At 8:00am IST, the SGX Nifty Futures was trading at 10,625, compared with Nifty’s close of 10,618 on yesterday.
Market status: Confirmed Uptrend
Global stock markets: Dow 30, +0.9%; S&P 500, +0.9%; Nasdaq, +0.6%; KOSPI, -0.3%; Nikkei, -0.4%; Hang Seng, -1.2%
Yesterday, Nifty opened higher and remained in positive territory, led by IT stocks. It made a high of 10,826, which was more than 200 points higher than Tuesday’s close. However, in the last hour, Nifty staged a downside reversal in higher volume, closing in the bottom quartile of the session’s range. This was due to sharp selling in Nifty Bank and RIL. In the broader market, Nifty Midcap and Smallcap closed 0.7% and 0.1% lower, respectively. FIIs’ net selling was Rs 221 crore while DIIs’ net selling was Rs 900 crore.
On the sectoral front, Nifty IT gained more than 5%. Wipro (Nse) closed 16% higher after Q1 FY21 results came in above street estimates. Nifty Pharma, Metal, FMCG, and Auto closed 0.2–0.7% higher. On the flip side, Nifty Realty closed 2% lower and Nifty Bank closed 0.2% lower after a reversal of more than 700 points from intraday high. Market breadth was inclined toward decliners. Of 2,159 stocks traded, 747 advanced, 1,082 declined, and the remaining traded flat.
The Indian market remains in a Confirmed Uptrend. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, and it is an environment where outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of leading stocks and keep an open mind as to how it unfolds. We will wait for solid entry points before buying.
Larsen & Toubro Infotech’s Q1 FY21 results beat estimates on all fronts. PAT was down 2.6% q/q to Rs 416 crore. Total revenue fell 2.1% q/q to Rs 2,949 crore. Margins expanded 90bps q/q to 20.1%.
State Bank Of India’s board approved raising of funds up to Rs 25,000 crore via bonds in FY21.
Infosys’s Q1 FY21 results beat estimates on all fronts. PAT was down 2% q/q to Rs 4,233 crore, while total revenue increased 1.7% q/q to Rs 23,665 crore. Margin expanded 150bps q/q to 22.7%. The company also gave growth guidance in the range of 0–2% and operating margin to be in the range of 21–23%
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, 58%; Rally Attempt, 0%; Uptrend Under Pressure, 38%; Downtrend, 4%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 35%; Rally Attempt, 0%; Uptrend Under Pressure, 65%; Downtrend, 0%.