At 8:00am IST, the SGX Nifty Futures was trading at 11,122, compared with Nifty’s yesterday close of 11.101.
Market status: Confirmed Uptrend
Global stock markets: Dow 30, +1.4%; S&P 500, +0.6%; Nasdaq, +0.5%; KOSPI, +1.3%; Nikkei, +0.1%; Hang Seng, -1.2%
After a gap-up opening, Nifty remained in positive momentum in the first hour of trade yesterday. The index slipped more than 150 points from its intraday high but managed to close in positive territory. Volume was higher compared with yesterday’s session when selling pressure was high.
Though benchmark indices were under pressure, Nifty Midcap (+0.6%) and Smallcap (+1.1%) progressed well. Market breadth was skewed toward advancers. Of 2,164 stocks traded, 1,156 advanced, 664 declined, and the remaining traded flat. On sectoral front, Nifty Metal (+4.2%) and Auto (+2.1%) outperformed. For the rest of sectors, action was mixed and muted. Nifty Bank, Financial Services, and IT closed in the green, while Nifty FMCG and Pharma closed in the red.
Nifty closed more than 1% above its upward trending 21-DMA (10,980). 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.
Adani Enterprises (Nse), Canfin Homes, Deepak Nitrite, Kei Industries, and Lupin (Nse) will report their Q1 FY21 results today.
Apollo Tyres (Nse) announced Q1 FY21 results yesterday after market hours. Consolidated revenue from operations decreased 33.7% y/y to Rs 2,873 crore. It posted a loss of Rs 134.5 crore compared with Rs 141.6 crore profit in the corresponding quarter last year.
Canara Bank (Nse) released Q1 FY21 results yesterday after market hours. Standalone total income increased 47% y/y to Rs 20,685 crore. PAT rose 23.5% to Rs 406 crore. GNPAs increased 7bps to 8.84%.
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%.