Yesterday, Nifty opened slightly higher and hit a fresh all-time high of 15,778. Within the first hour, it lost around 100 points and made a low of 15,680. As the session progressed, Nifty traded higher with volatility. Of Nifty50 stocks, 54% advanced. On the sectoral front, there was a mixed action. Nifty IT (+1.2%) advanced the most, followed by Media (+0.9%) and Pharma (+0.9%). On the flip side, financial-related indices closed 1.0–1.5% lower. FIIs were net buyers at Rs 1,422 crore, while DIIs were net sellers at Rs 1,640 crore.
Nifty making a new high, the broader market back in momentum, distribution day count down to two, and no distribution day after May 11 are positive signs for a sustainable rally. However, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. If the index falls further, adds a distribution day, and breaches its key moving averages, we may change the market status to an Uptrend 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.
Key News: Welspun has received multiple orders of approximately 164 KMT valuing close to Rs 1,725 crore. With these orders, the company’s order book stands at 525 KMT valued at approximately Rs 4,800 crore, after considering execution up to May 2021.
Galaxy Surfcants ’s Q4 revenue increased 19.7% y/y to Rs 786 crore. PAT grew 25.3% y/y to Rs 79 crore. For FY21, EBITDA/MT grew 16.4% y/y to Rs 19,465.
What do you think? Please email us any questions or comments.
Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.For more information, see our Legal disclosures here.