Nifty, +1.0%; Sensex, +1.0%; Nifty Midcap, +1.5%; Nifty Smallcap, +1.3%; Model Portfolio, -0.6%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Four
Nifty started the week on a strong note as it closed 0.9% higher on Monday and reclaimed its 21-DMA. It was then down in three consecutive sessions on low volume. Today, the index started on a positive note and reclaimed its 21-DMA. After a volatilite first hour, it trended up and closed above 18,100.
It was a mixed reaction on the sectoral front. Nifty IT (+2.8%) and Energy (+2.7%) were the top performers for the week. Financial-related sectors declined the most. Today, of the 2,054 stocks traded, 943 advanced, 1,030 declined, and the remaining closed flat.
Nifty reclaiming its 21-DMA is a good sign as it opens up possibilities for another upward move. The distribution day count currently 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. Nifty is trading less than 1% above its 50-DMA. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.
Knr Constructions announced its Q2 FY22 results. Revenue grew 28.4% y/y to Rs 842 crore. Profit declined 49.2% to Rs 80.4 crore. EBITDA margin came in at 21.1% against 26.1% in the corresponding quarter last year.
Hindalco Industries’s Q2 FY22 revenue increased 52.6% y/y to Rs 47,665 crore. Profit surged to Rs 3,417 crore from Rs 387 in Q2 FY21. The stock closed 3.2% higher.
Nbcc (India)’s Q2 FY22 revenue grew 38.9% y/y to Rs 1,912.6 crore. Profit surged 68.3% to Rs 72 crore. EBITDA margin improved to 2.7% from 1.1% a year ago.