Market Pulse: Confirmed Uptrend
Distribution Day Count: Four
Global stock markets: Dow 30, +0.8%; Nasdaq, +0.9%; S&P 500, +0.8%; Kospi, +1.1%; Shanghai Composite, +0.2%
On Tuesday, Nifty opened 50 points lower and remained under selling pressure, trading toward the day’s low of 15,578 in the first half of the session. In the second half, the index attempted to cover some losses and closed 0.8% lower. As the index fell more than 0.2% on higher volume than in the previous trading session, it added one distribution day. In the broader market, the Smallcap index and Midcap index each declined 1.4%.
On the sectoral front, barring Nifty FMCG (+0.1%), all sectors closed in the red. Nifty Media (-2.6%) was the major decliner, followed by Nifty Metal and Nifty Realty, which were down 2.3% and 2.5%, respectively. Financial stocks continued to remain under selling pressure. FIIs continued to remain net sellers (Rs 2,834 crore), while DIIs were net buyers (Rs 873 crore).
Nifty is currently placed 0.4% above its 50-DMA. It is crucial for the index to find support at its 50-DMA, post a smart recovery to reclaim its 21-DMA, and trade above these moving averages. The distribution day count stands at four. One distribution day expires today. 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: Hindustan Unilever, Ultratech Cement, Bajaj Auto, Biocon (Nse), and others.
Key News
-According to RBI, IDFC can exit as promoter of Idfc First Bank after the five-year lock-in period expires. IDFC holds 36.56% in IDFC First Bank.
Bajaj Finserv’s Q1 FY22 total income fell 1.7% y/y to Rs 13,949 crore. PAT decreased 31.5% y/y to Rs 832 crore.
Havell's India’s Q1 FY22 PAT grew to Rs 234 crore from Rs 63 crore in Q1 FY21. Revenue grew 76% y/y to Rs 2,598 crore.
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