At 8:00 am IST, the SGX Nifty Futures was trading at 10,097, compared with Nifty’s close of 10,116 yesterday.
Market status: Confirmed Uptrend
Global stock markets: Dow 30, -1%; S&P 500, -0.5%; Nasdaq, +0.7%; KOSPI, -0.1%; Nikkei, -1.3%; Hang Seng, -0.4%; Shanghai Composite, -0.1%.
Yesterday, Nifty opened on a positive note and was volatile throughout the session. There was no clear trend in the market. Yesterday’s gains were mostly due to a sharp surge in the last hour and volume came in slightly lower compared with Tuesday's session. On the sectoral front, it was a mixed reaction. Nifty PSU Bank (+3.5%) and Pvt Bank (+2.1%) were the major advancers. On the flip side, Nifty Auto (-1.1%) and Metal (-0.6%) declined the most.
Historically, 100-DMA has been a crucial level to watch for Nifty. The confidence in the current rally will build up if Nifty is able to retake its 100-DMA. In addition, Nifty’s 50-DMA started to turn upward and the broader market participation in the rally is a good sign. We remain in a Confirmed Uptrend and are open to increasing risk selectively in quality names coming out of proper bases.
At the beginning of the move in the general market, there are usually a few stocks that have already completed bases and are breaking out. Often, these early leaders will cluster into groups that may represent where the most institutional appetite exists. Ideally, this is where we try to "buy right." There are a few things that work to our favor when we do this. One is that these primary leaders usually have bigger upside moves and will lead throughout a cycle. A second is that the cushion we gain as the trend progresses allows us to truly capitalize on the move. O'Neil has said that if you can get through the first correction you are in the driver's seat. That cushion from "buying right" allows for a clear head when determining if normal volatility is a threat to your position or not.
The U.S. Federal Reserve decided to hold benchmark short-term rates near zero. It expects GDP to decline 6.5% in 2020 but stage a reversal with 5% gain in 2021.
Shriram Tran.Fin. reported Q4 FY20 results. Revenue stood at Rs 4,168.4 crore as against Rs 3,873 crore for the same period year ago, while profit was down 70% y/y to Rs 224.35 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, 88%; Rally Attempt, 0%; 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, 92%; Rally Attempt, 0%; Uptrend Under Pressure, 8%; Downtrend, 0%.