Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Global stock markets: Dow 30, -0.2%; Nasdaq, -1.2%; S&P 500, -0.5%; Nikkei, -1%, Kospi, -0.1%; Shanghai Composite, -0.2%
Yesterday, Nifty started the session on a positive note and moved sideways in the first hour. Subsequently, the indices booked profits, especially Pharma stocks. Yesterday’s action qualifies as a distribution day as the fall was over 0.2% with volume being higher than in the previous session. On the sectoral front, the majority of indices closed lower. Nifty Pharma (-4.3%) was the major decliner, followed by Nifty Pvt Bank (-0.9%) and Realty (-0.7%). Month-to-date in July, FIIs were net sellers with Rs 16,204 crore, while DIIs were net buyers worth Rs 12,468 crore.
The distribution day count has increased to three, Nifty has breached its 21-DMA, and is just 0.6% above its 50-DMA. If the index breaches its 50-DMA on higher volume and adds a couple of distribution days, we may change the market status to an Uptrend Under Pressure. We continue to recommend a selective approach to increasing risk. Focus on quality ideas emerging from sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels.
Interglobe Aviation’s Q1 FY22 loss widened to Rs 3,174.2 crore against a loss of Rs 2,844.3 crore in Q1 FY21. It came in below estimates. Revenue jumped to Rs 3,006 crore from Rs 766 crore y/y. Total debt increased to Rs 31,690.1 crore from Rs 23,551.6 crore reported last year.
Indusind Bank (Nse)’s Q1 FY22 PAT doubled y/y to Rs 1,016 crore. Income from retail banking rose 22% y/y to Rs 5,685 crore. NPA rose to 2.88% y/y of gross advances as against 2.53%.