Market Pulse: Confirmed Uptrend
Nifty50: Four Nifty Midcap100: Four Nifty Smallcap100: Seven
Global stock markets: Dow 30, +0.3%; Nasdaq, +0.6%; S&P 500, +0.2%; Nikkei, -0.4%; Kospi, +1.5%; Shanghai Composite, -0.2%.
Yesterday, Nifty started the session with gains of more than 100 points but was highly volatile in the first hour. After breaching 17,700 briefly, the index found good buying, advancing about 250 points to make the day’s high of 17,954. As Monday’s volume was lower than Friday’s, we will not consider it an additional follow-through day (FTD). All sectoral indices closed higher yesterday. Nifty Realty (+4.0%) was the top gainer, followed by Nifty Metal (+3.1%), IT (+2.6%), and Media (+2.6%). Of the 2,063 stocks traded, 1,399 advanced, 596 declined, and the remaining closed flat.
The distribution day count currently stands at four. The market remains in a Confirmed Uptrend. With yesterday’s action, Nifty is just 100 points below its 21-DMA. If the index retakes its 21-DMA, we can expect a further rally and the index to hit a new all-time high. However, if it 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.
-India’s merchandise exports in April-October 2021 was $232.58B, an increase of 54.5% y/y.
Tata Motors’s Q2 FY22 result missed estimates. Revenue increased 14.7% y/y, EBITDA declined 32.5% y/y, and margins contracted 470bps y/y. Loss increased to Rs. 4,415 crore against a loss of Rs. 307.3 crore in Q2 FY21.
I F B Agro Industries announced Q2 FY22 results. Revenue grew 46.9% y/y to Rs 664 crore. PAT grew 26.9% y/y, and margin contracted 80bps to 3.6%.