At 8:00am IST, the SGX Nifty Futures was trading at 13,507, compared with Nifty’s close of 13,529 yesterday.
Market status: Confirmed Uptrend
Distribution days: Two
Global stock markets: Dow30, -0.4%; S&P500, -0.8%; Nasdaq, -1.9%; Nikkei, -0.4%; Kospi, -0.03%; Hang Seng, -0.3%
Yesterday, Nifty continued to make higher highs for the fifth consecutive session. After a gap-up opening, it traded higher and hit 13,500. Volume was lower as against Tuesday’s session. Broader markets underperformed as Midcap and Smallcap indices gained less than 0.5%. Nifty is trading 4% and 10% above its 21- and 50-DMA, respectively.
On the sectoral front, mixed action was seen. Nifty Private Bank and Realty rallied the most, followed by Nifty IT, FMCG, and Financial Services. On the flip side, Nifty PSU Bank and Metal took a breather, closing in the red.
We maintain a positive view of the overall market as indices trend into new highs with low distribution day count. Further, leadership remains widespread across multiple sectors. We continue to recommend a selective approach to increasing risk. Focus on high-quality ideas emerging from sound bases with an RS line at or near a new high. After a strong rally, pullback/consolidation (if any) is a constructive sign if Nifty holds its short-term moving averages. On the flip side, tracking distribution days is crucial. Accumulation of distribution days can be a sign of market top and halt the uptrend.
Yesterday, the FIIs bought equities worth Rs 3,564.2 crore, while the DIIs sold equities worth Rs 2,493 crore.
RBL Bank has signed a deal with ICICI Prudential life insurance to provide a range of life insurance products to its customers.
Mukand sold leasehold land in Thane, Maharashtra, worth Rs 679 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, 92%; Rally Attempt, 0%; Uptrend Under Pressure, 8%; Downtrend, 0%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 88%; Rally Attempt, 0%; Uptrend Under Pressure, 12%; Downtrend, 0%.