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SGX Nifty Indicates Negative Opening; Alkem Lab and Bata India to Report Today

August 07 2020
Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 11,183, compared with Nifty’s close of 11,200 yesterday.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, +0.7%; S&P 500, +0.6%; Nasdaq, +1.0%; KOSPI, +0.3%; Nikkei, -0.5%; Hang Seng, -1.7%

After a gap-up opening yesterday, Nifty moved sideways in the first half. In the second half, Nifty resumed positive momentum and made a high of 11,255. After a volatile move in the last two hours, Nifty closed 90bps higher. Volume was lower compared with yesterday’s session.

Nifty Midcap advanced more than 1.0%, while Smallcap closed 0.4% higher. Market breadth continues to remain skewed toward advancers. Of 2,161 stocks traded, 1,120 advanced, 703 declined, and the remaining traded flat. On the sectoral front, Nifty IT (+1.7%) led the gains. Nifty FMCG, Pharma, Financial Services, and Metal also closed 1.0–1.5% higher.

The Indian market remains in a Confirmed Uptrend. We would like to see fresh names flexing their muscles for a sustainable rally. Finding favorable entries into powerful breakouts may be the best use for new money in the current market. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, wherein outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of the market and keep an open mind as to how it unfolds.

Key News

Alkem LaboratoriesBata IndiaCiplaMahindra & Mahindra, and Mahanagar Gas will report their Q1 FY21 results today.

Lupin (Nse) announced Q1 FY21 results yesterday after market hours. Standalone revenue from operations decreased 8.3% y/y to Rs 2,695 crore. PAT declined 18.5% to Rs 363 crore.

Kei Industries released Q1 FY21 results yesterday after market hours. Standalone total income declined 30% y/y to Rs 753 crore. PAT decreased 21% to Rs 36 crore.

Pidilite Industries(Nse) released Q1 FY21 results yesterday after market hours. Standalone total income declined 56% y/y to Rs 792 crore. PAT was down 80% to Rs 56 crore.

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, 46%; Rally Attempt, 4%; Uptrend Under Pressure, 42%; Downtrend, 8%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 20%; Rally Attempt, 0%; Uptrend Under Pressure, 68%; Downtrend, 12%.

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