MarketsmithIndia Articles

SGX Nifty Indicates Positive Opening; U.S. Markets Close Higher


July 02 2021
At 8:15 am IST, SGX Nifty Futures was trading at 15,746, compared with Nifty’s close of 15,680 yesterday.

Market Pulse: Confirmed Uptrend

Distribution Day CountFour

Global stock markets: Dow30, +0.4%; S&P 500, +0.5%; Nasdaq,+0.1%; Kospi, +0.1%; Nikkei, +0.3%; Shanghai Composite, -1.3%

Yesterday, Nifty opened briefly in the green but failed to hold gains as the session progressed. After falling more than 50 points in the opening hour, it traded sideways in a narrow range. Volume was lower, so we did not consider it a distribution day.

On the sectoral front, Nifty Pharma (+1.1%) and Auto (+0.9%) were the top gainers. Nifty FMCG closed 40bps higher, while Media closed flat. On the flip side, Nifty Bank, Metal, Financial Services, IT, and Metal closed 0.2–0.6% lower.

The distribution day count is currently elevated to four. If the index falls further, adds a couple of distribution days, and breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Focus on quality ideas emerging out of sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels.

Key News

Cadila Healthcare: Zydus applied to the DCGI for EUA to launch ZyCoV-D, the world’s first Plasmid DNA vaccine for COVID-19.

RBI predicted 9.8-11.2% rise in  The gross non-performing asset (GNPA) ratio of banks in March 2022 under various stress scenarios due to the impact of the COVID pandemic

Titan Company appointed Ashok Kumar Sonthalia as CFO of the company.

Yesterday, our model portfolio stock Carborundum Universal broke out of a stage 2(b) flat base on above average volume. A fresh position can be initiated or pyramiding can be started on the stock at 627–659 level.

What do you think? Please email us any questions or comments.

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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