At 8:15 am IST, SGX Nifty Futures was trading at 14,464, compared with Nifty’s close of 14,631 on Friday.
Market Pulse: Confirmed Uptrend
Distribution Day Count: One
Global stock markets: Dow30, -0.5%; S&P 500, -0.7%; Nasdaq, -0.9%; Kospi, +0.6%; Nikkei, -0.8%
Last week, Nifty gapped higher on Monday morning as Banks were in momentum after ICICI Bank released good Q4 FY21 results. On Monday, we shifted the market to a Rally Attempt as the index managed to stay above its recent low (14,151) for three consecutive sessions. On Tuesday, Nifty reclaimed its 21-DMA. On Wednesday, it reclaimed its 50-DMA and staged a follow-through day. So, we upgraded the market status to a Confirmed Uptrend. Friday, Nifty was under selling pressure and breached its 50-DMA. Also, as the fall was on high volume compared with the previous session, we considered it a distribution day.
On the sectoral front, for last week, Nifty Metal (+9%) was the top gainer, followed by Nifty Bank (+3.3%). Nifty Financial Services, Energy, Media, and Realty closed 2.0–2.5% higher. Nifty IT closed flat, while FMCG closed 0.3% lower. On Friday, the advance-decline ratio was in favor of decliners. Of the 2,252 stocks traded, 822 advanced, 1,048 declined, and the rest remained unchanged.
Looking ahead, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. Stocks that are breaking out of consolidation have higher relative strength, and superior fundamentals can do well. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.
Key News
Key Q4 FY21 results today: KOTAKBANK, SBILIFE, LTTS, TATACHEMICALS, and GODREJPROP.
RELIANCE reported its Q4 FY21 results on Friday after market close. Revenue grew 11% y/y to Rs 1,54,896 crore. PAT surged 108% y/y to Rs 13,227 crore.
YESBANK reported its Q4 FY21 results on Friday after market close. NII fell 22.5% y/y to Rs 986 crore. It reported a loss of Rs 3,787 crore versus a loss of Rs 3,668 crore in Q4 FY20.
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, 46%; Rally Attempt, 12%; Uptrend Under Pressure, 42%; Downtrend, 0%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 84%; Rally Attempt, 8%; Uptrend Under Pressure, 8%; Downtrend, 0%.