Global Markets Trade Higher; Reliance, Ajanta Pharma, and HDFC to Report Today

Posted Date: July 30 2020
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At 8:00am IST, the SGX Nifty Futures was trading at 11,234, compared with Nifty’s close of 11,203 yesterday.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, +0.6%; S&P 500, +1.2%; Nasdaq, +1.4%; KOSPI, +0.1%; Nikkei, +0.03%; Hang Seng, +0.3%

Yesterday, after a muted opening, Nifty attempted to continue its positive momentum following Tuesday’s upswing. However, the index slipped in the red after making a high of 11,341. Nifty dropped almost 200 points from its high as selling pressure intensified in the second half in index heavyweights such as RIL, HDFC Bank, and IT stocks. As volume was lower compared with Tuesday’s session, we did not consider yesterday's move as a distribution day. The selling was concentrated among large-cap stocks only. Nifty Midcap and Nifty Next50 closed in the green.

On the sectoral front, Nifty Pharma (+3%) was the outperformer while Nifty Auto and IT were down ~1%. FIIs’ and DIIs’ net selling was Rs 352 crore and Rs 506 crore, respectively.

The Indian market remains in a Confirmed Uptrend. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, and it is an environment where outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of leading stocks and keep an open mind as to how it unfolds. We will wait for solid entry points before buying.

Key News

Reliance IndustriesHousing Development Fin., and Ajanta Pharma will report their Q1 FY21 results today.

Bharti Airtel released Q1 FY21 results. The company reported a loss of Rs 15,933.1 crore. Revenue was up 0.9% q/q to Rs 23,939 crore. Margin advanced 90bps to 44.4%.

Chambal Fert.&Chems. released Q1 FY21 results. PAT advanced 81.5% y/y to Rs 298.4 crore, while revenue was up 12.8% y/y to Rs 3,218.7 crore. Margin was up 280bps to 18.4%.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 54%; Rally Attempt, 0%; Uptrend Under Pressure, 42%; Downtrend, 4%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 46%; Rally Attempt, 0%; Uptrend Under Pressure, 54%; Downtrend, 0%.

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