Global stock markets: Dow 30, +1.5%; S&P, +1.6%; Nasdaq, +1.9%; Nikkei, -0.2%; Hang Seng, -0.3%; KOSPI, +0.9%

Yesterday, Nifty gapped higher and kept the bullish momentum intact throughout the day. The index formed higher highs in the hourly chart and closed the upward trending session holding solid gains. In the process, Nifty moved closer to its 50-DMA and is just short of 0.6% to reclaim it. On the sectoral front, all the indices closed in the green. Nifty Media (+4.8%) advanced the most. Nifty Bank, Auto, PSU Bank, PVT Bank, and Realty advanced in the range of 3–4%. FIIs net selling was Rs 27 crore, while DIIs net buying was Rs 542 crore. INR depreciated 17 paise to Rs 73.78 per USD, while gold price remains below Rs 50,000 per 10 grams.

Under this market conjuncture, investors should wait for the market to show credible signs of recovery and meanwhile, observe the stocks that show resilience under falling market scenarios. Looking forward, we will shift the market to a Rally Attempt if Nifty establishes a bottom and stays above Friday’s close today. From there, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend. Should this occur, the focus will be on ideas that show the best relative strength with good accumulation.

Key News

The IPOs of Mazagon Dock Shipbuilders and UTI Asset Management Company will open today.

Infosys’s wholly-owned subsidiary EdgeVerve Systems recently signed a partnership with Minit, a leader in process mining, to help clients accelerate process excellence.

India Grid Trust has completed acquisition of 74% paid-up capital of Jhajjar KT Transco Private Ltd. (JKTPL) from Kalpataru Power Transmission Ltd. (KPTL) and Techno Electric & Engineering Company Ltd.

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, 12%; Rally Attempt, 4%; Uptrend Under Pressure, 68%; Downtrend, 16%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 4%; Rally Attempt, 4%; Uptrend Under Pressure, 60%; Downtrend, 32%.

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Stock Market Tips
Rally Attempt
follow-through day
Confirmed Uptrend
Uptrend Under Pressure
Downtrend
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