Global Markets Trade Higher; JLR Sales Increased 50% q/q in Quarter Ended September 30

Global stock markets: Dow 30, +1.7%; S&P, +1.8%; Nasdaq, +2.3%; Nikkei, +0.5%; Kospi, +0.6%; Hang Seng, +0.8%

Yesterday, Nifty gapped up and trended higher to make an intraday high of 11,578. As the day wore on, Nifty succumbed to selling pressure and quickly lost over 120 points and made an intraday low of 11,452. Buying was seen in the second half, which helped the index close above 11,500. On the sectoral front, the majority of sectoral indices advanced. Nifty IT (+3.5%) advanced the most, followed by Nifty Metal and Pharma, which closed 2.6% and 1.7% higher, respectively. On the flip side, Nifty Media (-0.2%), PSU Bank (-0.1%), and Auto (-0.1%) were the decliners. FIIs’ net buying was Rs 237 crore, while DIIs’ net selling was Rs 471 crore.

Looking forward, 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 a 1.5% or higher gain, with volume being higher than the previous day). Should this occur, the focus will be on ideas that show the best relative strength with good accumulation. Stocks that recover the quickest tend to lead the next run. On the flip side, if Nifty breaches its recent low of 10,790, the market will be moved back to a Downtrend.

Key News

Infibeam Avenues Ltd: The company entered into a definitive agreement with Jio Platforms and its affiliates.

Tata Motors: JLR retail sales was up 50% q/q to 1,13,569 vehicles in Q2 FY21, but down 11.9% y/y.

Sobha: In Q2 FY21, the company has achieved a total sales volume of 8,91,700 square feet, valued at Rs 6.90B, with a total average realization of Rs 7,737 per square feet.

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, 15%; Rally Attempt, 10%; Uptrend Under Pressure, 50%; Downtrend, 25%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 20%; Rally Attempt, 5%; Uptrend Under Pressure, 65%; Downtrend, 10%.

Buy Watchlist: Britannia Inds., Pi Industries, Coromandel International, Ultratech Cement, Ipca Laboratories (Nse), Dr Lal Pathlabs, Marico, Whirlpool Of India (Nse), Gujarat Gas, Dabur India, and Tata Consumer Products

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