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SGX Nifty Indicates Muted Opening; Rare Enterprises to Invest in Syska LED

August 31 2021 | Reading Time: 2 minutes
At 8:15 am IST, SGX Nifty Futures were trading at 16,920, compared with Nifty’s close of 16,930 yesterday.

Market Pulse: 

Global stock markets: Dow 30, -0.2%; Nasdaq, +0.9%; S&P 500, +0.4%; Nikkei, -0.2%; Kospi, -0.4%; Shanghai Composite, -0.5%.

Yesterday, Nifty opened 70 points higher and continued to gain momentum throughout the session. The index made higher highs and higher lows on the hourly chart and closed the day holding significant gains. In the process, Nifty hit a fresh high. Volume was higher than in the previous session. The broader markets continue to outperform. Further, Midcap and Smallcap surged 1.9% and 1.5%, respectively. On the sectoral front, barring Nifty IT (-0.6%), all sectors gained for the day. Nifty Metal (+2.5%) led the gains, followed by Nifty Bank, Nifty PSU Bank, and Nifty Pvt Bank, which gained 2% each. Further, Nifty Auto, Nifty Realty and Nifty Fin Service were up in the range 1.6–1.9%.

The distribution day count now stands at three after one expired last week. Further, Nifty is now trading near its all-time high and is placed above all its key moving averages. We would like Nifty to continue this trend. On the flip side, if the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.

Key News

Acrysil announced its further expansion of production capacity by an additional 1,60,000 Quartz sinks per annum increasing the overall capacity to 1M sinks per annum. The proposed expansion will be through greenfield project at Bhavnagar in Gujarat.

Rare Enterprises led by Rakesh Jhunjhunwala and its partners have signed a aterm sheet to invest in Syska LED, which will help the company in its next phase of expansion.

What do you think? Please email us any questions or comments.

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