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Nifty Adds Distribution Day; Gujarat Gas Results Misses Estimates

Posted Date: October 28 2021 | Reading Time: 2 minutes
Today’s Action

Nifty, -1.9%; Sensex, -2.0%; Nifty Midcap, -2.0%; Nifty Smallcap, -1.9%; Model Portfolio, -1.6%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Four

Nifty opened lower in today’s session and traded lower for the entire day. Again expiry pressure was evident and the selloff in Nifty and other broad based indices intensified. Nifty made an intraday low of 17,799.45 and closed near its day’s lows. The fear index was again in action today and climbed 6.4%. Among the benchmark stocks, Adani Ports and ITC remained the biggest laggards and lost 7.4% and 5.6%, respectively.

Broader markets came under pressure in today’s session. Of 2,040 stocks traded, 445 stocks advanced, 1,544 declined, and the remaining closed flat. On the sectoral front, all indices were under selling pressure. Nifty PSU Bank, Nifty Realty, and Nifty Metal were the biggest laggards and were down 5.2%, 3.8%, and 3.4%, respectively.

Source : Google Images

Nifty added one distribution day today and the current distribution day count stands at four. The market remains in a Confirmed Uptrend, but if the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.

Key News

-Gujarat Gas’s Q2 FY22 results missed estimates. Revenue grew 20.1% q/q, EBITDA declined 41.7% q/q, and margins declined 1,230 bps q/q. PAT declined 47.5% y/y. Volumes came in at 11.41 mmscmd against estimates of 9.2 mmscmd.

-V-Guard Industries reported Q2 FY22 results. Revenue grew 45.7% y/y to Rs 907.4 crore. PAT rose 15.6% y/y. Margin contracted to 10.5% from 12.3% in Q2 FY21.

-Jindal Stainless (Hisar) reported Q2 FY22 results, with revenue growing 62.8% y/y. Margins expanded to 15.4% from 11.1% in Q2 FY21, and PAT increased 196% y/y.

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