At 8:00am IST, the SGX Nifty Futures was trading at 13,970, compared with Nifty’s close of 13,982 yesterday.
Market status: Confirmed Uptrend
Distribution days: Three
Global stock markets: Dow30, +0.7%; S&P 500, +0.6%; Nasdaq, +0.1%
Yesterday, Nifty opened about 20 points lower than the previous close. Though the index remained volatile through the day, it traded in a narrow range and closed flat. Volume was higher than the previous session. Broader markets posted outperformance as compared with the general market. Midcap closed 0.5% higher, while smallcap showed gains of 0.3% for the day. Nifty had hit 14,000 for the first time ever and gained 14.9% in 2020.
On the sectoral front, mixed reaction was observed. Nifty Realty extended its gain (+1.2%), while Nifty Media, Metal and Pharma were up in the range of 0.7-1.0%. On the flip side, Nifty PSU bank (-0.5%) and FMCG (-0.4%) were the top two decliners. Market breadth was skewed toward advancers. Of 2,229 stocks traded, 1,074 advanced, 790 declined, and the remaining were unchanged.
With leadership broadening and indices above relevant intermediate term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial as rise in distribution days can halt the uptrend.
Idbi Bank completed its 23% stake sale in IDBI Federal Life Insurance to Ageas for Rs 507.1 crore.
UPL’s promoter Jaidev Rajnikant Shroff bought GDR receipts equivalent to 0.1% of the company’s total share capital.
Jubilant Foodworks to acquire 10.76% stake in Barbeque-Nation Hospitality Ltd for Rs 92 crore. BNHL operates Barbeque Nation (BBQ), an Indian cuisine casual dining Brand.
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, 84%; Rally Attempt, 4%; Uptrend Under Pressure, 12%; Downtrend, 0%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 66%; Rally Attempt, 0%; Uptrend Under Pressure, 34%; Downtrend, 0%.