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

April 19 2021

Market status: Rally Attempt

Global stock markets: Dow30, +0.5%; S&P 500, +0.4%; Nasdaq, +0.1%; Nikkei, +0.2%; Kospi, +0.4%

Last week, Nifty was highly volatile and pared most of its Monday losses in the next three sessions. On Friday, it opened on a flat note and rose over 120 points intraday. But in the last hour, it booked profits and closed below its 21-DMA. On a weekly basis, barring Nifty Pharma (+1.8%), all sectoral indices closed in the red. Nifty PSU Bank (-6.9%) declined the most, followed by Realty (-5.7%) and Media (-5.3%).

We changed the market status to a Rally Attempt as Tuesday was a blue rally day (Day 1), and Nifty managed to stay above its recent low for two consecutive sessions. From here, we would prefer to see a follow-through day before shifting the market to a Confirmed Uptrend. A follow-through day is a solid up session, generally with a 1.5% or higher gain, with volume higher than the previous day. Should this occur, the focus will be on ideas breaking out of early-stage base patterns and showing the best relative strength with good accumulation. On the flip side, Nifty is still below its 50-DMA. If it breaches its recent low of 14,248, the market will be moved back to a Downtrend.

Key News

Acc and Icici Prudential Life Insurance will declare Q4 FY21 results today.

Mindtree (Nse) declared its Q4 FY21 results. PAT fell 2.8% q/q to Rs 317.3 crore, while revenue grew 4.2% q/q to Rs 2,109.3 crore.

Den Networks declared its Q4 FY21 results. PAT grew 50% y/y to Rs 36.98 crore, while revenue declined 0.5% y/y to Rs 326.2 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, 30%; Rally Attempt, 12%; Uptend Under Pressure, 52%; Downtrend, 6%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 65%; Rally Attempt, 10%; Uptend Under Pressure, 25%; Downtrend, 0%.

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