SGX Nifty Indicates Higher Opening; BHEL Wins an Order Worth Rs 10,800 Crore

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 14,927, compared with Nifty’s close of 14,721 yesterday.

Market status: Uptend Under Pressure

Distribution days: Five

Global stock markets: Dow30, +0.6%; S&P 500, +0.3%; Nasdaq, +0.4%; Nikkei, +1.6%; Hang Seng, +1.2%; Kospi, +1.3%

Yesterday, Nifty started the session on a slightly positive note and traded sideways with volatility in the first half of the trading session. Post noon, the trend reversed as it breached its day’s low. It breached its 50-DMA (14,728) for the first time since January 29. The session qualified as a distribution day as the volume was higher compared with the previous session. The broader market underperformed benchmark indices. Nifty Midcap and Smallcap closed 2.5% and 2.2% lower, respectively. The advance-decline ratio was in favor of decliners. Of 2,234 stocks traded, 377 advanced, 1,537 declined, and the rest remained unchanged. All the sectoral indices closed lower. Nifty PSU Bank (-3.8%) declined the most followed by Media (-2.98%) and Realty (-2.96%).

We downgraded the market status to an Uptend Under Pressure yesterday. Nifty continues to remain under selling pressure for four consecutive sessions with a breach of its 21-DMA on Monday and briefly undercutting its 50-DMA yesterday. Currently, the distribution day count stands at five.

We will change the status to a [Downtrend], if more distribution days are added or if Nifty fails to reclaim its 50-DMA and market leaders show signs of deterioration in their price actions. On the flip side, the status will be back to a Confirmed Uptrend if Nifty retakes 15,431 level (high during the recent rally).

Key News

Bharat Heavy Electricals Ltd emerged as the lowest bidder for Rs 10,800 crore fleet mode tender floated by Nuclear Power Corporation of India (NPCIL) for the 6x700 MW Turbine Island package projects.

Dlf (Nse) plans to raise up to Rs 500 crore by issuing NCDs.

HFCL has bagged an order worth Rs 221.16 crore from Uttar Pradesh Metro Rail Corporation.

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, 38%; [Rally Attempt], 4%; Uptend 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%; Uptend Under Pressure, 36%; [Downtrend], 0%.