Market Pulse: Confirmed Uptrend
Nifty50: Four Nifty Midcap100: Four Nifty Smallcap100: Five
Global stock markets: Dow 30, +0.2%; Nasdaq, -0.8%; S&P 500, +0.1%; Nikkei, -1%; Kospi, +0.2%; Shanghai Composite, +0.3%.
Last week, Nifty started on a positive note. It made a new all-time high of 18,604 on Tuesday, but the momentum changed as the index closed below this level in the next four sessions. On Friday, after opening higher, it pared gains and turned negative, making a new low for the week. As the volume was lower for Friday’s session it was not considered as a distribution day. During the week, broader market indices underperformed the general market. On the sectoral front, barring financial-related sectors, all others closed lower. Nifty FMCG (-6.1%) declined the most. Nifty Metal, Pharma, and Realty were down 5.2-5.5%.
One distribution was added during the last week and two were missed due to volume lower than the previous session. The distribution day currently stands at four. However, one distribution day is set to expire today. 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.
Icici Bank's result beat estimates and posted the highest ever PAT in a quarter for Q2 FY22. Deposits grew 17.3% y/y and 5.5% q/q. Loan grew 17.2% y/y and 3.6% q/q.
Reliance Industries’s Q2 FY22 PAT and revenue beat estimates. Margin briefly below estimates. EBITDA grew 37% y/y to Rs 26,020 crore. Retail business saw a strong recovery. Q2 retail revenue surpassed pre-pandemic levels. For Jio, ARPU stood at Rs 143.6 per subscriber per month. It improved from the previous quarter.