At 8:00am IST, the SGX Nifty Futures was trading at 11,437, compared with Nifty’s close of 11,449 yesterday.
Market status: Uptrend Under Pressure
Global stock markets: Dow 30,-1.5%; S&P,-1.8%;Nasdaq,-2.1%;Nikkei, +0.3%; Hang Seng, +0.4%; KOSPI, -0.5%
Yesterday, Nifty gapped higher this morning and remained in positive momentum throughout the session. Volume was lower, compared with the previous session. Nifty reclaimed its 21-DMA and closed 0.5% above it. Gains in Nifty were concentrated among Reliance Industries (+7%), Bharat Petroleum (+6%), and Asian Paints (+4%). Nifty Midcap and Smallcap closed 1.2% and 1.7% higher, respectively.
On the sectoral front, Nifty Metal closed 1.1% lower, while Nifty Pharma closed flat. All other sectoral indices closed in the green. Nifty Bank, Auto, Financial Services, Realty, FMCG, and IT closed 0.5–1.0% higher.
The market status was recently changed to an Uptrend Under Pressure. We will be slightly cautious while initiating fresh long positions. We will change the status to a Downtrend if two or three more distribution days are added or if Nifty breaches its 50-DMA and 200-DMA. On the flip side, the status will be shifted back to a Confirmed Uptrend if Nifty retakes the 11,795 level (high made during the recent rally).
Indian Railway Catering And Tourism Corp, Bharat Heavy Electricals Ltd, and Bf Utilities will report their Q1 FY21 results today.
Hindustan Aeronautics reported Q1 FY21 results yesterday. Revenue from operations was down 47.2% y/y to Rs 1,736.7 crore. It reported a profit of Rs 148.7 crore, compared with a profit of Rs 564.7 crore in Q1 FY20.
Srg Housing Finance reported Q1 FY21 results yesterday. Revenue from operations was down 3.1% y/y to Rs 15.8 crore. It reported a profit of Rs 3.5 crore, compared with a profit of Rs 4.2 crore in Q1 FY20.
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, 8%; Uptrend Under Pressure, 30%; Downtrend, 8%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 17%; Rally Attempt, 0%; Uptrend Under Pressure, 70%; Downtrend, 13%.