MarketsmithIndia Articles

Broader Market Outperforms Nifty; Kotak Mahindra Bank Results Beat Estimates

Posted Date: October 26 2021 | Reading Time: 2 minutes
Today’s Action

Nifty, 0.8%; Sensex, 0.8%; Nifty Midcap, 1.8%; Nifty Smallcap, 2.6%; Model Portfolio, 3.1%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Nifty continued its momentum in today’s session after it staged a brief recovery yesterday. The index made a high of 18,265 and continued to trade near its highs for most of the day. After a dismal performance by the broader market in the last few trading sessions, Nifty Midcap and Smallcap ascended 1.8% and 2.6%, respectively.

Of 2,042 stocks traded, 1,526 stocks advanced, 453 declined, and the remaining closed flat. On the sectoral front, it was a one-way journey for almost all sectoral indices. Nifty Realty and Metal remained the top performers for the day, gaining 3.6% and 2.7%, respectively.

Source : Google Images

Distribution day count currently stands at three. The market remains in an Uptrend, but if the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.

Key News

-Kotak Mahindra Bank(Nse)’s Q2 FY22 results beat estimates. NII grew 3.2% y/y, while profit declined 7% y/y. NPA ratio improved 20bps q/q. Provisions declined 39.7% q/q.

-Sharda Cropchem reported Q2 FY22 results. Revenue grew 51.3% y/y to Rs 642.8 crore. PAT rose 68.4% y/y. Margin contracted to 14% from 15% in Q2 FY21.

-Jindal Stainless reported Q2 FY22 results, with revenue growing 51.7% y/y. Margin expanded 450bps y/y and PAT increased 399% y/y.

What do you think? Please email us any questions or comments.

Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.For more information, see our Legal disclosures here.

Related Article