Market status: Downtrend
Global stock markets: Dow30, -0.4%; S&P 500, -0.5%; Nasdaq, -1%; Nikkei, -1.8%; Kospi, +0.3%
Yesterday, Nifty gapped down at the open by more than 300 points. It breached its April 12 low (12,248) and made a new low of 14,192. Buying was seen at the day’s low, which helped Nifty close above 14,350. On the sectoral front, Nifty Bank, Auto, and Fin Services closed 2–3% lower. On the flip side, Nifty Pharma closed in the green.
We had changed the market status to a Rally Attempt from a Downtrend on Friday after Nifty managed to hold above the previous correction low (14,248) for three consecutive days. But yesterday, as Nifty breached that low, we are back in a Downtrend. Looking forward, we will shift the market to a Rally Attempt if Nifty establishes a bottom and stays above yesterday’s low (14,192) for three straight sessions. From there, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend. Should this occur, the focus will be on ideas breaking out of early-stage base patterns and showing the best relative strength with good accumulation.
Acc declared its Q4 FY21 results, which beat consensus on all fronts. PAT grew 74.2% y/y to Rs 563 crore, while revenue grew 22.7% y/y to Rs 4,213 crore. EBITDA was up 46.8% y/y to Rs 860 crore, resulting in a 330bps y/y margin expansion.
Icici Prudential Life Insurance declared its Q4 FY21 results. PAT fell 65% y/y to Rs 62.51 crore, while net premium income grew 13.4% y/y to Rs 11,880 crore.
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, 30%; Rally Attempt, 12%; Uptend Under Pressure, 52%; Downtrend, 6%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 65%; Rally Attempt, 10%; Uptend Under Pressure, 25%; Downtrend, 0%.