Nifty Ends the Session Strongly; NCC Bags Six Orders Worth Rs 1,548 Crore

Nifty opened on a flat note and traded in both positive and negative territories. In the second half, some buying helped the index to close near the day’s high. Volume of shares traded dried up for the two consecutive days. Around 74% of Nifty50 stocks closed in the green, led by Zee Entertainment Ents. (+8.1%) and Mahindra & Mahindra (+5.8%). On the flip side, Bajaj Auto (-2.6%) and Hero Motocorp (-1.7%) were the major decliners.

Broader market indices outperformed the major index. Barring Nifty PSU Bank (-0.4%) and Fin Service (-0.03%) all the sectoral indices closed in the green. Nifty Media (+3.4%) and Metal (+1.8%) advanced the most.

The market remains in an Uptrend Under Pressure. We will be slightly cautious while initiating fresh long positions. We will change the status to a Downtrend, if two-three more distribution days are added or if Nifty breaches its 50- and 200-DMA. On the flip side, the status will be shifted back to a Confirmed Uptrend if Nifty retakes 11,795 level (high during the recent rally).

Key News

Ncc bagged six orders totaling Rs 1,548 crore. Major order is from Water division worth Rs 959 crore, followed by Rs 262 crore order from Building division and remaining four from Electrical division.

Jubilant Foodworks announced its Q1 FY21 results. Revenue was down 59% y/y to Rs 388 crore. It reported a loss of Rs 74 crore compared with a profit of Rs 71 crore in the corresponding quarter last year.

Bajaj Auto declared its August sales numbers. Total two-wheeler sales declined 1% y/y to 3,21,508 units, whereas domestic sales de-grew 11% to 1,85,879 units.

SGX Nifty Indicates Positive Opening; HSIL Announces Share Buyback of Rs 70 Crore

Nifty, after a flat opening yesterday, traded sideways in the first half of the trading session. In the second half, global sentiments weighed on the index, leading to a sharp selloff in the Indian market. Nifty formed lower low in the hourly chart and closed near the day’s low, posting significant loss.

In the process, Nifty breached its 50-DMA. However, as volumes were lower than the previous session, Nifty escaped from adding a distribution day. In addition, most of the leaders are still trading above their 50-DMA. Thus, we will closely watch one or two days more before downgrading the market to a Downtrend. The broader market also felt the heat of bearish sentiment. Nifty Midcap was down 4.1%, while Smallcap closed 4.2% lower.

As the market is in an Uptrend Under Pressure, investors should proceed with caution. Unless a stock shows exceptional fundamental and technical strength, no new addition to the portfolio is advised. Investors should consider booking profits in stocks that have performed well and advanced 20–25% from their ideal buy points.

Key News

Hsil announced buyback of shares up to Rs 70 crore at a share price of Rs 105, which is around 45% premium to the current market price.

Shree Renuka Sugars approved issue of 21.16 crore equity shares at a price of Rs 8.74 per share aggregating to Rs 185 crore on preferential basis to Promoter, Wilmar Sugar Holdings Pte 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, 20%; Rally Attempt, 0%; Uptrend Under Pressure, 68%; Downtrend, 12%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 12%; Rally Attempt, 4%; Uptrend Under Pressure, 80%; Downtrend, 4%.

Buy Watchlist: Bayer Cropscience, Info Edge (India) (Nse), Alembic Pharmaceuticals, Bharti Airtel, Biocon (Nse), Sun Pharm.Industries, Multi Cmod.Ex.Of India, Tata Consultancy Svs., Escorts, Sudarshan Chemicals, Sumitomo Chemical India, and Aurobindo Pharma

Sell Watchlist: Indian Energy Exchange, Balkrishna Industries, and Bse

SGX Nifty Indicates Negative Opening; Rites Announces Share Buyback of Rs 257 Crore

Global stock markets: Dow 30, -0.9%; S&P, -1.1%; Nasdaq, -1.1%; Nikkei, +0.2%; Hang Seng, -0.5%; KOSPI, +0.02%

During the last week, Nifty moved in a relatively narrow range compared with the previous weeks. Through the week, it traded near its 21-DMA. On Friday, Nifty opened on a positive note and traded in positive territory for most of the session. After 2pm, sharp selling in financial stocks dragged the market to negative territory. It lost around 140 points in a span of 30 minutes. Later, some recovery was seen as Nifty pared most of its losses.

In the last week, the reaction on sectoral indices were mixed. Nifty Pharma (+8.9%) was the biggest advancer, followed by Nifty IT (+6.4%), and Realty (+5.5%). On the flipside, Nifty Financial (-4.5%) and PSU Bank (-3.9%) were the major decliners.

As the market condition is in an Uptrend Under Pressure, investors should proceed with caution. Unless a stock shows exceptional fundamental and technical strength, no new addition to the portfolio is advised. Investors should consider booking profits in stocks that have performed well and advanced 20–25% from their ideal buy points. Looking forward, we will change the status to a Downtrend, if more distribution days are added or if Nifty breaches its 50- and 200-DMA. On the flip side, the status will be back to a Confirmed Uptrend if Nifty retakes the 11,795 level (high during the recent rally).

Key News

Rites announced the buyback of shares up to Rs 257 crore at a share price of Rs 265, which is around 4% premium to the current market price. It has fixed September 30 as the record date.

Total liabilities of the Indian government increased to Rs 101.3T at the end of Q1 FY21, from Rs 94.6T at the end of March quarter.

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, 34%; Rally Attempt, 8%; Uptrend Under Pressure, 54%; Downtrend, 4%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 34%; Rally Attempt, 8%; Uptrend Under Pressure, 58%; Downtrend, 0%.

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