Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Global stock markets: Dow 30, -0.9%; Nasdaq, +0.1%; S&P 500, -0.5%; Nikkei, +0.4%, Kospi, +0.01%; Shanghai Composite, +0.1%
Yesterday, Nifty had a gap up opening with a gain of 65 points. The momentum continued during the session as the index made a fresh all-time high of 16,290. Also, one distribution day expired yesterday, decreasing the count to three, which is a good sign. However, the broader market underperformed. Nifty Midcap and Smallcap closed 1.2% and 1.0% lower, respectively. On the sectoral front, barring financial-related indices, all closed in the red. Financial-related indices closed 0.3–2.6% higher. On the flip side, Nifty Realty (-1.7%) and Media (-1.2%) 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.
Companies Announcing Results Today: Cipla, Gail (India) (Nse), Gujarat Gas, Birla Corporation (Nse), Narayana Hrudayalaya, and others.
Titan Company’s Q1 FY22 PAT stood at Rs 61 crore against a loss of Rs 270 crore in Q1 FY21. Revenue advanced 74.5% y/y to Rs 3,249 crore. EBITDA grew to Rs 144 crore from a loss of Rs 246 crore in Q1 FY21.
Hindustan Ptl. (Nse)’s Q1 FY22 PAT decreased 40.5% q/q to Rs 1,795 crore from Rs 3,018 crore in Q4 FY21. Revenue fell 3.2% q/q to Rs 72,443.5 crore. Margin contracted to 4.4% versus 6.2% in Q4 FY21. The results beat consensus on all fronts.
Apollo Tyres (Nse)’s Q1 FY22 PAT stood at Rs 127.7 crore against a loss of Rs 134.5 crore in Q1 FY21. Revenue advanced 59.1% y/y to Rs 4,584.4 crore. EBITDA grew to Rs 566.6 crore from Rs 245.5 crore in Q1 FY21.