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SGX Nifty Indicates Positive Opening; NBCC, Future Consumer to Report Today

June 30 2020
Market Preview

At 8:00 am IST, the SGX Nifty Futures was trading at 10,325, compared with Nifty’s close of 10,312 yesterday.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, +2.3%; S&P 500, +1.5%; Nasdaq, +1.2%; KOSPI, +1.4%; Nikkei, +1.8%; Hang Seng, +0.9%; Shanghai Composite, +0.5%.

Nifty had a gap-down opening yesterday morning, taking cues from global markets. However, the dip was bought and the index rebounded more than 85 points from the day's low (10,223) and closed in the upper half of the day's range. Though the loss was more than 0.2%, Nifty escaped a distribution day as volume was lower compared with Friday's session.

On the other hand, if we see Nifty add more distribution days, breaching key moving averages, and begin to see leaders falter at support, we will likely shift the market status to an Uptrend Under Pressure.

The Indian market remains in a Confirmed Uptrend. It is important that Nifty holds its 100-DMA (9,990). 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

Future ConsumerNbcc (India)Goa Carbon, and Dish Tv India will report their Q4 results today.

Tata Steel reported Q4 FY20 results yesterday. Revenue from operations declined 20% y/y to Rs 33,770 crore. It reported a loss of Rs 1,095 crore compared with Rs 2,430 crore profit in the corresponding quarter last year.

Gic Housing Finance announced Q4 FY20 results. Its total income decreased 2.2% y/y to Rs 317 crore. PAT dipped 48% to Rs 26.4 crore.

Indian Bank plans to raise Rs 5,000 crore through Basel 3 compliant tier1 or tier 2 bonds to fund its business growth.

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, 62%; Rally Attempt, 0%; 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, 20%; Rally Attempt, 0%; Uptrend Under Pressure, 80%; Downtrend, 0%.

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