At 8:00 am IST, the SGX Nifty Futures was trading at 14,643, compared with Nifty’s Friday close of 14,835.
Market status:Uptend Under Pressure
Distribution days: Six
Global stock markets: Dow30, +0.9%; S&P 500, +0.8%; Nasdaq, +0.5%; Nikkei, -0.5%; Kospi, +0.02%
On Friday, Nifty’s session was rangebound compared with its previous sessions, but the index closed above the 50-DMA after breaching it intraday. Volume was slightly lower than the previous session. The index was trading close to its 50-DMA throughout the week. It breached its 50-DMA on Monday and retook on Wednesday. Last week, the sectoral reaction was mixed. Nifty Metal (+6.6%) advanced the most, followed by IT (+5.3%) and Pharma (+5.0%). Financial indices declined the most.
The index is currently hovering around its key moving averages. From here, we would like the index to firmly trade above its key moving averages. 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 one more distribution day is added or if Nifty makes a decisive breach of its key moving averages and if market leaders show signs of deterioration in their price actions.
Key News
Tata Consultancy Svs. will declare its Q1 FY22 results today.
Infosys will consider a share buyback proposal on April 14.
Solara Active Pharma Scis received the board’s approval for the amalgamation of Aurore Life Science, Empyrean Lifesciences, and Hydra Active Pharma Sciences with the company.
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%; Uptend Under Pressure, 52%; Downtrend, 6%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: [onfirmed Uptrend], 65%; Rally Attempt, 10%; Uptend Under Pressure, 25%; Downtrend, 0%.