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).
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%.