At 8:00am IST, the SGX Nifty Futures was trading at 11,034, compared with Nifty’s Friday close of 11,074.
Market status: Confirmed Uptrend
Global stock markets: Dow 30, +0.4%; S&P 500, +0.8%; Nasdaq, +1.5%; KOSPI, -0.1%; Nikkei, +2%; Hang Seng, -1%
Last week, Nifty broke its six-week winning streak and closed in negative territory in four out of the five sessions. It added one distribution day during the week, taking the count to two. The trend of Nifty opening higher and slipping in the red to close in the lower half during the week was a red flag. On the flip side, only one distribution day was added, and an additional follow-through day was observed on Wednesday. Nifty traded in the range of 11,090–11,340 and above its key moving averages.
On the weekly front, there was mixed action among sectoral indices. The gainers gained big. Nifty Pharma and IT closed 9.0% and 4.5% higher. On the flip side, Nifty Bank, Financial Services, Energy, and Media closed 4–5% lower.
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.
UPL released Q1 FY21 results. The company’s revenue was down 0.9% y/y to Rs 7,833 crore. PAT was up 93.3% y/y to Rs 551 crore. Margin advanced 510bps to 21.8%.
Tata Motors released Q1 FY21 results. The company reported a loss of Rs 8,434 crore, while revenue was down 48% y/y to Rs 31,983 crore. EBITDA was down 76.1% y/y to Rs 682 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%.