At 8:00am IST, the SGX Nifty Futures was trading at 11,494, compared with Nifty’s close of 11,464 on Friday.
Market status: Uptrend Under Pressure
Distribution Day Count: Six
Global stock markets: Dow 30, +0.5%; S&P, +0.05%; Nasdaq, -0.6%; Nikkei, +0.7%; Hang Seng, +0.6%; KOSPI, +1.3%
Nifty moved down toward its 50-DMA at the beginning of the last week. However, Thursday’s action helped Nifty reclaim its 21-DMA. On the weekly chart, it found support at its 10-WMA. On Friday, it moved in a relatively narrow range and volume was lesser than the 50-day average trading volume.
During the week, the sectoral indices reaction was mixed. Nifty Energy (+3.3%) was the biggest advancer due to the rally in Reliance Industries (+11.7%), which has over 36% weightage in the index, followed by Nifty IT (+3.1%), FMCG (+0.5%), and Pharma (+0.3%). On the flipside, Nifty Metal (-2.7%) and Pvt Bank (-2.4%) were the major decliners.
As the market condition is in an Uptrend Under Pressure, investors should proceed ahead with caution. Unless a stock shows exceptional fundamental and technical strength, no new addition to the portfolio is advised. Investors should consider booking profits in stocks that have performed well and advanced 20–25% from their ideal buy points. Looking forward, we will change the status to a Downtrend, if more distribution days are added or if Nifty breaches its 50-DMA and 200-DMA. On the flip side, the status will be back to a Confirmed Uptrend if Nifty retakes the 11,795 level (high during the recent rally).
Apollo Hosps.Enterprise, Steel Auth.Of Ida. (Nse), Nbcc (India), and Pvr will report their Q1 FY21 results today.
Gic Housing Finance reported Q1 FY21 results during the weekend. Revenue from operations was down 1.3% y/y to Rs 306 crore. It reported a loss of Rs 55 crore, compared with a profit of Rs 15 crore in Q1 FY20.
Indiabulls Rlst. (Nse) reported Q1 FY21 results during the weekend. Revenue from operations declined 94% y/y to Rs 47.8 crore. Other income increased 44% to Rs 47.2 crore. It reported a loss of Rs 94.5 crore, compared with a loss of Rs 119.6 crore in Q1 FY20.
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, 34%; Rally Attempt, 8%; Uptrend Under Pressure, 50%; Downtrend, 8%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 17%; Rally Attempt, 0%; Uptrend Under Pressure, 70%; Downtrend, 13%.