Market status: Confirmed Uptrend

Distribution days: Three

Global stock markets: Dow 30, +0.8%; S&P 500, +1.4%; Nasdaq, +2%; Nikkei, +0.8%; Hang Seng, +0.1%; Kospi, +0.7%

Yesterday, Nifty opened in the green and extended its gains as the day wore on, hitting a new all-time high. However, last hour selling pushed Nifty about 50 points off highs. Overall, volume was higher compared with the previous session. On the sectoral front, Nifty Auto, IT, and PSU Bank closed ~2% higher. Nifty Financial Services, Pharma, Realty, and FMCG closed almost flat.

With leadership broadening and indices above relevant intermediate-term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial as rising in distribution days can halt the uptrend.

Key News

Asian Paints, Aavas Financiers , and Sbi Cards And Payment Services will report their Q3 earnings today.

Havell's India posted Q3 FY21 earnings. PAT was up 74.5% y/y to Rs 350.1 crore, while revenue rose 39.7% y/y to Rs 3,175.2 crore. The results beat consensus.

Bajaj Finance posted Q3 FY21 earnings. Consolidated PAT was down 29% y/y to Rs 1,146 crore, while revenue fell 5.3% y/y to Rs 4,296 crore.

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, 84%; Rally Attempt, 4%; Uptrend Under Pressure, 12%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 66%; Rally Attempt, 0%; Uptrend Under Pressure, 34%; Downtrend, 0%.

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