Market Pulse: Confirmed Uptrend
Nifty50: Three Nifty Midcap100: Three Nifty Smallcap100: Two
Global stock markets: Dow 30, +0.9%; Nasdaq, +1.3%; S&P 500, +1.1%; Nikkei, -1%; Kospi, -1%; Hang Seng, -1.1%.
Yesterday, Nifty opened around 30 points lower. It was resilient compared to fall in the U.S. and Asian markets. In the first half, Nifty was trading in a narrow range of 30–40 points. However, in the second half, it started to gain some strength and moved above 17,800. It closed in the top quartile of the day’s range. The volume was comparatively higher. Recovery in the second half was led by Reliance, banks, and IT stocks.
There was a mixed action on the sectoral front. Nifty Realty (-1.4%) was the top loser. Nifty Metal, Pharma, and PSU Banks closed 0.1–0.5% lower. On the flip side, Nifty Oil and Gas (+2.8%) was the top gainer. Nifty Bank, Auto, Financial Services, and IT closed 0.4–1.0 higher.
Nifty staged a reversal after closing near its 21-DMA last week. We would like the trend to continue to begin the next leg of the rally. On the flip side, the distribution day count rose to three last week. 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.
Moody’s upgraded India’s ratings outlook to stable from negative, affirms BAA3 ratings.
Bajaj Finance reported a 32.4% y/y increase in deposits to Rs 28,700 crore. Further, assets under management stood at Rs 1.16 lakh crore.
Marico witnessed revenue growth in low twenties in Q1 FY22. International business posted double-digit constant currency growth.