Outlook (Friday) : Mixed moves likely today

Most European markets slipped last night with small losses. However, the US indices improved, and posted moderate gains. Asian markets are mixed this morning, with small to moderate moves. The SGX nifty was down 9 points a little before our market opened.

Our market rallied strongly yesterday. It is likely to have a quieter mixed session today in keeping with Asia.

The market improved on Thursday, with the sensex up 448.39 points (1.48%) at 30,750.03, the nifty 149.20 points (1.59%) at 9,509.75, and the Nifty Midcap 100 224.80 points (1.31%) at 17,345.35.

The market's breadth was positive, with 2.32 times as many advances as declines on the BSE, and 3.18 times on the NSE. The volume in advancing issues was 79.4% (30.0%) on the BSE, and 79.9% (32.2%) on the NSE, while that in declining ones was 19.2% (69.0%) on the BSE, and 19.7% (67.8%) on the NSE.

The number of Hotline stocks at 200-day highs rose from 3 to 9, while 200-day lows fell from 12 to 7. 20-day highs rose from 5 to 16, while 20-day lows fell from 112 to 22. 5-day highs rose from 10 to 52, while 5-day lows fell from 174 to 29. The 240 Hotline stocks averaged a gain of 2.20%.

The nifty opened 24 points up, and slipped marginally to its session low at 0930. It then rallied strongly, made its high at 1510, and closed a bit below its best with a solid 1.59% gain. The Nifty Midcap 100 rose 1.31%.

The sensex and nifty have bounced back after getting to the brink of falling into intermediate downtrends, and their uptrends are still on. The nifty midcap 100 index is in a downtrend. The levels below which an intermediate downtrend would be triggered remain 30,100 for the sensex and 9,350 for the nifty (Figures rounded down to the nearest 25). The nifty midcap would have to go above 18,525 to start a new uptrend.

Global markets are in mixed intermediate trends. The US indices are back in uptrends. The Hang Seng, Nikkei, London’s FTSE-100 and our market are also in uptrends, while Shanghai, DAX, CAC-40 and Brazil are still in intermediate downtrends.

The sensex, nifty and nifty midcap 100 indices are all above their last intermediate tops, as well as their 200-day averages - indicating that the market’s major (longer-term) trend is comfortably up. There was no change in the major trend of any of the Hotline stocks yesterday. The number of Hotline stocks below their 200-day moving averages fell from 26.8% to 21.5%.

The major trend of all the major global markets are up, with their indices in rising tops and bottoms, and above their 200-day moving averages. The Shanghai Composite is, however, below its 200-day average.

The FIIs bought $55.1 million of stocks on Wednesday, and are averaging daily purchases of $5.1 million over the last five sessions. The MF figure was not released. They were averaging purchases of $121.3 million up to Tuesday.

The Dow rose 70.53 points (0.34%) to 21,082.95, and the NASDAQ composite went up 42.24 points (0.69%) to 6,205.26

Infosys gained 2.04% at $15.51, Wipro rose 2.55% to $10.87, Cognizant Tech rose 0.59% to $66.88, Tata Motors rose 2.09% to $36.56, Vedanta rose 4.15% to $14.55, ICICI Bank rose 3.20% to $9.68, HDFC Bank gained 2.57% at $86.69, Dr. Reddy fell 1.78% to $37.54, MakeMyTrip went down 1.25% to $31.65, WNS fell 0.39% to $33.50, Yatra Online went down 0.76% to $9.14, and Sify Technologies rose 2.53% to $0.81.