At 8:00am IST, the SGX Nifty Futures was trading at 11,286, compared with Nifty’s close of 11,178 Friday.
Market status: Confirmed Uptrend
Global stock markets: Dow 30, +0.1%; S&P 500, -0.1%; Nasdaq, -0.2%; Nikkei, -0.6%; Hang Seng, +1.1%
Last week, Nifty traded in a narrow range for the first four trading sessions. On Friday, it was slightly volatile and fell 1.1% on volume higher than Thursday’s session. Friday’s action qualifies as a distribution day and hence the count increased to three. Increased distribution indicates weakness in the market. Today, Nifty found support at its 21-DMA after breaching it intraday.
On the sectoral front, the weekly action was mixed. Nifty Media (+4.8%) and Metal (+3.9%) were the leaders. On the flip side, Nifty Pvt Bank (-0.8%) and FMCG (-0.8%) were the major decliners. Nifty Midcap (+1.7%) and Smallcap (+2.0%) outperformed the major index.
The Indian market remains in a Confirmed Uptrend. We would like to see fresh names flexing their muscles for a sustainable rally. Finding favorable entries into powerful breakouts may be the best use for new money in the current market. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, wherein outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of the market and keep an open mind as to how it unfolds.
Multi Cmod.Ex.Of India will launch the first bullion index in India, Bulldex, on August 24. MCX iCOMDEX Bullion Index Futures contracts, expiring September, October, and November, will be available for trading effective August 24.
Icici Bank has completed the allotment of equity shares through QIP and raised close to Rs 15,000 crore. The Monetary Authority of Singapore picked up 4.6 crore shares for Rs 1,662 crore, ~11% of the QIP issue.
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, 50%; Rally Attempt, 12%; Uptrend Under Pressure, 38%; Downtrend, 0%.
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, 50%; Downtrend, 4%.