Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Global stock markets: Dow 30, +0.1%; Nasdaq, +0.2%; S&P 500, +0.4%; Nikkei,+0.6%, Kospi, +0.2%; Shanghai Composite, -0.5%

Yesterday, Nifty rebounded strongly after testing its 50-DMA on Tuesday. The index regained its 21-DMA and is just 1% off highs. Volume was relatively low. The distribution day count is down to three as one expired yesterday. Another distribution day is set to expire on market close today. The broader market also performed well.

On the sectoral front, all indices closed higher. Nifty IT, Metal, Realty, and Financial Services gained 1.5–2.5%. FIIs remained net sellers (Rs 247.6 crore), while DIIs were net buyers (Rs 942.6 crore).

A low distribution day count and Nifty trading above key moving averages is a positive setup. On the flip side, if the index breaches key moving averages on higher volume and adds a couple of distribution days, we may change the market status to an Uptrend Under Pressure. We continue to recommend a selective approach to increasing risk. Focus on quality ideas emerging out of sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels.

Companies Announcing Results Today: Reliance Industries, Sbi Cards And Payment Services, Atul (Nse), Ambuja Cements, and others.

Key News

-Mphasis (Nse)’s Q1 FY22 PAT rose 7.2% q/q to Rs 339.7 crore. Revenue grew 6.6% q/q to Rs 2,690.8 crore. Margin softened 20bps to 15.9%.

Indian Energy Exchange’s Q1 FY22 revenue was up 34.1% y/y to Rs 91 crore. PAT advanced 49.2% y/y to Rs 62.8 crore. EBITDA was up 55.5% y/y to Rs 74.8 crore.

Indiamart Intermesh’s Q1 FY22 revenue grew 18.6% y/y to Rs 181.6 crore. PAT advanced 18.6% y/y to Rs 87.9 crore. EBITDA was up 20.9% y/y to Rs 88.6 crore.

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Author's Bio: 

Marketsmith India, One stop solution for all your Stock Market needs. Get stock market ideas and stock predictions all at one place. A proprietary tool by William O'Neil India following the CANSLIM method of investing.