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GST Collection for October at Rs 1.3T, Second Highest Ever; All Sectoral Indices Edge Higher

Posted Date: November 01 2021 | Reading Time: 2 minutes
Daily Action

Nifty, +1.5%; Sensex, +1.4%; Nifty Midcap, +1.8%; Nifty Smallcap, +0.8%; Model Portfolio, +1.4%.

Market Pulse: Confirmed Uptrend

Distribution Day CountFour

Nifty started the session more than 100 points higher, but was highly volatile in the first hour. After breaching 17,700 briefly, the index found good buying, advancing about 250 points to make the day’s high of 17,954. As today’s volume is lower compared to that of Friday’s, we will not consider today as an additional follow-through-day (FTD).

All sectoral indices closed higher today. Nifty Realty (+4.0%) was the top gainer, followed by Nifty Metal (+3.1%), IT (+2.6%), and Media (+2.6%). All other indices closed with gains of 1.0-1.7%. Of the 2,063 stocks traded, 1,399 advanced, 596 declined, and the remaining closed flat.

The distribution day count currently stands at four. The market remains in a Confirmed Uptrend. With today’s action, Nifty is just 100 points below its 21-DMA. If the index retakes its 21-DMA, we can expect a further rally and the index hitting a new all-time high. However, if it succumbs to selling pressure and breaches its 50-DMA, we may change the market status to an Uptrend Under Pressure. Reducing exposure to stocks breaking below their 21- or 50-DMAon higher volume is important.

Key News

-Housing Development Fin.’s Q2 FY22 Net interest income (NII) increased 12.7% y/y to Rs 4,108.5 crore. PAT was up 31.7% to Rs 3,780.5 crore

-Coal India (Nse)’s October production grew 6.4% y/y to 49.8MT.

-Indian Railway Catering And Tourism Corp reported Q2 FY22 results. Revenue surged 357% y/y to Rs 405 crore. PAT increased 393% to Rs 158.6 crore.

GST collections for October came in at Rs 1.3T against Rs 1.17T in September. October’s collections were the second highest monthly GST collections ever, following Rs 1.41T collected in April. Barring June, collections in all months have crossed the Rs 1T mark comfortably.

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