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SGX Nifty Indicates Positive Opening; KKR to Acquire Controlling Stake in JB Chemicals

July 03 2020
Market Preview

At 8:00 am IST, the SGX Nifty Futures was trading at 10,595, compared with Nifty’s close of 10,551 yesterday.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, +0.4%; S&P 500, +0.5%; Nasdaq, +0.5%; KOSPI, +0.5%; Nikkei, +0.4%; Hang Seng, +0.6%; Shanghai Composite, +1.5%.

After a gap-up opening yesterday, Nifty kept the positive momentum intact and formed higher highs in the hourly chart to trade toward the day's high of 10,599. However, it witnessed minor profit booking in the last hour and closed near 10,550. Volume was slightly higher than the previous session. In the broader market, Nifty Midcap and Smallcap closed with a gain of 1.3% and 1.1%, respectively.

The Indian market remains in a Confirmed Uptrend. It is important that Nifty holds its 100-DMA (9,957). If Nifty adds distribution days and breaches logical support levels, we may downgrade the market status to an Uptrend Under Pressure. It is prudent to only invest in stocks that have strong fundamentals (i.e., good sales, earnings, margins, etc.) and that are breaking out of sound base structures on heavy volume. The beauty of our CAN SLIM method is that we need not "expect," "hope," or "wish for" with respect to market action. We will take what the market gives us and continue to monitor unfolding conditions.

Key News

Housing Development Fin. plans to raise Rs 1.25T in a year through NCDs and other hybrid instruments. The company will conduct its AGM on July 30 and will seek shareholders’ approval for the capital raise plan.

Jb Chemicals & Pha.(Nse): The global investment firm, KKR, is set to invest $500M to acquire about 54% stake in the company.

ArcelorMittal Nippon Steel India plans to invest Rs 5,000 crore to ramp up the capacity of its Hazira plant, which it acquired from Essar Steel in December 2019. It also has plans to invest Rs 20,000 crore for further expansion in the future.

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, 58%; Rally Attempt, 0%; Uptrend Under Pressure, 42%; Downtrend, 0%.

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, 80%; Downtrend, 0%.

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Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.For more information, see our Legal disclosures here.

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