SGX Nifty Indicates Higher Opening; Auro Pharma and Britannia to Announce Results Today

At 8:10 am IST, SGX Nifty Futures were trading at 18,007, compared with Nifty’s close of 17,916, on Mahurat Trading (Thursday).

Market Pulse: Confirmed Uptrend

Distribution Day Count:

Nifty50: 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

Key News

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%.

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