Market status: Uptrend Under Pressure

Distribution days: Seven

Global stock markets: Dow30, +1.1%; S&P 500, +1.4%; Nasdaq, +1.7%; Nikkei, -0.8%; Kospi, -0.2%

Yesterday, Nifty had a muted opening but quickly succumbed to selling pressure. It made a day’s low of 14,459 i.e., down over 400 points from the previous session’s close. In the process, the index closed below its 21- and 50-DMA. However, post noon, the index saw some buying at lower levels to close in the upper half. The session qualified as a distribution day as it fell more than 0.2% on higher volume compared with the previous session. Barring Nifty IT (+1.9%) and Metal (+0.9%), all the sectoral indices closed in the red. Financial related stocks dragged the market as they closed with losses of 3–4%. FIIs net sold shares worth Rs 932 crore, while DIIs net bought shares worth Rs 75 crore.

Nifty breached its 21- and 50-DMA, after hovering around its key moving averages in the past few weeks. Index breaching its moving averages is a sign of weakness. We will change the status to a Downtrend if Nifty doesn’t retake its 50-DMA and if market leaders show signs of deterioration in their price actions.

Key News

Maruti Suzuki India reported production of 1,72,433 vehicles in March 2021, compared with 92,540 vehicles y/y.

Jindal Steel & Pwr.(Nse) has ended the fiscal year on a strong note with sales hitting a new record of 7,86,000 tonnes in March (up 61%y/y). For FY21, production of 7.51M tonnes (+19% y/y) was the highest ever annual production.

Ircon International Limited’s board of directors have approved the issuance of fully paid up bonus shares in the ratio of 1:1.

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, 30%; Rally Attempt, 12%; Uptrend Under Pressure, 52%; Downtrend, 6%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 52%; Rally Attempt, 4%; Uptrend Under Pressure, 40%; Downtrend, 4%.

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