Market Pulse: Confirmed Uptrend
Nifty50: Four Nifty Midcap100: Three Nifty Smallcap100: Six
Global stock markets: Dow 30, -0.4%; Nasdaq, +0.5%; S&P 500, +0.1%; Nikkei, +1.1%; Kospi,+1.6%; Shanghai Composite, -0.1%.
Yesterday, Nifty gapped lower below 18,000 at the start of the trading session and remained under pressure for most of the day. It made an intraday low of 17,800. As the volume was lower than the previous day’s session, we will not mark it as a distribution day. The broader market was also under selling pressure. On the sectoral front, barring Nifty Metal (+0.4%), all sectoral indices closed in the red. Nifty Realty (-2.4%) was the top loser. Nifty Bank, Auto, Financial Services, FMCG, and Pharma closed 1–1.4% lower.
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. Nifty is trading less than 1% above its 50-DMA. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.
Nmdc’s Q2 FY22 results beat estimates. PAT exceeded estimates by 13.3%, revenue by 10.6%. EBITA margins came in at 45.8% against consensus estimates of 43.7%.
Zee Entertainment Ents.’s Q2 FY22 results missed estimates. Revenue increased 14.9% y/y to Rs. 1,978.8 crore, PAT increased 187% y/y to Rs. 270.2 crore. EBITDA increased 31.4% y/y and margins contracted 280bps y/y.
Piramal Enterprises reported Q2 FY22 results. PAT decreased 33.3% y/y to Rs. 419.2 crore, revenue declined 5.9% y/y to Rs. 3,105.5 crore. Provisions at 4% of AUM against 5.8% for Q1 FY22. NPA ratio at 1.5% against 2.2% for Q1 FY22.