Market Pulse: Confirmed Uptrend
Nifty50: Three Nifty Midcap100: Four Nifty Smallcap100: Five
Global stock markets: Dow 30, -0.7%; Nasdaq, +0.02%; S&P 500, -0.5%; Nikkei, -0.9%; Kospi, -0.2%; Shanghai Composite, -1%.
Yesterday, Nifty remained positive in the first half of the day. After making an intraday high of 18,342 in the latter half of the day, the index reversed and continued to trade lower on account of expiry pressure and finally ended the day in the red. UPL and Asian Paints remained top gainers for the day, advancing 3.7% and 4.1%, respectively. Broader markets continued to outperform Nifty for the second consecutive day. On the sectoral front, it was a mixed bag. Nifty Metal and Bank Nifty fell 1.5% and 0.9%, respectively, while Nifty PSU bank and Nifty IT gained 2.1% and 1%, respectively. FIIs remained net sellers (Rs 1,913 crore), while DIIs net buying was worth Rs 472 crore.
Nifty escaped distribution as yesterday’s volume was lower. So, the distribution day count stays at three. The market remains in a Confirmed Uptrend, but if the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, 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: Aavas Financiers, Adani Green Energy, Adani Total Gas, Bajaj Finserv, Blue Star, Dlf (Nse), Guj.Narmada Vly.Fcm., Gujarat Gas, J K Tyre & Inds., Laurus Labs, Maha.& Maha.Finl.Svs., Marico, Ntpc, RBL Bank, Sbi Cards And Payment Services, Tata Power, and others.
Itc’s Q2 FY22 PAT and margin missed estimates. Cigarette volume grew 9% y/y. Margin contracted 25bps y/y to 34.05%.
United Breweries’s Q2 FY22 PAT and margin missed estimates. Revenue came in line. PAT increased to Rs 80.6 crore against Rs 8 crore y/y. Revenue grew 58% q/q to Rs 1,426 crore.
Dalmia Bharat’s Q2 FY22 revenue came above estimates. PAT and margin missed estimates. PAT grew 19.4% y/y to Rs 209 crore. Margin expanded 230bps y/y to 24.1%. Revenue was down 1% y/y to Rs 2,577 crore.
Bajaj Auto’s Q2 FY22 beat estimates on all fronts. PAT and revenue grew 12% and 22% y/y, respectively.
Larsen & Toubro’s Q2 FY22 revenue missed estimates. Margin came in line with estimates. Revenue grew 12% y/y. PAT grew 46% y/y. Margin expanded 80bps y/y to 11.5%.
Adani Ports and Special Economic Zone’s Q2 FY22 missed estimates on all fronts.