U.S. Markets Close Higher; Bajaj Finance, HDFC AMC, and Havells India to Report Earnings Today

Market Preview
At 8:00am IST, the SGX Nifty Futures was trading at 14,516, compared with Nifty’s close of 14,521 yesterday.
Market status: Confirmed Uptrend
Distribution days: Three
Global stock markets: Dow 30, +0.4%; S&P 500, +0.8%; Nasdaq, +1.5%; Nikkei, -0.3%; Hang Seng, +1%; Kospi, +0.6%

Yesterday, Nifty gapped higher and continued its momentum through the session to close near day’s high and above 14,500. Markets staged an upside reversal yesterday. However, one should not miss to note that volume was low yesterday. Though Nifty closed 1.7% higher, volume was lowest compared with the last nine sessions. We did not mark yesterday’s session as an additional follow-through day. On the sectoral front, Nifty Metal (+4.2%) was the top gainer. Nifty Bank, Auto, Financial Services, and Metal closed 1.5–3.0% higher.

With leadership broadening and indices above relevant intermediate term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial as rise in distribution days can halt the uptrend.

Key News

Bajaj Finance, Hdfc Asset Mgmt, and Havell's India will report their Q3 earnings today.

Icici Lombard General Ins Co posted Q3 FY21 earnings. PAT was up 6.6% y/y to Rs 313.5 crore, while total income rose 9.3% y/y to Rs 3,059 crore. Premium income increased to Rs 2,611.4 crore from Rs 2,456.2 crore on a y/y basis.

Tata Communications(Nse) posted Q3 FY21 earnings. Consolidated PAT was down 19.6% q/q to Rs 309.4 crore, while revenue fell 4.1% q/q to Rs 4,222.8 crore.

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, 84%; Rally Attempt, 4%; Uptrend Under Pressure, 12%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 66%; Rally Attempt, 0%; Uptrend Under Pressure, 34%; Downtrend, 0%.