SGX Nifty Indicates Positive Opening; Muthoot Finance to Report Today

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 11,436, compared with Nifty’s close of 11,385 yesterday.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, -0.2%; S&P 500, +0.2%; Nasdaq, +0.7%; Nikkei, +0.2%; Hang Seng, +0.1%; KOSPI, +0.7%

Yesterday, Nifty started the session on a flat note and traded in positive territory throughout the session. Good buying was seen post noon, which helped the index hit a high in the recent rally. However, volume was comparatively lower across the board. Barring Nifty Pharma (-0.1%), all the sectoral indices closed in the green. Nifty Realty led the rally with a gain of 4.0%, followed by Nifty Media (+2.2%) and Bank (+2.2%). Market breadth was skewed toward advancers. Of 2,184 stocks traded, 1,294 advanced, 518 declined, and the remaining traded flat. FIIs’ net buying was at Rs 1,135 crore, while DIIs’ net selling was Rs 379 crore. Nifty is trading 1.7% and 6.0% above its rising 21- and 50-DMA, respectively.

The Indian market remains in a Confirmed Uptrend. 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. 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.

Key News

Muthoot Finance will report its Q1 FY21 results today.

Dilip Buildcon receives a letter of acceptance for a project worth Rs 1,344 crore.

Idbi Bank received shareholders’ approval to raise up to Rs 11,000 crore by issuing shares through various modes.

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%.

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