At 8:00am IST, the SGX Nifty Futures was trading at 15,010, compared with Nifty’s close of 14,929 yesterday.
Market status: Confirmed Uptrend
Distribution days: Four
Global stock markets: Dow30, +0.5%; S&P 500, +0.7%; Nasdaq, +1.1%; Nikkei, +0.6%; Hang Seng, +0.6%; Kospi, +0.3%
After a muted opening yesterday, Nifty was under selling pressure and dropped 300 points from the day's high. However, in the last couple of hours, Nifty recovered more than half of its intraday losses and closed 0.7% lower. But, it failed to reclaim its 21-DMA. The session was not considered as a distribution day as the volume was lower compared with Friday. On the sectoral front, Nifty Pharma, Bank, Financial Services, Auto, and Media closed 0.5–1.5% lower. On the flip side, Nifty IT (+0.4%) and Metal (+0.9%) closed higher. Advance-decline ratio was in favor of decliners. Out of 2,283 stocks, 675 advanced, 1,274 declined, and the rest remained unchanged.
Market Status Overview
-Last week, one distribution day was added, taking the total count to four. Since last few days, Nifty was oscillating around its 21-DMA but breached it yesterday. However, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions.
-Looking ahead, we may downgrade the status to an Uptrend Under Pressure if Nifty slips further below its 21-DMA and/or the distribution day count increases to five. Further, we may downgrade the status to a Downtrend if Nifty breaches its 50-DMA, distribution day count remains elevated, and leading stocks break below key support levels. On the flip side, the confidence on uptrend will enhance if Nifty makes a move toward a new high or stages an additional follow-through day.
A bill to amend insurance act was introduced in the Rajya Sabha in order to pave way for increasing FDI limit in life and general insurance companies to 74% from existing 49%.
Mishra Dhatu Nigam declared a dividend of Rs 1.2 per share for FY21.
Bank Of Baroda announced a 10bps reduction in its repo-linked lending rate to 6.75% from 6.85%.
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, 34%; Rally Attempt, 8%; Uptrend Under Pressure, 58%; Downtrend, 0%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 58%; Rally Attempt, 4%; Uptrend Under Pressure, 38%; Downtrend, 0%.