Market status: Uptrend Under Pressure
Distribution days: Seven
Global stock markets: Dow30, +1.1%; S&P 500, +1.4%; Nasdaq, +1.7%; Nikkei, -0.8%; Kospi, -0.2%
Yesterday, Nifty had a muted opening but quickly succumbed to selling pressure. It made a day’s low of 14,459 i.e., down over 400 points from the previous session’s close. In the process, the index closed below its 21- and 50-DMA. However, post noon, the index saw some buying at lower levels to close in the upper half. The session qualified as a distribution day as it fell more than 0.2% on higher volume compared with the previous session. Barring Nifty IT (+1.9%) and Metal (+0.9%), all the sectoral indices closed in the red. Financial related stocks dragged the market as they closed with losses of 3–4%. FIIs net sold shares worth Rs 932 crore, while DIIs net bought shares worth Rs 75 crore.
Nifty breached its 21- and 50-DMA, after hovering around its key moving averages in the past few weeks. Index breaching its moving averages is a sign of weakness. We will change the status to a Downtrend if Nifty doesn’t retake its 50-DMA and if market leaders show signs of deterioration in their price actions.
Key News
Maruti Suzuki India reported production of 1,72,433 vehicles in March 2021, compared with 92,540 vehicles y/y.
Jindal Steel & Pwr.(Nse) has ended the fiscal year on a strong note with sales hitting a new record of 7,86,000 tonnes in March (up 61%y/y). For FY21, production of 7.51M tonnes (+19% y/y) was the highest ever annual production.
Ircon International Limited ’s board of directors have approved the issuance of fully paid up bonus shares in the ratio of 1:1.
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, 52%; Rally Attempt, 4%; Uptrend Under Pressure, 40%; Downtrend, 4%.
Visit MarketSmith India to Read More About Indian Share Market News, Daily Market Tips, Model Portfolio etc.
Marketsmith India, One stop solution for all your Stock Market needs. Get stock market ideas and stock predictions all at one place. A proprietary tool by William O'Neil India following the CANSLIM method of investing.