Market Pulse: Confirmed Uptrend
Distribution Day Count: Four
Global stock markets: Dow 30, +0.8%; Nasdaq, +0.8%; S&P 500, +0.6%; Nikkei, -0.1%, Kospi, +1%; Shanghai Composite, +0.3%
Yesterday, Nifty started the session on a positive note, trended higher as the day wore on, and crossed the 16,000 mark. It further extended gains and closed above 16,100. As the gain was more than 1.5% and volume higher, we would consider it an additional follow-through day. However, the broader market underperformed. Nifty Midcap closed flat, while Smallcap closed in the red. On the sectoral front, barring Nifty Metal and Media, all others closed in the green. Nifty Bank, Financial Services, Auto, FMCG, and IT closed 1.2–1.7% higher.
Currently, the distribution day count stands at four. Nifty is trading at an all-time high. The additional follow-through action indicates strength, but the broader market action was not very constructive. We will continue to follow the action of leaders and look for constructive behavior and potential entry points to develop. If the index adds a couple of distribution days, stages a reversal, and breaches key moving averages, 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.
Tata Consumer Products’s Q1 FY22 PAT decreased 42.1% y/y to Rs 200.2 crore from Rs 345.6 crore in Q1 FY21. Revenue advanced 10.9% to Rs 3,008.5 crore. Margin contracted to 13.3% versus 17.8% in Q1 FY21.
Bharti Airtel’s Q1 FY22 PAT decreased 62.7% q/q to Rs 283.5 crore from Rs 759.2 crore in Q4 FY21. Revenue advanced 4.3% q/q to Rs 26,853 crore. Margin expanded to 49.1% versus 48.9% in Q4 FY21.
Shipping Corp.Of India in Q1 FY22 posted PAT of Rs 158.5 crore versus a profit of Rs 336.9 crore in Q1 FY21. Total income moderated 10.1% to Rs 1,028 crore y/y from Rs 1,143.5 crore.