Market status: Downtrend
Global stock markets: Dow30, +0.7%; S&P 500, +1.1%; Nasdaq, +1.5%; Nikkei, +0.2%; Kospi, +0.5%
Last week, Nifty started on a negative note and market status was downgraded to a Downtrend. On Thursday, the index showed signs of upside reversal, but failed to hold gains on Friday. Nifty found good support near its 100-DMA over the last two weeks, but closed below it on Friday. On a weekly basis, barring Nifty Pharma (+0.3%) and Metal (+0.7%), all the major sectoral indices closed in the red. Nifty PSU Bank, FMCG, Realty, and IT closed 2.5–3.5% lower. On MTD basis, FIIs have turned net sellers, offloading equities worth Rs 7,600 crore, while DIIs were net buyers of shares worth Rs 7,960 crore.
On Thursday, Nifty’s correction low was reset to 14,151. However, as the index closed in the upper half on Thursday, it was considered Day 1 of an attempted rally. Nifty traded above the correction low on Friday, so we consider it Day 2. Looking forward, we will shift the market to a Rally Attempt if Nifty establishes a bottom and stays above 14,151 today. From there, we would prefer to see a follow-through day before shifting the market back to a Confirmed Uptrend. Should this occur, the focus will be on ideas breaking out of early-stage base patterns and showing best relative strength with good accumulation.
Sbi Cards And Payment Services, Hdfc Life Insurance Co, and Tech Mahindra will declare Q4 FY21 results today.
Icici Bank’s Q4 FY21 NII increased 17% y/y and 5.24% q/q to Rs 10,431 crore. PAT grew 261% y/y to Rs 4,402 crore. Provisions were down 51.7% y/y to Rs 2,883 crore. NIM declined 3bps y/y to 3.84%, but increased 17bps sequentially. Advances grew 14% y/y to Rs 7.33 lakh crore.
Hcl Technologies (Nse) posted a 6.1% dip in PAT to Rs 2,962 crore for Q4 FY21. Revenue grew 5.7% to Rs 19,642 crore. The company expects FY22 revenue to grow in double digits in constant currency terms.
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, 30%; Rally Attempt, 12%; Uptend Under Pressure, 52%; Downtrend, 6%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 65%; Rally Attempt, 10%; Uptend Under Pressure, 25%; Downtrend, 0%.