. It is advised to closely review the existing positions and book partial profits in stocks that are extended from their moving averages. On the flip side, tracking distribution days is crucial. An accumulation of distribution days can halt the uptrend.
According to MFIN report, loans disbursed by NBFCs-MFIs declined 43% y/y to Rs 10,617 crore in the September 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, 92%; Rally Attempt, 0%; Uptrend Under Pressure, 8%; Downtrend, 0%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 67%; Rally Attempt, 0%; Uptrend Under Pressure, 33%; Downtrend, 0%.