Market Pulse: Confirmed Uptrend
Nifty50: Four Nifty Midcap100: Three Nifty Smallcap100: Six
Global stock markets: Dow 30, -0.7%; Nasdaq, -1.7%; S&P 500, -0.8%; Nikkei, +0.8%; Kospi, -0.5; Shanghai Composite, +0.6%.
Yesterday, Nifty gapped down at the start of the trading session and remained range-bound for most of the day. It made an intraday low of 17,915, then staged an upward recovery in the latter half of the day. However, it failed to close on a positive note. Metal stocks remained key laggards, with Hindalco and Tata Steel declining 3.4% and 2.9%, respectively.
Most sectoral indices succumbed to selling pressure, with Nifty PSU Bank and Nifty Metal declining 2.4% and 1.8%, respectively. On the other hand, Nifty Auto and Nifty Pharma closed 0.6% and 0.4% higher, respectively. The distribution day count currently stands at four. 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: Godrej Csm.Products(Nse), Hindustan Aeronautics, Indiabulls Housing Fin, Natco Pharma, Endurance Technologies, Astral, and others
Pidilite Industries(Nse)’s Q2 FY22 results beat estimates. PAT increased 5.1% y/y to Rs. 374.6 crore, revenue increased 39.7% y/y to Rs. 2,626.3 crore. EBITDA increased 7.2% y/y but EBITDA margins contracted 640bps y/y to 20.9%.
Metropolis Healthcare’s Q2 FY22 results missed estimates on all fronts. PAT declined 3.5% y/y to Rs. 58.4 crore, revenue increased 4.9% y/y to Rs. 302.6 crore. EBITDA declined 0.9% y/y and margins contracted 170bps y/y.
Berger Paints India’s Q2 FY22 results beat estimates. PAT decreased 0.8% y/y to Rs. 219.2 crore, revenue increased 27.7% y/y to Rs. 2,225 crore. EBITDA increased 5.6% y/y but EBITDA margins contracted 330bps y/y to 15.9%.