Yesterday, Nifty started the session flat and trended higher in the first half. It hit a fresh all-time high of 15,800, after which it staged a downside reversal and dropped 230 points to make an intraday low of 15,566. As the fall was more than 0.2% and volume was higher than in the previous session, it qualifies as a distribution day. However, the distribution day count remains unchanged as one expired at the close yesterday. All the sectoral indices closed in the red. Nifty Media (-2.1%) declined the most, followed by Realty (-1.7%) and PSU Bank (-1.4%). FIIs and DIIs were net sellers at Rs 846 crore and Rs 272 crore, respectively.
Nifty registered a distribution day for the first time since May 11. If the index falls further, adds a distribution day, and breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. We recommend a selective approach to increasing risk. Focus on quality ideas emerging out of sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels.
Bata India ’s Q4 FY21 results beat estimates on all fronts. PAT down 23% y/y to Rs 29.5 crore. Revenue declined 4.9% y/y to Rs 590 crore. Margin contracted 350bps y/y to 19%.
-Yields for the 10-year U.S. Bonds slid to around 1.5%, lowest in the last three months.
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