At 8:00am IST, the SGX Nifty Futures was trading at 11,765, compared with Nifty’s close of 11,680 yesterday.
Market status: Rally Attempt
Global stock markets: Dow 30, -0.1%; S&P, -0.2%; Nasdaq, -0.7%; Nikkei, +0.1%; Hang Seng, +0.8%
Yesterday, Nifty quickly witnessed selling pressure after opening above 12,000. Massive profit booking was seen across the sectors. Nifty lost almost 300 points following a record 10 days of gains. Volume was higher than the previous session. In the broader market, both the Nifty Midcap and Smallcap were down 1.7% each.
On the sectoral front, all the sectoral indices closed in the red. Nifty Bank (-3.4%) declined the most, followed by other financial related stocks. Barring Nifty Metal (-0.5%), all the sectoral indices declined more than 1%.
Looking forward, we would prefer to see a follow-through day before shifting the market to a Confirmed Uptrend. (A follow-through day is a solid up session, generally a 1.5% or higher gain, with volume being higher than the previous day). Should this occur, the focus will be on ideas that show the best relative strength with good accumulation. Stocks that recover the quickest tend to lead the next run. On the flip side, if Nifty breaches its recent low of 10,790, the market will be moved back to a Downtrend.
Mindtree (Nse) reported Q2 FY21 results. Net profit advanced 19% q/q to Rs 253.7 crore. Revenue stood at Rs 1,926 crore as against Rs 1,909 crore in Q1 FY21.
Creditaccess Grameen Ltd announced the issue of non-convertible debentures (NCDs) worth Rs 100 crore.
Cyient Ltd (Nse) reported Q2 FY21 results, which beats consensus. Profit jumped 3.1% q/q to Rs 83.9 crore as against Rs 81.4 crore in Q1 FY21, while revenue advanced 1.2% q/q to Rs 1,003.3 crore from Rs 991.7 crore on a q/q basis.
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, 15%; Rally Attempt, 10%; Uptrend Under Pressure, 50%; Downtrend, 25%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 20%; Rally Attempt, 5%; Uptrend Under Pressure, 65%; Downtrend, 10%.