Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Global stock markets: Dow 30, +0.8%; Nasdaq, +0.8%; S&P 500, +0.6%; Nikkei, +0.02%, Kospi, -0..3%; Shanghai Composite, -0.5%
Yesterday, Nifty started the session on a flat note and quickly lost over 80 points to make an intraday low of 16,210. Then the index observed good buying and hit a fresh all-time high of 16,349. There was some profit booking in the last hour and the index closed the session near 16,300. The broader market indices continued to underperform as Midcap ended flat and Smallcap closed 0.6% lower. On the sectoral front, the majority of indices closed lower. Nifty Metal (+1.3%) was the top gainer, followed by IT (+0.8%) and FMCG (+0.6%). On the flip side, Nifty PSU Bank (-2.2%) and Media (-1.6%) were the major decliners.
Currently, the distribution day count stands at three. Nifty is trading at an all-time high. We will continue to follow the action of leaders and look for constructive behavior and potential entry points to develop. If the index adds a couple of distribution days, stages a reversal, and breaches key moving averages, 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 from sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels.
Gujarat Gas’s Q1 FY22 PAT advanced 36.1% q/q to Rs 476.2 crore from Rs 350 crore in Q4 FY21. Revenue was down 12.2% q/q to Rs 3,011 crore. Margin expanded to 24% versus 16.2% in Q4 FY21. The results beat consensus on all fronts.
Cipla’s Q1 FY22 PAT advanced 23.7% y/y to Rs 714.7 crore from Rs 577.9 crore in Q1 FY21. Revenue grew 26.6% y/y to Rs 5,504.4 crore. Margin expanded to 24.5% versus 24.1% in Q1 FY21. The results beat consensus on all fronts.
Tata Chemicals’s Q1 FY22 PAT stood at Rs 342.1 crore against a profit of Rs 74.1 crore in Q1 FY21. Revenue advanced 26.8% y/y to Rs 2,977.2 crore. EBITDA grew 67.1% y/y to Rs 601.2 crore.