Market status: Confirmed Uptrend
Distribution days: Four
Global stock markets: Dow30, -0.5%; S&P 500, -0.8%; Nasdaq, -1.7; Kospi, +0.2%; Hang Seng, +1.4%; Nikkei, +0.3%
Yesterday, after opening more than 100 points higher, Nifty quickly pared its gains to turn negative for the session. It then traded in a narrow range before closing the session near its day’s high. Volume was lower than the previous session. In the broader market, both Midcap and Smallcap outperformed to close with a gain of 1.7% and 1.2%, respectively. Barring Nifty PSU Bank (-0.2%), all the sectoral indices closed in the green. Nifty Auto (+3.2%) advanced the most, followed by Nifty IT (+3.0%).
Couple of distribution days will expire this week. A low distribution day count and the market back above its 21-DMA is a constructive set up. 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 21-DMA on higher volume and the distribution day count increases.
Jaiprakash Pwr. (Nse) Vent. approved the disinvestment of 74% shareholding in the Jaypee Powergrid (a joint venture company of Powergrid Corporation of India and the company).
Ircon International Limited’s offer for sale is scheduled to open during March 3–4 as part of which the government will divest 10% equity stake in the company with an additional 6% as green shoe option.
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%.
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