Market Preview
At 8:00am IST, the SGX Nifty Futures was trading at 11,502, compared with Nifty’s close of 11,466 yesterday.
Market status: Confirmed Uptrend
Global stock markets: Dow 30, +1.4%; S&P 500, +1%; Nasdaq, +0.6%; Nikkei, +1.6%; Hang Seng, -0.2%; KOSPI, +1.5%
Yesterday, after a gap-up opening, Nifty kept the bullish momentum intact and traded toward the day's high of 11,497 in the first half of the trading session. In the second half, it traded mostly sideways and closed the day holding solid gains. Volume was on the lower side compared with the previous session. Broader markets continued to witness strong buying interest. Nifty Midcap and Smallcap closed with gains of 0.7% and 1.7%, respectively. FIIs’ net buying was at Rs 219 crore, while DIIs’ net selling was Rs 335 crore. Nifty is trading 2.1% and 5.6% above its rising 21- and 50-DMA, respectively. On the sectoral front, it was a mixed action. Financial stocks led the rally with Nifty Pvt Bank, Nifty Financial Service, and Nifty Bank closing more than 2% higher. On the flip side, Nifty Realty, Nifty Pharma, and Nifty IT ended the day with a loss of 0.3–1.0%.
The Indian market remains in a Confirmed Uptrend. Despite the rise in the distribution day count on Nifty, we remain positive on the general market as the broader market is gaining strength. We would like to see fresh names flexing their muscles for a sustainable rally. We do think it is important to be selective in this environment and we would remain disciplined with entries, requiring a basing period before establishing fresh positions. We will continue to monitor the behavior of the market and keep an open mind as to how it unfolds.
Key News
Lic Housing Finance(Nse) reported Q1 FY21 results. PAT was up 34% y/y to Rs 817.48 crore. NII rose marginally to Rs 1,220.61 crore from Rs 1,181.86 crore y/y. NIM declined to 2.32% from 2.41% y/y. The loan portfolio stood at Rs 2,09,817 crore at the end of June 2020, as against Rs 1,97,768 crore at the end of June 2019.
Irb Infr.Developers(Nse) reported net loss of Rs 30.13 crore for Q1 FY21. Revenue declined to Rs 1,073.46 crore as against Rs 1,821.12 crore y/y. The company said that the toll collection across all projects recovered to the extent of 75% y/y in June.
-Key Q1 results today: Ircon International Limited and Canfin Homes
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, 50%; Rally Attempt, 12%; Uptrend Under Pressure, 38%; Downtrend, 0%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 46%; Rally Attempt, 0%; Uptrend Under Pressure, 50%; Downtrend, 4%.
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