Nifty, -2.5%; Sensex, -2.5%; Nifty Midcap, -1.9%; Nifty Smallcap, -1.9%; Model Portfolio, -1.9%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Four
It was a volatile week for the markets as Nifty was down 2.5%, its highest loss since March 2021. It rebounded from its 21-DMA on Monday and closed higher on Tuesday as well. But, profit booking gripped the markets in the next three sessions. Today, the index was highly volatile as markets had no clear direction. After a flat opening, it quickly slipped well below 200 points within the first 10 minutes of the session. Some buying was seen at the lower levels and the index rapidly gained 300 points in the next two hours, thus marking the day’s high of 17,915. However, the top was sold and the index lost all the 300 points gained, closing near the day’s low.
On the sectoral front, barring Nifty PSU Bank (+0.1%), all sectoral indices closed lower for the week. Nifty Energy (-4.3%) was the top loser followed by Nifty Pvt Bank (-3.6%) and Nifty Bank (-3.0%). Nifty Pharma and FMCG are in an Uptrend Under Pressure while the remaining are in a Confirmed Uptrend.
During the week, Nifty added one distribution day and escaped two due to lower volume. The distribution day count currently stands at four. The market remains in a Confirmed Uptrend, but is just about 100 points above its 50-DMA. If the index 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.
-Dr. Reddy's Laboratories’s Q2 FY22 results beat consensus. Revenue was up 18% y/y to Rs 5,763 crore. EBITDA margin improved 110bps to 27%. Profit increased 30% to Rs 992 crore.
-Ajanta Pharma reported Q2 FY22 results. Revenue grew 23.6% y/y to Rs 884.8 crore. EBITDA declined 4.2% and margin declined 860bps. PAT increased 15.1% to Rs 195.9 crore.
-Escorts reported Q2 FY22 results. Revenue was up 1.4% y/y to Rs 1,662.3 crore. PAT declined 22.6% to Rs 176.7 crore. EBITDA margin contracted to 12.6% from 18.4% in Q2 FY21.
-Adani Power (Nse) reported Q2 FY22 results. Revenue was down 33.1% y/y to Rs 5,183.7 crore. EBITDA margin came in at 22.4% against 52.2% in Q2 FY21. It reported a loss of Rs 230.6 crore compared to a profit of Rs 2,228.1 crore in Q2 FY21.