Stock Market Update: Alembic Pharma Surges After Good Q4 Results

Today’s Action

Nifty, +1.4%; Sensex, +1.5%; Nifty Midcap, +1.3%; Nifty Smallcap, +1.7%; Model Portfolio, -1.4%

Market Pulse: Confirmed Uptrend

Today’s session was highly volatile due to the expiry of weekly options contracts. 54% of Nifty50 stocks advanced today, led by Kotak Mahindra Bank(Nse) (+8.3%) and Tata Consultancy Svs. (+5.5%). Kotak Mahindra Bank(Nse) surged as the board approved fundraising plan yesterday. On the flip side, Titan Industries (Nse) (-5.6%) and Hindustan Unilever (-2.6%) were the major decliners.

Barring Nifty FMCG (-1.4%) and PSU Bank (-0.4%), all the sectoral indices closed higher. Nifty IT (+4.4%) and Pvt Bank (+3.2%) were the major advancers. Of 2,112 stocks traded, 1,151 advanced, 638 declined, and the remaining traded flat.

We continue to be very selective about taking any fresh positions. It is important that investors don’t play all their cards at once. We would suggest adopting an investment approach where you begin with a small allocation and increase it as and when the market advances further.

Without trying to predict and decode stories, we will take what the market gives us and continue to monitor unfolding conditions. Stocks with higher relative strength and superior fundamentals can do well. Some leading stocks have sharply corrected. Wait for them to put in at least a short period of consolidation and show a constructive breakout from that range. Buying without this period of constructive behavior into a straight upmove off the bottom, puts you at a risk of drawdown.

Key News

Parag Milk Foods: The company repaid Rs 54 crore to Kotak Mahindra Bank and released its pledged shares with the bank. Remaining Rs 10 crore debt will be repaid on time according to the company. The stock locked in upper circuit of 10%.

Alembic Pharmaceuticals The company reported its March quarter results. Revenue increased 30% y/y to Rs 1,206 crore. PAT surged 65% to Rs 204 crore. The stock advanced 9.6%.

Vodafone Idea: Shares climbed over 10% as the company received accelerated payments under ‘contingent liability mechanism’ from Vodafone Group which was due in September.

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