Outlook (Tuesday) : Stocks likely to go up today

European markets declined last night with small to moderate losses. The US indices rallied again, with the Dow as well as the NASDAQ posting smart gains. Asian markets are up this morning with small to moderate gains. The SGX Nifty was also up 14 points a little before our open.

Our market improved yesterday and is likely to go up further today in keeping with Asian markets.

The market improved on Monday, with the sensex up 251.12 points (0.73%) at 34,843.51, the nifty 60.30 points (0.56%) at 10,741.55, and the Nifty Midcap 100 2.80 points (0.01%) at 21,697.35.

The market's breadth was mixed, with 1.11 times as many advances as declines on the BSE, and 1.01 times as many declines as advances on the NSE. The volume in advancing issues was 58.6% (49.2%) on the BSE, and 62.6% (54.0%) on the NSE, while that in declining ones was 40.7% (50.2%) on the BSE, and 36.9% (45.5%) on the NSE.

The number of Hotline stocks at 200-day highs rose from 21 to 28, while 200-day lows were unchanged at 0. 20-day highs rose from 36 to 47, and 20-day lows rose from 12 to 13. 5-day highs rose from 43 to 56, while 5-day lows fell from 78 to 77. The 240 Hotline stocks averaged a gain of 0.14%.

The nifty opened 37 points up before slipping to its low at 0925. It then improved steadily to reach its high at 1115, before declining to end the day with a reduced gain of 0.56%. The Nifty Midcap 100 inched up just 0.01%.

The market’s intermediate trend remains up, with the sensex, nifty and nifty midcap 100 all going through uptrends. The uptrend started on December 6 when the sensex bottomed out at 32,565. The levels below which the intermediate uptrend would end remain 33,700 for the sensex, 10,400 for the nifty, and 20,825 for the midcap 100. (Figures have been rounded down to the nearest 25 as usual).

All major global indices are currently going through intermediate uptrends, with the German DAX also entering one - albeit a little later than others. Several indices are routinely hitting new all-time highs.

The sensex, nifty and nifty midcap 100 indices have rising intermediate tops and bottoms, and are also well above their 200-day averages, indicating that our market’s long-term (major) trend continues to remain 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 were unchanged at 13.0% yesterday.

The major trend of all major global indices is up, as they have rising tops and bottoms, and are above their 200-day moving averages. London’s FTSE-100 has also distanced itself from its 200-dma and is making all-time highs.

The FIIs sold $0.6 million of stocks on Friday, and are averaging daily sales of $15.6 million over the last five sessions. The MFs bought $43.7 million worth, and are averaging purchases of $94.5 million.

The Dow rose 228.46 points (0.89%) to 25,803.19, and the NASDAQ composite went up 49.29 points (0.68%) to 7,261.06.

Infosys fell 2.66% to $16.81, Wipro fell 0.70% to $5.68, Cognizant Tech rose 0.74% to $74.56, Tata Motors rose 0.09% to $34.32, Vedanta went up 1.40% to $21.67, ICICI Bank rose 2.25% to $9.98, HDFC Bank gained 1.07% at $102.43, Dr. Reddy went up 0.34% to $38.20, MTNL went down 9.52% to $0.76, MakeMyTrip went up 0.16% to $31.85, WNS went down 0.07% to $41.10, Yatra Online went down 0.28% to $7.24, and Sify Technologies lost 0.80% at $2.48.