U.S. Markets Close Higher; NBCC Receives Order Worth Rs 758 Crore

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 14,232, compared with Nifty’s yesterday close of 14,200.

Market status: Confirmed Uptrend

Distribution days: Two

Global stock markets: Dow 30,+0.6%; S&P500,+0.7%; Nasdaq,+1%; Nikkei, -0.1%; Hang Seng, -0.3%; Kospi, +0.4%

Yesterday, Nifty opened on a negative note and made an intraday low of 14,048 within the first hour. As the session progressed, it advanced higher but was volatile throughout. Volume was higher than the previous session. The broader market outperformed slightly compared with the general market. Midcap closed 0.7% higher, while Smallcap was up 0.6%.

On the sectoral front, it was a mixed reaction. Nifty IT (+2.6%) advanced the most, followed by Nifty Pvt Bank, which was up 1.9%. On the flip side, Nifty Metal (-1.4%) declined the most, followed by Realty (-0.4%) and Auto (-0.02%).

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

Tips Industries received in-principal approval from the board to explore the demerger of the company’s film business into a separate entity.

Nbcc (India) received orders worth ~Rs 758 crore for the supply of high mobility vehicles from the Ministry of Defence.

Acc announced the commissioning of a new cement production facility at the company's existing Sindri Grinding Unit in Jharkhand.

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%.