Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Global stock markets: Dow 30, +0.04%; Nasdaq, +0.4%; S&P 500, +0.3%; Nikkei, +0.03%, Kospi, -1.61%; Shanghai Composite, -0.3%
Yesterday, Nifty witnessed strong buying interest from investors after a flat start. It formed higher highs and higher lows on the hourly chart and closed 0.5% higher. The index hit a fresh high in the process, with volume being higher than the previous session. The broader market halted its underperformance. Both Midcap and Smallcap advanced 1% and 2.1%, respectively. On the sectoral front, all sectors closed in the green, barring Nifty Pharma (-1.11%). FII’s net selling was Rs 212 crore, while DIIs net buying was Rs 308 crore.
Currently, the distribution day count stands at three. Nifty is trading near its all-time high. If the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, 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. As the broader market is volatile, we recommend being selective when investing in new stock.
Tata Steel’s Q1 FY22 PAT advanced to Rs 9,768 crore from a loss of Rs 4,648 crore in Q1 FY21. Revenue more than doubled y/y to Rs 53,371 crore. Margin expanded to 30.2% against 2.1% for the corresponding period last year.
Hero Motocorp’s Q1 FY22 gain stood at Rs 365 crore against Rs 61 crore in Q1 FY21. Revenue grew 84.7% y/y to Rs 5,487 crore. Margin expanded to 9.4% against 3.6% for the corresponding period last year.
-June IIP grew 13.6% y/y. The manufacturing sector grew 13%, the mining sector grew 23.1%, and the electricity sector grew 8.3%.