Market Pulse: Confirmed Uptrend
Distribution Day Count: Four
Global stock markets: Dow 30, -0.3%; Nasdaq, +0.1%; S&P 500, -0.2%; Nikkei, -0.9%, Kospi, -0.2%; Shanghai Composite, -0.3%
Yesterday, Nifty started the session with a gain of more than 100 points. It then consolidated its gains and traded sideways for most of the session. The index turned volatile in the last hour, but managed to close near the day’s high. It reclaimed its 21-DMA and headed toward a fresh high. All the sectoral indices closed higher. Nifty Realty (+4.8%) led the gains, followed by Nifty Auto (+1.3%) and IT (+1.1%). All the other sectoral indices closed 0.1–0.8% higher.
Currently, the distribution day count stands at four. Nifty is trading above its 50-DMA and closed just below its 21-DMA on Friday. Reclaiming its 21-DMA is crucial for a further upward move. On the flip side, if the index breaches its 50-DMA on higher volume and adds a couple of distribution days, we may change the market status to an Uptrend Under Pressure. We continue to recommend a selective approach to increasing risk. Focus on quality ideas emerging from sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels.
Balaji Amines Limited’s Q1 FY22 PAT increased 28.7% y/y to Rs 97.39 crore from Rs 31.58 crore in Q1 FY21. Revenue advanced to Rs 450.7 crore. Margin expanded to 31.9% versus 24.3% in Q1 FY21.
RBL Bank in Q1 FY22 posted a standalone loss of Rs 459.5 crore versus a profit of Rs 141.2 crore in Q1 FY21. Net interest income moderated to Rs 969.5 crore y/y from Rs 1,041.3 crore.
Tata Motors announced a hike in prices of its passenger vehicles, by an average 0.8%, depending on the variant and model, effective August 3.