Market status: Uptrend Under Pressure
Distribution days: Six
Global stock markets: Dow30, +0.1%; S&P 500, +0.2%; Nasdaq, -0.1%; Nikkei, -0.4%; Kospi, +0.1%
Yesterday, Nifty opened 100 points higher and reclaimed its 21- and 50-DMA. The volume was relatively higher but below average. Nifty made an intraday high of 14,880 but closed 60 points off highs. On the sectoral front, all indices closed in the green. Nifty Bank, Financial Services, Auto, and IT closed 1.0–1.5% higher. Broader market outperformed the benchmark indices. The RBI’s MPC unanimously decided to keep the repo rate unchanged at 4%. It continued to maintain its accommodative stance as long as necessary to revive growth. FIIs net bought shares worth Rs 227 crore, while DIIs net bought shares worth Rs 381 crore.
Yesterday, Nifty reclaimed its 21- and 50-DMA, and managed to close above it. However, the distribution day
count remains high (six), with one expiring today. If Nifty remains above moving averages and advances from there, focus on quality ideas, ideally from leading and/or improving sectors and groups that are emerging from constructive consolidation. Avoid or reduce risk in lagging ideas, trading below major moving averages. On the flip side, we will change the status to a Downtrend, if Nifty breaches its 50-DMA and if market leaders show signs of deterioration in their price actions.
Key News
Muthoot Finance plans to raise Rs 1,700 crore through public issue of secured redeemable non-convertible debentures. The issue opens on April 8.
Hindustan Copper (Nse) opened its QIP issue for subscription on April 7. The floor price has been fixed at Rs 125.79 per equity share.
Prakash Industries achieved the highest-ever sales of around 2,72,142 tonnes of steel in Q4 FY21. Sales grew 8.85% q/q and 31.16% y/y.
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, 65%; Rally Attempt, 10%; Uptrend Under Pressure, 25%; Downtrend, 0%.
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