At 8:00am IST, the SGX Nifty Futures was trading at 11,378, compared with Nifty’s close of 11,312 yesterday.
Market status: Confirmed Uptrend
Global stock markets: Dow 30, +0.2%; S&P 500, +0.3%; Nasdaq, +1.1%; Nikkei, +0.3%; Hang Seng, +0.7%; KOSPI, +0.8%
Yesterday, after a gap down opening, Nifty traded in a narrow range throughout the session. Volume was on the higher side, compared with the previous session, so it qualified as a distribution day, taking the count to four. Further, the index found support at its 10-DMA (11,294) and closed briefly above it. Broader markets kept the momentum intact and outperformed the leading indices. The Nifty Midcap and Smallcap closed with gains of 0.8% and 0.6%, respectively.
FIIs’ net selling was at Rs 268 crore, while DIIs’ net selling was Rs 672 crore. Nifty is trading 0.9% and 4.7% above its rising 21- and 50-DMA, respectively. On the sectoral front, it was a mixed action. Nifty Media continues to lead the rally with a gain of 3%, followed by Nifty Metal, which advanced more than 1%. On the flip side, Nifty PVT Bank (-1.4%) and Nifty Bank (-1.4%) were the top two decliners. Market breadth was skewed toward advancers.
The Indian market remains in a Confirmed Uptrend. Despite the rise in the distribution day count on Nifty, we remain positive on the general market as the broader market is gaining strength. We would like to see fresh names flexing their muscles for a sustainable rally. We do think it is important to be selective in this environment and we would remain disciplined with entries, requiring a basing period before establishing fresh positions. We will continue to monitor the behavior of the market and keep an open mind as to how it unfolds.
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%.