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SGX Nifty Indicates Positive Opening; Britannia and HCL Tech to Report Q1 Results Today

Posted Date: July 17 2020
Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 10,783, compared with Nifty’s close of 10,739 on yesterday.

Market status: Confirmed Uptrend

Global stock markets: Dow 30, -0.5%; S&P 500, -0.3%; Nasdaq, -0.7%; KOSPI, +0.7%; Nikkei, -0.1%; Hang Seng, +0.9%

Yesterday, Nifty opened on a higher note but quickly succumbed to selling pressure and made the day’s low within 15 minutes. It pared its losses and traded in the green for most part of the session. Last hour buying helped Nifty to close near the day’s high. The broader market indices, Nifty Midcap (+0.6%) and Smallcap (-0.1%), underperformed the Nifty. FIIs’ net selling was Rs 1,091 crore while DIIs’ net buying was Rs 1,660 crore.

On the sectoral front, Nifty IT (+2.8%) continued to lead the market and is the biggest gainer for two consecutive sessions. Followed by Nifty Pharma, Auto and Bank closed 1.2–1.7% higher. On the flip side, Nifty Media (-1.7%) was the only sectoral index to close lower. Market breadth was inclined toward decliners. Of 2,157 stocks traded, 743 advanced, 1,072 declined, and the remaining traded flat. The Indian market remains in a Confirmed Uptrend. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, and it is an environment where outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of leading stocks and keep an open mind as to how it unfolds. We will wait for solid entry points before buying.

Key News

CYIENT’s Q1 FY21 results beat estimates on all fronts. PAT was up 76% q/q to Rs 81.4 crore, while total revenue fell 7.6% q/q to Rs 991 crore. Margins expanded 90bps q/q to 5.1%.

L&T Finance Holdings reported 73% decline in Q1 FY21 PAT at Rs 148 crore. Contingency provisioning was higher. The company strengthened its balance sheet through provisions of Rs 577 crore over and above the GS3 (gross stage 3) provisioning. Gross NPA fell to 5.72% from 5.24% a year ago.

-U.S. retail sales rose 7.5% in June versus the 5.0% increase expected.

Key Q1 Results: Britannia Inds.Hcl Technologies (Nse), and Icici Lombard General Ins Co

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 58%; Rally Attempt, 0%; Uptrend Under Pressure, 38%; Downtrend, 4%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 35%; Rally Attempt, 0%; Uptrend Under Pressure, 65%; Downtrend, 0%.

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