Market Pulse: Confirmed Uptrend
Nifty50: Three Nifty Midcap100: Three Nifty Smallcap100: Three
Global stock markets: Dow 30, -0.7%; Nasdaq, -0.6%; S&P 500, -0.7%; Nikkei, -0.7%; Kospi, -1.5%; Hang Seng, -0.9%.
Yesterday, Nifty opened around 40 points lower. However, it rebounded in the first hour itself and by noon, moved above the 18,000 mark. It made a high of 18,041, but failed to move higher and closed more than 100 points off highs as selling pressure increased in the last hour. Nifty is trading 1.5% and 5.0% above its upward trending 21- and 50-DMA, respectively.
The broader market outperformed the benchmark indices. Crude oil price rose to almost $84 per barrel and the INR continued to depreciate against the USD. On the sectoral front, barring Nifty IT (-3.3%), all sectoral indices closed higher. Nifty Bank, Auto, Realty, Metal, and Financial Services closed 1–2% higher. FIIs and DIIs were net sellers at Rs 1,303 crore and Rs 373 crore, respectively.
The distribution day count currently stands at three. Further, Nifty is trading above all its key moving averages. We would like the index to continue trading above its key moving averages. We maintain a positive view on the market 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.
Delta Corp announced its Q2 FY22 results. It posted a loss of Rs 22.57 crore against loss of Rs 54.91 crore in Q2 FY21. Revenue almost doubled y/y to Rs 74.72 crore.
HFCL’s Q2 FY22 PAT grew 62% y/y to Rs 85.94 crore. Revenue rose to Rs 1,122.05 crore from Rs 1,054.32 crore y/y.
Tata Metaliks (Nse)’s Q2 FY22 PAT was down 33% y/y to Rs 54.62 crore. Revenue rose to Rs 644.84 crore from Rs 519.63 crore y/y.
Bhansali Engr. (Nse) will report its Q2 FY22 results today.