Nifty, +0.9%; Sensex, +0.8%; Nifty Midcap, +2.4%; Nifty Smallcap, +1.2%; Model Portfolio, +1.3%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Five
It was a short week of trading due to Diwali. On a weekly basis, Nifty halted two weeks of decline. Trading volumes also remained below average through the week. Today being a weekly expiry, Nifty traded in a narrow range in the first hour of the session. Volatility gripped the market in the second half. As the index fell more than 0.2% on volume higher than that of yesterday, we will consider today’s session as a distribution day.
All sectoral indices closed higher for the week. Nifty Realty (+9.6%) was the top gainer, followed by Nifty PSU Bank (+3.1%). Of the 2,045 stocks traded, 886 advanced, 1,080 declined, and the remaining closed flat.
Today’s session will be considered a distribution day as the index fell more than 0.2% on volume higher than that of yesterday’s session. However, one distribution day expired today owing to the 25-trading-sessions rule. Thus, the distribution day count remains at five. One more distribution day will expire on Monday. If the market 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-DMA on higher volume is important.
-State Bank Of India’s Q2 FY22 NII increased 10.7% y/y to Rs 31,183 crore. PAT surged 66.7% to Rs 7,627 crore. Asset quality improved as GNPA decreased 42bps to 4.9% and NNPA declined 25bps to 1.5%.
-Aditya Fash.& Retail announced Q2 FY22 results. Revenue surged 100% y/y to Rs 2,054 crore. It reported a profit of Rs 5.5 crore against a loss of Rs 186.3 crore y/y. EBITDA margin came in at 15.3% versus 5.6% in Q2 FY21.