Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Global stock markets: Dow 30, -0.3%; Nasdaq, +0.2%; S&P 500, -0.1%; Nikkei, +0.2%, Kospi, -0.6%; Shanghai Composite, +0.04%
Yesterday, Nifty started the session on a positive note and moved above 16,300 in the opening hour. However, it quickly lost over 140 points to make an intraday low of 16,180. However, Nifty recovered around 100 points in the second half and closed almost flat. The broader market continued to underperform the index. On the sectoral front, there was mixed action. Nifty Bank, Financial Service, and IT closed 0.3–0.7% higher. On the flip side, Nifty Metal (-1.8%) and Realty (-0.7%) closed lower.
Currently, the distribution day count stands at three, and Nifty is trading at an all-time high. We will continue to follow the action of leaders and look for constructive behavior and potential entry points to develop. If the index adds a couple of distribution days, stages a reversal, or breaches key moving averages, we may change the market status to an Uptrend Under Pressure. We continue to recommend a selective approach to increase risk. Focus on quality ideas emerging from proper bases with the RS line trending higher. Reducing exposure to stocks breaking below their 21- or 50-DMA is important.
Shree Cement’s Q1 FY22 PAT advanced to Rs 661.7 crore from a profit of Rs 370.8 crore in Q1 FY21. Revenue grew 47.9% y/y to Rs 3,449.5 crore. EBITDA margin fell to 29.4% versus 30% in Q1 FY21.
Bombay Dyeing & Mnfg.’s Q1 FY22 loss stood at 107.9 crore from a loss of Rs 129.1 crore in Q1 FY21. Revenue grew to Rs 380.8 crore as against Rs 91.2 crore for the same period last year.
Balrampur Chini Mls(Nse)’s Q1 FY22 PAT stood at Rs 76.9 crore against a profit of Rs 139.1 crore in Q1 FY21. Revenue was down 20.3% y/y to Rs 1,140.4 crore.