Market Pulse: Confirmed Uptrend
Distribution Day Count: Four
Global stock markets: Dow 30, +1.3%; Nasdaq, +0.9%; S&P 500, +1.1%; Kospi, +0.8%; Nikkei, +2.2%; Shanghai Composite, +1.1%
Last week, Nifty breached its 21-DMA on Thursday after reclaiming it on Monday. Markets were volatile and the trading range was slightly widened. Nifty escaped two distribution days as volumes were low. Friday, Nifty opened lower and turned positive for a brief moment. It traded in a narrow range with intraday volatility. The advance-decline ratio was in favor of advancers. Of the 2,261 stocks traded, 1,077 advanced, 838 declined, and the rest remained unchanged. On a weekly basis, Nifty Realty (+6.3%) advanced the most followed by Nifty Metal (+2.8%) and Media (+1.1%). Nifty Auto and PSU Bank closed 2.5–2.1% lower.
The distribution day count is currently elevated to four. Nifty closed below its 21-DMA. However, the volume was lower. If the index falls further and adds a distribution day, 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.
Avenue Supermarts announced Q1 FY22 results. Consolidated revenue from operations grew 33.5% y/y to Rs 5,183.1 crore. PAT increased 143% to Rs 94.8 crore.
Bhansali Engr. (Nse) announced Q1 FY22 results. Consolidated revenue surged 133% y/y to Rs 231.9 crore. It reported a profit of Rs 77.4 crore compared to a loss of Rs 1.4 crore in Q1 FY21.