At 8:00am IST, the SGX Nifty Futures was trading at 11,110, compared with Nifty’s close of 11,133 yesterday.
Market status: Confirmed Uptrend
Global stock markets: Dow 30, +0.6%; S&P 500, +0.6%; Nasdaq, +0.2%; KOSPI, -1%; Nikkei, -0.6%; Hang Seng, -0.02%
Yesterday, Nifty opened in positive territory for the sixth consecutive session. However, as the day progressed, selling pressure increased, and the index slipped into negative territory. The loss was more than our threshold to consider adding a distribution day; however, volume was modestly lower compared with Tuesday’s session. Hence, it was not considered a distribution day. Nifty is trading 10.3% and 2.5% above its 50- and 200-DMA, respectively.
On the sectoral front, Nifty Auto, IT, and Realty closed more than a percent lower, while Nifty Bank, Media, and Pharma closed 0.2–0.5% higher. FIIs’ net buying was Rs 1,666 crore, while DIIs’ net selling was Rs 1,139 crore.
The Indian market remains in a Confirmed Uptrend. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, and it is an environment where outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of leading stocks and keep an open mind as to how it unfolds. We will wait for solid entry points before buying.
Larsen & Toubro released Q1 FY21 results. PAT declined 79.4% y/y to Rs 303 crore, while revenue was down 28.3% y/y to Rs 21,260 crore. Margin fell 270bps to 7.6%.
ICICI Securities released Q1 FY21 results. PAT grew 70% y/y to Rs 193.1 crore, while revenue was up 41.3% y/y to Rs 546 crore. Broking income witnessed a surge of 62% y/y to Rs 355.7 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, 54%; Rally Attempt, 0%; Uptrend Under Pressure, 42%; Downtrend, 4%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 46%; Rally Attempt, 0%; Uptrend Under Pressure, 54%; Downtrend, 0%.