At 8:00am IST, the SGX Nifty Futures was trading at 11,538, compared with Nifty’s close of 11,516 yesterday.
Market status: Uptrend Under Pressure
Distribution Day Count: Seven
Global stock markets: Dow 30, -0.5%; S&P, -0.8%; Nasdaq, -1.3%; Nikkei, +0.02%; Hang Seng, +0.2%; KOSPI, +0.1%
Nifty, after a gap-down opening yesterday, tried to fill the gap in the initial hours and traded toward 11,587. However, the index staged a reversal with intensifying selling pressure and closed near the day's low holding decent loss. Though the index fell more than 0.2%, it escaped a distribution day as volume was slightly lower compared with the previous session. The broader market behaves in sync with the major indices. Nifty Midcap was down 0.3%, while Smallcap closed 0.5% lower.
On the sectoral front, the majority of sectors closed in the red. Nifty Realty (-1.7%) staged a sharp reversal and declined the most, followed by Nifty Metal and Nifty PSU Bank, which were down 1.4% and 1.2%, respectively. On the flip side, Nifty Pharma (+0.4%) extended the gain, while Nifty IT and Nifty Media added 0.2% and 0.4%, respectively. The advance-decline ratio was skewed toward decliners. Of 2,198 stocks traded, 690 advanced, 1,132 declined, and the rest remained unchanged.
As the market condition is in an Uptrend Under Pressure, investors should proceed with caution. Unless a stock shows exceptional fundamental and technical strength, no new addition to the portfolio is advised. Investors should consider booking profits in stocks that have performed well and advanced 20–25% from their ideal buy points. Looking forward, we will change the status to a Downtrend, if more distribution days are added or if Nifty breaches its 50-DMA and 200-DMA. On the flip side, the status will be back to a Confirmed Uptrend if Nifty retakes the 11,795 level (high during the recent rally).
Dr. Reddy's Laboratories settled a patent litigation with Celgene for Revlimid , which allows the company to sell Lenalidomide in the U.S. post March 2022.
Sterling And Wilson Solar received an order of 106.71MW worth $62.6M (~Rs 462 crore) in Chile. The work is expected to commence in Q4 FY21.
For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 34%; Rally Attempt, 4%; Uptrend Under Pressure, 54%; Downtrend, 8%.
For the 24 developed 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%.