At 8:00am IST, the SGX Nifty Futures was trading at 10,949, compared with Nifty’s yesterday close of 10,891.
Market status: Confirmed Uptrend
Global stock markets: Dow 30, +0.9%; S&P 500, +0.7%; Nasdaq, +1.5%; KOSPI, +1.2%; Nikkei, +1.4%; Hang Seng, +0.6%
Yesterday, Nifty opened with a cut of 20 points. The selling pressure intensified as the day wore on and Nifty breached its 21-DMA (10,950). Yesterday was the fourth consecutive day when Nifty closed in the red and in the lower half of the day’s range. It added a distribution day as volume was higher compared with the previous session, taking the count to three.
The selling was concentrated among private banks, financial stocks, and RIL. Pharma stocks continued to outperform but closed off highs. The selling was not broad based. Nifty Midcap closed flat, while Smallcap closed 1% higher.
Nifty closed near its 200-DMA (10,856). We would like to see Nifty holding its 200-DMA. In case distribution day count increases and Nifty breaches its 200-DMA, we may downgrade the market status to an Uptrend Under Pressure.
Kec International received orders worth Rs 1,192 crore across its various businesses, including an order from Kochi Metro worth Rs 146 crore.
Kpit Technologies Limited released Q1 FY21 results yesterday after market hours. Consolidated revenue from operations declined 2.6% y/y to Rs 492.7 crore. PAT decreased 21.9% to Rs 24.2 crore.
Kansai Nerolac Paints released Q1 FY21 results yesterday. Consolidated revenue from operations declined sharply 58.6% y/y to Rs 638 crore due to the decreased economic activity during the quarter. PAT decreased 79.5% to Rs 29.6 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, 46%; Rally Attempt, 0%; Uptrend Under Pressure, 42%; Downtrend, 12%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 20%; Rally Attempt, 0%; Uptrend Under Pressure, 68%; Downtrend, 12%.