Nifty, -0.1%; Sensex, -0.1%; Nifty Midcap, +1.2%; Nifty Smallcap, +0.5%; Model Portfolio, +1.1%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Four
Nifty started the session on a positive note and made an intraday high of 18,112. It then remained volatile throughout the day. However, the index traded in a narrow range of 129 points in today’s session. Banking and Finance stocks led today’s correction with Hdfc Bank and Housing Development Fin. declining 1.7% and 1.4%, respectively.
The broader market indices continued to outperform Nifty. Nifty Midcap and Smallcap closed in the green at 1.2% and 0.5%, respectively. Sectoral indices were a mixed bag with Nifty Auto and PSU Bank advancing 1% and 0.8%, respectively. Meanwhile, Nifty Financial Services and Metal declined 0.7% and 0.3%, respectively. Of the 2,052 stocks traded, 1,185 advanced, 985 declined, and the remaining closed flat.
One distribution day expired yesterday due to the 25-trading-session rule. The distribution day count now 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.
-Ncc’s Q2 FY22 PAT increased 76.3% y/y to Rs. 114 crore. Revenue grew 51.1% y/y and EBITDA increased 14.6% y/y. EBITDA margin narrowed 330bps y/y to 10.3%.
-Mahindra & Mahindra’s Q2 FY22 revenue grew 5.9% y/y to Rs 13,305 crore. PAT increased 214% y/y to Rs 1,929 crore. EBITDA margin shrank 530bps y/y to 12.5%. The company targets a three-year revenue CAGR of 15–20% by 2025. It sees a tractor market share exceeding 40% by 2025.
-Nitin Spinners announced Q2 FY22 results. Revenue grew 55.7% y/y to Rs 664.7 crore. It reported a profit of Rs 87.4 crore y/y compared with a profit of Rs 11.9 crore. EBITDA margin came in at 26.7% versus 13% in Q2 FY21.