At 8:00am IST, the SGX Nifty Futures was trading at 11,092, compared with Nifty’s yesterday close of 11.095.
Market status: Confirmed Uptrend
Global stock markets: Dow 30, +0.6%; S&P 500, +0.4%; Nasdaq, +0.4%; KOSPI, +0.5%; Nikkei, -0.8%; Hang Seng, -0.1%
Yesterday, Nifty had a gap-up start but found resistance near its 21-DMA and gave up the opening gains. After a volatile action in the opening hour, Nifty rebounded sharply and gained more than 200 points from its intraday low. Volume was lower compared with the last few sessions when selling pressure was high. RIL (+7%) and HDFC Bank (+4%) were the major contributors to benchmark indices.
The rally was broad based where Nifty Midcap and Smallcap indices closed with notable gains. Market breadth was skewed toward advancers. Of 2,170 stocks traded, 1,200 advanced, 626 declined, and the remaining traded flat.
Nifty closed more than 1% above its 21-DMA (10,965). We would like to see Nifty hold its 21-DMA. In case the distribution day count increases and Nifty breaches its 21- and 200-DMA, we may downgrade the market to an Uptrend Under Pressure.
Tata Consumer Products announced Q1 FY21 results yesterday after market hours. Consolidated revenue from operations increased 13.4% y/y to Rs 2,713 crore. PAT grew 97% to Rs 389 crore.
Pi Industries released Q1 FY21 results yesterday after market hours. Consolidated revenue from operations grew 40.6% y/y to Rs 1,060 crore. PAT increased 43.2% to Rs 145 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, 46%; Rally Attempt, 0%; Uptrend Under Pressure, 42%; Downtrend, 12%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 20%; Rally Attempt, 0%; Uptrend Under Pressure, 68%; Downtrend, 12%.