Market Pulse: Confirmed UptrendNifty50: Five Nifty Midcap100: Three Nifty Smallcap100: Six
Global stock markets: Dow 30, +0.6%; Nasdaq, +0.2%; S&P 500, +0.4%; Nikkei, -0.2%; Kospi, -1.1%; Shanghai Composite, +0.2%.
In a short week of trading due to Diwali. Nifty halted two weeks of decline. Trading volume also remained below average through the week. On Wednesday, which marked a weekly expiry, Nifty traded in a narrow range in the session’s first hour. Volatility gripped the market in the second half. All sectoral indices closed higher for the week. Nifty Realty (+9.6%) was the top gainer, followed by Nifty PSU Bank (+3.1%). Of the 2,045 stocks traded, 886 advanced, 1,080 declined, and the remaining closed flat. However, in Thursday’s Mahurat Trading, Nifty remained green throughout the session and ended higher by 0.5%.
Wednesday’s session will be considered a distribution day as the index fell more than 0.2% on volume higher than Tuesday's session. However, one distribution day expired on Wednesday owing to the 25-trading-session rule. Thus, the distribution day count remains at five. One more distribution day will expire today. If the market succumbs to selling pressure and breaches its 50-DMA, 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.Results Today: Aurobindo Pharma, Britannia Inds., Action Construction Equ., Balrampur Chini Mls(Nse), Automotive Axles, Andhra Paper and others
Bata India’s Q2 FY22 results slightly missed estimates. Revenue missed estimates by 14.6% and earnings by 32.7%, but margins came in 540bps above consensus estimates.
Divis Laboratories (Nse)’s Q2 FY22 earnings beat estimates, revenue beat estimates by 0.2% and earnings by 4.1%.
Eicher Motors’s Q2FY22 results beat estimates on all fronts. Revenue increased 5.4% y/y to Rs, 2,249 crore, profit increased 8.7% y/y to Rs. 373.2 crore. Operating margins contracted 120bps y/y to 20.9%..