Nifty, -0.3%; Sensex, -0.5%; Nifty Midcap, 0.1%; Nifty Smallcap, 0.3%; Model Portfolio, 0.3%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Nifty retained yesterday’s momentum in most parts of the trading session and traded near the day’s high. After making an intraday high of 18,342 in the latter half of the day, the index reversed and continued to trade lower on account of expiry pressure and finally ended the day in the red. UPL and Asian Paints remained top gainers for the day, advancing 3.7% and 4.1%, respectively.
Source : Google Images
Broader markets continued to outperform Nifty for the second consecutive day. Of 2,032 stocks traded, 1,038 stocks advanced, 926 declined, and the remaining closed flat. On the sectoral front, it was a mixed bag. Nifty Metal and Bank Nifty fell 1.5% and 0.9%, respectively. On the flip side, Nifty PSU bank and Nifty IT gained 2.1% and 1%, respectively.
Nifty escaped distribution day as today’s volume was lower than yesterday’s. Hence, the distribution day count currently stands at three. 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.
-Maruti Suzuki India’s Q2 FY22 results were marginally below estimates. Revenue grew 9.3% y/y, EBITDA declined 55.8% y/y, and margins declined 610bps y/y. PAT declined 65.3% y/y. Lower capacity utilization impacted margins negatively.
-Greenpanel Industries reported Q2 FY22 results. Revenue grew 87.7% y/y to Rs 422.2 crore. PAT rose 264% y/y. Margin expanded to 26.7% from 22.6% in Q2 FY21.
-Vardhman Textiles (Nse) reported Q2 FY22 results, with revenue growing 46.8% y/y. Margins expanded to 28.4% from 8.9% in Q2 FY21, and PAT increased 699% y/y.