At 8:15 am IST, SGX Nifty Futures was trading at 15,740, compared with Nifty’s close of 15,691 yesterday.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Global stock markets: Dow30, -0.6%; S&P 500, -0.1%; Nasdaq, +0.8%; Kospi, +0.2%; Nikkei, +0.3%; Shanghai Composite, -0.3%

Yesterday, Nifty gapped down over 100 points. Within the first hour, it pared all of its losses and turned positive for a brief moment. But, due to weekly expiry, the session was highly volatile. From the day’s high, it lost about 150 points and made an intraday low of 15,616. In the last hour, there was a little recovery, which helped Nifty end near 15,700. It was a broad-based sell-off as broader market indices Nifty Midcap (-1.2%) and Smallcap (-0.5%) underperformed. On the sectoral front, barring Nifty FMCG (+0.1%) and IT (+0.6%), all sectoral indices closed lower. Nifty Metal (-2.3%) and Realty (-1.7%) declined the most followed by financial-related indices, which closed 1.1–1.5% lower. FIIs were net sellers at Rs 879 crore, while DIIs were net buyers at Rs 45 crore.

Yesterday’s action qualified as a distribution day as Nifty fell over 0.2% on volume higher than the previous session. It was the second consecutive session where Nifty added a distribution day, which signals weakness in the market. If the index falls, adds a distribution day, and breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Focus on quality ideas emerging out of sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels.

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Key News:

Power Grid Corp Of India ’s Q4 FY21 PAT grew 7% y/y to Rs 3,526 crore. Revenue grew to Rs 10,816.33 crore from Rs 10,507 crore in Q4 FY20. The board has recommended issue of bonus shares in the ratio of 3:1.

Nacto Pharma ’s Q4 FY21 results missed estimates on all fronts. PAT grew 43% y/y to Rs 53 crore. Revenue stood at Rs 360 crore compared to Rs 477 crore in Q4 FY20.

-The Dollar index is trading higher after the Fed brought forward its projections for rate hike in 2023. It is now around 92, compared to less than 90 at the start of the month.


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SGX Nifty Indicates Positive Opening; Dollar Index Trades Higher
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