Outlook (Wednesday) : Stocks likely to go up again today

European markets improved last night with moderate to smart gains. The US indices also went up, with the Dow posting a smart gain, and the NASDAQ a stronger one. Most Asian markets are also up this morning with moderate to smart gains. The SGX Nifty was up 26 points a little before our open.

Our market improved yesterday. It is likely to go up again today in keeping with the trend in global markets.

The market improved on Tuesday, with the sensex up 118.45 points (0.36%) at 33,478.35, the nifty 28.15 points (0.27%) at 10,326.90, and the Nifty Midcap 100 32.00 points (0.16%) at 19,830.30.

The market's breadth was positive, with 1.18 times as many advances as declines on the BSE, and 1.24 times on the NSE. The volume in advancing issues was 61.2% (70.9%) on the BSE, and 55.7% (69.3%) on the NSE, while that in declining ones was 37.2% (26.9%) on the BSE, and 42.9% (30.2%) on the NSE.

The number of Hotline stocks at 200-day highs fell from 19 to 12, while 200-day lows rose from 0 to 1. 20-day highs fell from 26 to 21, and 20-day lows fell from 10 to 8. 5-day highs fell from 103 to 92, and 5-day lows fell from 28 to 25. The 240 Hotline stocks averaged a gain of 0.16%.

The nifty opened 31 points up, and improved further to reach its high at 1340. It then dropped a bit sharply to make its low at 1435, and closed just above its worst with a 0.27% gain. The Nifty Midcap 100 rose 0.16%.

The sensex and nifty remain in intermediate downtrends while the nifty midcap 100 has just re-entered an uptrend. The downtrend for the main indices started on Nov 7 when the sensex topped out at 33,866. The levels above which the downtrend would end remain 33,875 for the sensex, and 10,500 for the nifty. The midcap 100 index would go into a downtrend below 19,125. (Figures rounded to the nearest 25).

Global indices are in mixed intermediate trends. The major indices in uptrends are now the Dow, the NASDAQ composite, Hang Seng, Tokyo’s Nikkei and Shanghai. The rest are in downtrends.

The sensex, nifty and nifty midcap 100 indices have been maintaining 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 be 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 went up from 19.1% to 20.7% 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 gone below its 200-day moving average once again.

The FIIs sold $35.1 million of stocks on Monday, and are averaging daily purchases of $92.3 million over the last five sessions. The MF figure has not been released after Nov 10 by SEBI. They were averaging purchases of $127.4 million up to that day.

The Dow rose 160.50 points (0.69%) to 23,590.83, and the NASDAQ composite went up 71.77 points (1.06%) to 6,862.48.

Infosys went up 0.27% to $15.12, Wipro rose 0.19% to $5.34, Cognizant Tech went down 0.18% to $71.77, Tata Motors rose 1.11% to $32.72, Vedanta gained 0.57% at $19.32, ICICI Bank rose 1.14% to $9.73, HDFC Bank rose 0.17% to $96.68, Dr. Reddy went up 4.31% to $36.80, MTNL went down 1.47% to $0.55, MakeMyTrip went up 0.54% to $27.75, WNS rose 0.54% to $40.65, Yatra Online gained 3.95% at $8.95, and Sify Technologies went down 3.85% to $1.50.