Market status: Downtrend
Global stock markets: Dow30, +0.9%; S&P 500, +1.1%; Nasdaq, +1.3%; Nikkei, +0.2%; Kospi, -0.1%
Yesterday, Nifty started the session on a flat note but was down more than 170 points in the first half of the day. Strong buying in the second half helped Nifty pare its losses and end 0.5% higher. The volume was slightly lower than the previous session.
On the sectoral front, it was a mixed reaction. Nifty Metal (+1.4%) and Pharma (+1.4%) advanced the most, followed by Nifty Fin Services (+1.2%). On the flip side, Nifty Auto (-1.3%) and Nifty PSU Bank (-1.3%) were the major decliners.
On Monday, we moved the market to a Downtrend as Nifty breached its 50-DMA on higher volume, distribution day count increased to seven, and many leading stocks failed to hold their logical support levels. Yesterday's session was considered Day 2 of an attempted rally as Nifty traded above Tuesday’s low of 14,249. We need one more such session to change the market status to a Rally Attempt. From there, we would prefer to see a [follow-through day] before shifting the market back to a Confirmed Uptrend. Should this occur, the focus will be on ideas breaking out of early-stage base patterns and showing the best relative strength, with good accumulation.
Mindtree (Nse) will declare its Q1 FY22 results today.
Wipro (Nse) declared its Q4 FY21 results. EBIT grew 1.1% q/q to Rs 3,417 crore, while revenue grew 3.9% q/q to Rs 16,334 crore.
Ashoka Buildcon received a letter of award for an electrification project worth Rs 334 crore in the Ahmedabad division of Western Railways.
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, 30%; Rally Attempt, 12%; Uptend Under Pressure, 52%; Downtrend, 6%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 65%; Rally Attempt, 10%; Uptend Under Pressure, 25%; Downtrend, 0%.