U.S. Markets Close Higher; BPCL to Sell Entire Stake in Numaligarh Refinery

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 14,815, compared with Nifty’s close of 14,762 yesterday.

Market status: Confirmed Uptrend

Distribution days: Four

Global stock markets: Dow30, +2%; S&P 500, +2.4%; Nasdaq, +3%; Kospi, +1.5%; Hang Seng, -1%; Nikkei, -0.8%

Yesterday, Nifty opened over 150 points higher and hit the day’s high of 14,806. It traded in a narrow range consolidating gains amid volatility and closed the session holding decent returns. Volume was lower than the previous session. In the broader market, both Midcap and Smallcap outperformed to close with a gain of 1.8% and 2.1%, respectively. Barring Nifty PSU Bank (-0.4%), all the sectoral indices closed in the green. Nifty Media (+4.3%) advanced the most, followed by Nifty Auto and Nifty Metal, which advanced 2.4% and 1.9%, respectively, for the day.

A low distribution day count and the market back above its 21-DMA is a constructive set up. However, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. We may downgrade the status to an Uptrend Under Pressure if Nifty falls below its 21-DMA on higher volume and the distribution day count increases.

Key News

Bharat Petroleum board approved the sale of its entire stake in Numaligarh Refinery for Rs 9,875 crore.

UPL signed a long-term pact with FMC Corporation for Rynaxypyr active ingredients.

Indian Oil posted an increase of sales in February to 5.05 lakh units as against 4.98 lakh units for the same period last year.

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, 4%; Uptrend Under Pressure, 46%; 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, 54%; Downtrend, 0%.