Market status: Uptend Under Pressure
Distribution days: Six
Global stock markets: Dow30, -0.9%; S&P 500, -0.8%; Nasdaq, -1.1%; Nikkei, -1.7%; Hang Seng, -1.7%; Kospi, -0.3%
Yesterday, the markets were volatile throughout the day. After opening higher, Nifty continued its momentum for the initial two hours. However, in the next one hour, it erased all the initial gains to trade toward the day's low of 14,707. During the second half of the session, Nifty witnessed some buying interest and closed with decent gains. In the process, the index reclaimed its 50-DMA. Volume was higher as against the previous session.In the broader market, Nifty Midcap continued to outperform with a gain of 0.9%, while Smallcap closed 0.4% higher.
On the sectoral front, the majority of sectors were in the green. Financial stocks staged a reversal. Nifty PSU Bank, Nifty Pvt Bank, and Nifty Bank were the top gainers, closing 1.7–3.0% higher. On the flip side, Nifty Metal and Nifty FMCG were down 0.7% and 0.4%, respectively. The advance-decline ratio was in favor of advancers. Of 2,285 stocks traded, 1,115 advanced, 776 declined, and the rest remained unchanged.
Thursday, we downgraded the market status to an Uptend Under Pressure as the distribution day count increased, Nifty breached its 21-DMA on last Monday, and briefly undercut its 50-DMA on Thursday. Currently, the distribution day count stands at six. We will change the status to a Downtrend, if one more distribution day is added or if Nifty fails to reclaim its 50-DMA and market leaders show signs of deterioration in their price actions.
Bharti Airtel will acquire an additional 3.3% stake in a special purpose vehicle Avaada MHBuldhana. It has earlier acquired 5.2% stake in Avaada MHBuldhana for Rs 4.55 crore in an all-cash deal.
Glenmark Pharms. (Nse) to receive a $40M loan from International Finance Corporation to increase the availability of affordable, quality medicines in India as well as in other countries, including treatment for the pandemic. The loan is under the World Bank’s $8B fast-track COVID-19 facility.
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, 30%; Rally Attempt, 8%; Uptend Under Pressure, 50%; Downtrend, 12%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 56%; Rally Attempt, 4%; Uptend Under Pressure, 40%; Downtrend, 0%.