At 8:00am IST, the SGX Nifty Futures was trading at 11,485, compared with Nifty’s close of 11,505 on Friday.
Market status: Uptrend Under Pressure
Distribution Day Count: Six
Global stock markets: Dow 30, -0.9%; S&P, -1.1%; Nasdaq, -1.1%; Nikkei, +0.2%; Hang Seng, -0.5%; KOSPI, +0.02%
During the last week, Nifty moved in a relatively narrow range compared with the previous weeks. Through the week, it traded near its 21-DMA. On Friday, Nifty opened on a positive note and traded in positive territory for most of the session. After 2pm, sharp selling in financial stocks dragged the market to negative territory. It lost around 140 points in a span of 30 minutes. Later, some recovery was seen as Nifty pared most of its losses.
In the last week, the reaction on sectoral indices were mixed. Nifty Pharma (+8.9%) was the biggest advancer, followed by Nifty IT (+6.4%), and Realty (+5.5%). On the flipside, Nifty Financial (-4.5%) and PSU Bank (-3.9%) were the major decliners.
As the market condition is in an Uptrend Under Pressure, investors should proceed with caution. Unless a stock shows exceptional fundamental and technical strength, no new addition to the portfolio is advised. Investors should consider booking profits in stocks that have performed well and advanced 20–25% from their ideal buy points. Looking forward, we will change the status to a Downtrend, if more distribution days are added or if Nifty breaches its 50- and 200-DMA. On the flip side, the status will be back to a Confirmed Uptrend if Nifty retakes the 11,795 level (high during the recent rally).
Rites announced the buyback of shares up to Rs 257 crore at a share price of Rs 265, which is around 4% premium to the current market price. It has fixed September 30 as the record date.
Total liabilities of the Indian government increased to Rs 101.3T at the end of Q1 FY21, from Rs 94.6T at the end of March quarter.
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, 34%; Rally Attempt, 8%; Uptrend Under Pressure, 54%; Downtrend, 4%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 34%; Rally Attempt, 8%; Uptrend Under Pressure, 58%; Downtrend, 0%.