SGX Nifty Indicates Muted Opening; FIIs’ Continues Buying Spree

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 12,884, compared with Nifty’s close of 12,874, yesterday.

Market status: Confirmed Uptrend

Distribution Day: Zero

Global stock markets: Dow 30, -0.6%; S&P, -0.5%; Nasdaq, -0.2%; Nikkei, -0.7%; Kospi, +0.1%; Hang Seng, +0.2%

Yesterday, Nifty gapped up more than 150 points. However, it quickly succumbed to selling pressure and gave up most of its opening gains. During the day, it stabilized at about 12,850. Currently, it is trading 9.4% and 20.0% above its 50- and 200-DMA, respectively. On the sectoral front, mixed reactions were observed. Nifty Metal (+2.5%) advanced the most, followed by Nifty PSU Bank (+2.2%) and other finance-related sectors. Market breadth remained in favor of advancers. FIIs’ net buying was Rs 4,905 crore, while DIIs’ net selling was Rs 3,829 crore.

Currently, we are in a Confirmed Uptrend and are open to adding new positions coming out of proper base formations. We will look for leadership among some good stocks to push the market up. On the flip side, tracking distribution days is crucial. An accumulation of distribution days can halt the uptrend.

Key News

Lakshmi Vilas Bank (Nse): The government has decided to place the bank under moratorium till December 16, based on an application made by the Reserve Bank of India.

Dlf (Nse) is recognized as an index component of the Dow Jones Sustainability Indices (DJSI) in the Emerging markets category.

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, 72%; Rally Attempt, 8%; Uptrend Under Pressure, 20%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 88%; Rally Attempt, 0%; Uptrend Under Pressure, 12%; Downtrend, 0%.