Nifty, -0.5%; Sensex, -0.6%; Nifty Midcap, -0.4%; Nifty Smallcap, -0.8%; Model Portfolio, -0.5%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Four
Selloff on Nifty has been the story of the week. Today, Nifty again opened in the green, made an intraday high of 18,384, and continued to trade lower for much of the remaining session. However, the index tried staging a last-hour recovery of 130 points and ended the session at 18,178. As volume today was lower than in the previous session, Nifty escaped a distribution day. Today, India VIX declined 1.5%. After reporting tepid numbers in its Q2 FY22 results, Asian Paints lost 4.9% today.
Along with the benchmark index, Nifty Midcap and Smallcap also declined. Of 2,047 stocks traded, 952 stocks advanced, 1,028 declined, and the remaining closed flat. On the sectoral front, it was a mixed bag today, with Nifty IT and Metal down 2.5% and 1.8%, respectively. On the flip side, Nifty PSU Bank and Bank Nifty gained 2.7% and 1.3%, respectively.
The distribution day count stands at four. However, one distribution day is set to expire next week. The market remains in an 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.
-Asian Paints’s Q2 FY22 results missed estimates. Revenue grew 32.6% y/y, while margin shrank 1,080bps y/y. PAT decreased 29% y/y. EBITDA for the quarter declined 28.5% y/y.
-Idbi Bank announced Q2 FY22 results. NII grew 9.4% y/y and PAT increased 74.8% y/y. GNPA ratio shrank 60bps q/q, while NNPA ratio improved 6bps q/q. NIM came in at 1.62% q/q against expectations of 4.06%.
-Gateway Distriparks(Nse) announced Q2 FY22 results. Revenue grew 27.9% y/y while margin improved 230bps y/y. PAT increased 1,279% y/y.