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SGX Nifty Indicates Flat Opening; Larsen & Toubro, Alembic Pharmaceuticals, and Heidelberg Cement to Report Today

Posted Date: July 22 2020
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At 8:00am IST, the SGX Nifty Futures was trading at 11,179, compared with Nifty’s close of 11,162 yesterday.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, +0.6%; S&P 500, +0.2%; Nasdaq, -0.8%; KOSPI, +0.3%; Nikkei, -0.4%; Hang Seng, +0.1%

Yesterday, Nifty gapped up by about 100 points for the second consecutive day. Again, the day’s trading range was narrow compared with the normal trading range. Volume was higher as compared with the previous session. Broader market indices, Nifty Midcap (+0.1%) and Smallcap (+0.4%), underperformed the market.

On the sectoral front, barring Nifty Pharma (-1.5%) and FMCG (-0.8%), all the indices closed in the green. Nifty PSU Bank (+2.1%) was the biggest gainer, followed by financial-related sectors. FIIs’ net buying was Rs 2,266 crore while DIIs’ net selling was Rs 727 crore.

The Indian market remains in a Confirmed Uptrend. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, and it is an environment where outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of leading stocks and keep an open mind as to how it unfolds. We will wait for solid entry points before buying.

Key News

Larsen & ToubroAlembic Pharmaceuticals, and Heidelbergcement India will report their Q1 FY21 results today.

Polycab India released Q1 FY21 results. PAT stood at Rs 117.6 crore as against Rs 135.2 crore for the same period last year, while total revenue declined to Rs 976.6 crore as compared with Rs 1,951 crore a year ago.

Hindustan Unilever released Q1 FY21 results. PAT advanced 2.1% y/y to Rs 1,881 crore, while revenue was up 4.4% y/y to Rs 10,560 crore. On the flip side, margin fell 120bps to 25%.

Axis Bank released Q1 FY21 results. PAT contracted 19% y/y to Rs 1,112.2 crore, while NII was up 20% y/y to Rs 6,985.3 crore. The bank reported better numbers in terms of asset quality, with GNPA and NNPA down 2.2% and 20.4% q/q, respectively.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows:Confirmed Uptrend, 54%; Rally Attempt, 0%; Uptrend Under Pressure, 42%;Downtrend, 4%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 46%; Rally Attempt, 0%; Uptrend Under Pressure, 54%; Downtrend, 0%.

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