Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Global stock markets: Dow30, +0.7%; S&P 500, +0.3%; Nasdaq, -0.1%; Kospi, -0.2%; Nikkei, -0.2%; Shanghai Composite, +0.1%
Last week, Nifty traded in the range of 15,500–15,900. It was volatile, but the range was narrow and volume was low. No distribution day was added during the week. Nifty breached its 21-DMA for two intraday sessions, but managed to close above it.
On a weekly basis, barring Nifty Energy (-1%) and FMCG (-0.8%), all sectoral indices closed higher. Nifty Auto, Bank, Metal, and IT closed 2–3.5% higher.
Nifty is only a few points below its all-time high and has near-term support near its rising 21-DMA. We will continue to monitor the action for signs of health or crack in the market and leaders. The distribution day count currently stands at three. If the index falls further, adds a distribution day, and breaches its key moving averages, we may change the market status to an Uptend Under Pressure. Focus on quality ideas emerging out of sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels.
Thyrocare Technologies: Docon Technologies and API Holdings, the parent company of unicorn Pharmeasy (online medical platform), are set to acquire a 66.1% stake in Thyrocare Technologies for Rs 4,546 crore.
Finolex Industries (Nse) posted Q4 FY21 results. It reported PAT of Rs 298.9 crore compared with a profit of Rs 58.7 crore for Q4 FY20. Revenue advanced to Rs 1,249.3 crore from Rs 768.7 crore in Q4 FY20.
India Glycols (Nse) posted Q4 FY21 results. It reported PAT of Rs 71 crore compared with a profit of Rs 17.9 crore for Q4 FY20. Revenue advanced to Rs 1,604.1 crore from Rs 1,350.4 crore in Q4 FY20.