At 8:00am IST, the SGX Nifty Futures was trading at 15,042, compared with Nifty’s close of 15,246 yesterday.
Market status: Confirmed Uptrend
Distribution days: Three
Global stock markets: Dow30, -0.4%; S&P 500, -1.3%; Nasdaq, -2.7; Kospi, -1.6%; Hang Seng, -2.5%; Nikkei, -1.8%
Yesterday, it was a unidirectional trading session as the market continued its positive momentum for the third consecutive session. Nifty retook its 21-DMA and is just 200 points (1.2%) below its all-time high of 15,431. Volume was lower than the previous session. In the broader market, both Midcap and Smallcap underperformed to close with a gain of 1.7% and 1.0%, respectively. Barring Nifty Auto (-0.7%), all the sectoral indices closed in the green. Nifty Metal (+3.3%) advanced the most, followed by Nifty PSU Bank (+3.2%).
Today, yesterday one distribution day (27/1/2021) expired due to aging, after which the total count decreased to three. Another distribution day is set to expire this Friday. The decrease in distribution day count is a good sign. However, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. We may downgrade the status to an Uptrend Under Pressure if Nifty falls below its 50-DMA on higher volume and the distribution day count increases.
Bajaj Electricals entered into an agreement with Mahindra Logistics for innovative logistics optimization and outsourcing arrangement.
Vst Tillers Tractors will invest $1.5M in Zimeno Inc.
Indian Railway Catering And Tourism Corp will operate trips through Golden Chariot from March 14.
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, 50%; Rally Attempt, 4%; Uptrend Under Pressure, 46%; Downtrend, 0%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 46%; Rally Attempt, 0%; Uptrend Under Pressure, 54%; Downtrend, 0%.