At 8:00am IST, the SGX Nifty Futures was trading at 11,222, compared with Nifty’s close of 11,322 yesterday.
Market status: Confirmed Uptrend
Global stock markets: Dow 30, -0.4%; S&P 500, -0.8%; Nasdaq, -1.7%; KOSPI, -0.2%; Nikkei, +0.4%; Hang Seng, -0.7%
Yesterday, Nifty made a gap-up opening, taking cues from global markets. However, as the session progressed, it traded sideways in a narrow range and closed near the day’s low holding meaningful gains. Volume was higher compared with Monday’s session. Nifty continues to close in the green for six consecutive sessions and is currently trading 2.4% above its rising 21-DMA. Broader markets took a breather today. Nifty Midcap was down 0.3%, while Smallcap closed 0.4% higher.
On the sectoral front, mixed results were observed. Nifty Media led the rally with a gain of 2% followed by Nifty Pvt Bank which was up 1.7%. On the flip side, Nifty Pharma staged a reversal and declined 1.4% whereas Nifty IT and Realty were down 0.6% each. Market breadth continues to remain skewed toward advancers. Of 2,179 stocks traded, 1,052 advanced, 798 declined, and the remaining traded flat.
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.
Eicher Motors (Nse): The company’s board approved a 1:10 split of its shares. Each existing equity share of face value of Rs 10 each is to be split into 10 equity shares of face value of Re 1 each. This split will facilitate a larger shareholder base and higher liquidity for the stock.
Central Bank Of India: The company released Q1 FY21 results yesterday after market hours. Consolidated total income increased 3.6% y/y to Rs 6,751 crore. PAT grew 21% to Rs 147 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, 12%; Uptrend Under Pressure, 42%; Downtrend, 0%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 32%; Rally Attempt, 0%; Uptrend Under Pressure, 64%; Downtrend, 4%.