Nifty Escapes Distribution Day; HUL Results Beat Street Estimates

Today’s Action

Nifty, -0.3%; Sensex, -0.1%; Nifty Midcap, -2.2%; Nifty Smallcap, -1.7%; Model Portfolio, -2.9%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Today, Nifty gapped up again, but started trading lower over the session on heavy profit booking at the higher levels. It made an intraday high of 18,604 and then continued to trade lower from that point throughout the day. The benchmark index finally closed in the lower quartile of the day’s range after remaining volatile during the entire session.

Along with the benchmark index, Nifty Midcap and Smallcap were hammered during the session today. Of 2,050 stocks traded, 427 stocks advanced, 1,574 declined, and the remaining closed flat. On the sectoral front, all sectors closed in the red, except Nifty IT and Nifty Financial Services, which were up 2.3% and 0.1%, respectively. Nifty Realty and PSU Bank closed 4.9% and 3.7% lower, respectively. India VIX closed 1.4% higher for the day. Despite the highly volatile session, Nifty escaped a distribution day as volume was lower in today’s session compared with the previous day.

Source : memecrunch

The distribution day count currently stands at three. Also, Nifty is trading at new highs, above all its key moving averages. We would like the index to continue this trend. We maintain a positive view on the market, 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

-Hindustan Unilever’s Q2 FY22 results beat estimates. Revenue grew 11.2% y/y, while margin shrank 50bps y/y. PAT increased 8.9% y/y.

-Dcm Shriram Cons. (Nse)’s Q2 FY22 results came in, with revenue growing 6.4% y/y. Margin expanded 260bps y/y and PAT increased 33.8% y/y.

-Heidelbergcement India’s Q2 FY22 results were broadly in line with estimates. Revenue grew 12.2% y/y, while margin shrank 430bps y/y and PAT declined 4.5% y/y.