Market Pulse: Downtrend
Nifty50: Six Nifty Midcap100: Six Nifty Smallcap100: Seven
Global Stock Markets: Dow 30, -2.5%; Nasdaq, -2.2%; S&P 500, -2.3%; Nikkei, -0.2%; Kospi, -0.5%; Shanghai Composite, -0.2%.
Last week, Nifty started on a weaker note and declined 2% on Monday. It also added a distribution day and we downgraded the market status to an Uptrend Under Pressure. On Friday, Nifty gapped lower and selling pressure intensified as the day progressed. There were talks about uncertainty arising from the new COVID-19 variant found in Africa. In the last hour, Nifty breached 17,000 and managed to close briefly above it.
Nifty is trading below its 50- and 100-DMA and more than 8% off highs. During the week, barring Nifty Pharma (+2.3%), all sectoral indices closed lower. Nifty Auto (-8.4%) declined the most. Nifty Bank, Financial, FMCG, and IT closed 3–5% lower.
On Friday, we changed the market status to a Downtrend as the distribution day count increased to six. Stocks continued to take on technical damage with many moving deeper into their respective bases and breaking below logical support levels. Markets are currently not conducive for holding stocks below their 50- and 200-DMA. Looking forward, we will shift the market to a Rally Attempt if Nifty establishes a bottom and stays above today’s low (16,985) for three straight sessions. From there, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend.
Vedanta said its Sesa Goa iron ore business is looking to achieve carbon net neutrality by 2050.
Bank Of Baroda said it has raised Rs 1,997 crore by issuing Basel III compliant bonds. The bank had come out with a Rs 2,000 crore issue of additional tier-1 bonds on November 24.
Indian Energy Exchange shareholders approve issue of bonus shares and increase in authorized share capital.