Market Pulse: Confirmed Uptrend
Nifty50: Three Nifty Midcap100: Two Nifty Smallcap100: Three
Global stock markets: Dow 30, -0.002%; Nasdaq, +0.7%; S&P 500, +0.3%; Nikkei, +1.0%; Kospi, +1.1%; Shanghai Composite, -0.1%.
Yesterday, Nifty gapped higher, crossing 18,000. It continued to gradually advance throughout the day and made a high of 18,198. It closed in the top quartile of the day’s range. Tata Motors was the top rider on D-street, gaining more than 20%. The other Tata Group stocks also enjoyed the ride. Tata Power and Tata Chemicals advanced 14% each.
Though the benchmark and Midcap indices were moving higher, Smallcap was lagging. Of 2,065 stocks traded, 1,035 stocks advanced, 952 declined, and the remaining closed flat. On the sectoral front, barring Nifty Realty (-0.3%), all indices closed higher. Nifty Auto (+3.5%) was the top gainer. Nifty FMCG, IT, and Metal closed 0.8–1.5% higher.
The distribution day count currently stands at three. Further, Nifty is trading above all its key moving averages. We would like the index to continue trading above its key moving averages. We maintain a positive view on the market, but if the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, 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.
Infosys’s Q2 FY22 revenue grew 20.7% y/y and 5.7% q/q to $3,998M. In constant currency terms, revenue growth was 19.4% y/y and 6.3% q/q. Digital revenue grew 42.4% y/y in constant currency terms. Share of digital revenue increased to 56.1% from 53.9% in Q1 FY22. Net profit increased 11.9% y/y to $734M.
Mindtree (Nse)’s Q2 FY22 revenue grew 12.7% q/q and 34.1% y/y to $350.1M. Net profit increased 16% q/q and 57.3% y/y to $54M.
Wipro (Nse)’s Q2 FY22 revenue grew 7.8% q/q and 30.1% y/y to Rs 19,760 crore. Net profit contracted 9.6% q/q to Rs 2,930 crore.