Nifty, -0.2%; Sensex, -0.1%; Nifty Midcap, -0.4%; Nifty Smallcap, -0.1%; Model Portfolio, -0.3%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: FourNifty gapped down at the start of the trading session and remained range-bound for most of the day. It made an intraday low of 17,915, then staged an upward recovery in the latter half of the day. However, it failed to close on a positive note. Metal stocks remained key laggards with Hindalco Industries and Tata Steel declining 3.4% and 2.9%, respectively.
Broader market movements were divergent for the day as Nifty Midcap declined 0.4%, but Nifty Smallcap closed flat. Most sectoral indices succumbed to selling pressure, with Nifty PSU Bank and Nifty Metal declining 2.4% and 1.8%, respectively. On the other hand, Nifty Auto and Nifty Pharma closed 0.6% and 0.4% higher, respectively. Out of the 2,037 stocks traded, 969 advanced, 1,003 declined, and the remaining closed flat.
The distribution day count currently stands at four. 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.
-Bank Of Baroda’s Q2 FY22 earnings beat estimates. PAT increased 24.4% y/y and NII increased 2.1% y/y. Other income came in at Rs. 3,759.2 crore against Rs. 2,909.6 crore in Q2 FY21. NNPA ratio improved 23bps sequentially to 2.8%.
-Alembic Pharmaceuticals’s Q2 FY22 earnings beat estimates. Revenue grew 11.3% y/y to Rs 1,292 crore. PAT decreased 49.2% y/y to Rs 169.3 crore. EBITDA margin shrank 1,050bps y/y to 19.9%.
-Avadh Sugar & Energy announced Q2 FY22 results. Revenue came in flat y/y at Rs 619.6 crore. It reported a profit of Rs 25.2 crore y/y compared with a profit of Rs 7.2 crore. EBITDA margin came in at 12.1% versus 8.7% in Q2 FY21.