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

Posted Date: April 19 2021
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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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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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