SGX Nifty Indicates Muted Opening; LIC Housing Finance to Raise Funds from LIC

At 8:00 am IST, SGX Nifty Futures was trading at 15,843, compared with Nifty’s close of 15,869 yesterday.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Two

Global stock markets: Dow30, -0.3%; S&P 500, -0.2%; Nasdaq, -0.7%; Kospi, +0.6%; Nikkei, -0.3%; Shanghai Composite, -0.3%

Yesterday, Nifty opened gap up and traded sideways in a narrow range throughout the session. It made a new all-time high of 15,901.6. Volume was on the lower side. On the sectoral front, barring Nifty Metal (-0.1%) and Pharma (-0.9%), all other major indices closed higher. Nifty Bank, FMCG, IT, and Realty closed 0.2–1.0% higher. Asian Paints, Axis Bank, and HDFC Life were the top Nifty50 gainers. Nifty is trading 2.5% and 5.7% above its 21- and 50-DMA. FIIs were net buyers at Rs 634 crore while DIIs were net sellers at Rs 650 crore.

Nifty trading at its all-time high, low distribution day count, and broader market outperformance are positive signs and indicate further upside. One distribution day is set to expire today. However, if the index falls, adds distribution days, 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.

Key News:

For May, the trade deficit was at $6.28B compared to $3.15B y/y and $15.1B in April. In May, engineering goods exports were at $8.65B compared to $7.96B in April.

Lic Housing Finance ’s Q4 FY21 PAT was down 5% y/y to Rs 398.92 crore. It was lower mainly due to higher provisioning for bad loans. The company will raise funds via preferential issue to promoters. LIC’s stake will increase to 45.24% post fund infusion.

Jet fuel price increased by Rs 1,790/KL to Rs 65,908/KL.
Buy Watchlist: Nippon Life India Asset Management, Bajaj Finance, Sbi Cards And Payment Services, Page Industries, State Bank Of India, Ambuja Cements, Eveready Inds.(India), Varun Beverages, Colgate-Palmolive India, Sharda Cropchem, Berger Paints India, Icici Bank, Cholamandalam Inv.& Fin., Tata Power, Ratnamani Metals & Tubes, Minda Industries, and Apollo Hosps.Enterprise.

Sell Watchlist: Advanced Enzyme Techs.