Market status: Uptrend Under Pressure
Distribution days: Six
Global stock markets: Dow30, +0.2%; S&P 500, +0.4%; Nasdaq, +1%; Nikkei, +0.4%; Kospi, -0.3%
Yesterday, Nifty opened higher and remained in the green throughout the day. However, the index was highly volatile on account of weekly F&O expiry. At one point, Nifty was up over 1% but it quickly pared gains and ended just 0.4% higher. 62% of the Nifty50 stocks closed in the green led by steel and cement stocks. On the sectoral front, the majority of indices closed in the green. Nifty Metal (+3.9%) advanced the most followed by IT (+1.2%). Financial-related sectors continued to drag the market lower. FIIs net bought shares worth Rs 110 crore, while DIIs net bought shares worth Rs 552 crore.
On Wednesday, Nifty reclaimed its 21- and 50-DMA, and managed to close above it. 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
Zensar Technologies entered into a global strategic partnership with the U.S.-based Claimatic.
Ashok Leyland and Siemens entered into a MoU to build a co-operative technological partnership in the electric commercial mobility segment and execute eMobility projects in India.
Srei Infr.Fin. (Nse)’s Srei Equipment Finance receives expression of interest for up to $250M capital infusion from international PE funds.
INR came under pressure after RBI’s commitment to buy Rs 1T bonds from the secondary markets in Q1 FY22. INR slips to Rs 74.6 per USD.
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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