SGX Nifty Indicates Muted Opening; Bharti Airtel Adds Users while Jio and Vodafone Idea Lose Subscribers in September

At 8:15 am IST, SGX Nifty Futures were trading at 17,426, compared with Nifty’s close of 17,416, yesterday.

Market Pulse: Uptrend Under Pressure

Distribution Day Count:

Nifty50: Six Nifty Midcap100: Six Nifty Smallcap100: Seven

Global Stock Markets: Dow 30, +0.05%; Nasdaq, -1.3%; S&P 500, -0.3%; Nikkei, +0.1%; Kospi, -0.6%; Shanghai Composite, +0.3%.

Yesterday, Nifty opened 20 points higher but failed to hold gains and slumped more than 500 points from there. Last week, Nifty breached its 21- and 50-DMA. Yesterday’s action was marked as the sixth distribution day, and market status was downgraded to an Uptrend Under Pressure. Selling pressure was across the market. Nifty Midcap and Smallcap also breached their 50-DMA. Though markets recovered in the last hour, it was a tough day for market participants.

We will change the status to a Downtrend if more distribution days are added or if Nifty fails to reclaim the 50-DMA and market leaders show signs of deterioration in their price actions. On the flip side, the status will be changed back to a Confirmed Uptrend if Nifty retakes the 18,604 level (high during the recent rally). As the market condition has changed to an Uptrend Under Pressure, investors should proceed with caution. Stocks slipping below their 50- and 200-DMA on above average volume should be sold. Consider exiting stocks that have declined 8% from your buy price.

Key News

Dlf (Nse)’s rental arm DLF Cyber City Developers Ltd successfully raised Rs 1,000 crore by issuing secured and redeemable nonconvertible debentures on private placement basis. The NCDs have an annual fixed coupon rate of 6.7% maturing in September 2024, and will be listed on BSE’s wholesale debt market.

Bharti Airtel added 2.74 lakh subscribers in September. While Reliance Jio and Vodafone Idea lost 1.9 crore and 10.77 lakh users, respectively.