Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Global stock markets: Dow 30, +0.6%; Nasdaq, -0.2%; S&P 500, +0.3%; Nikkei, +0.2%, Kospi, +0.02%; Shanghai Composite, -0.1%
Nifty started the session on a positive note yesterday and hit an intraday high of 16,338 within the first five minutes of the session. Selling pressure gripped markets later in the day as the index lost around 160 points (1%) from the intraday high. However, the benchmark staged a reversal and pared losses to close the session on a flat note. The broader market continued to underperform the index. On the sectoral front, Nifty Metal (+3.1%) was the top gainer, followed by Nifty PSU Bank (+0.5%) and Realty (+0.3%). On the flip side, Nifty Pharma (-1.5%) was the major decliner.
Currently, the distribution day count stands at three, with Nifty trading at an all-time high. However, the broader markets are showing signs of weakness. 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, or breaches key moving averages, we may change the market status to an Uptrend Under Pressure. We continue to recommend a selective approach to increase risk. Focus on quality ideas emerging from proper bases with RS line trending higher. It is crucial to reduce exposure to stocks breaking below their 21- or 50-DMA.
Companies Announcing Results Today: Tata Steel, Hero Motocorp, Bharat Petroleum, Aurobindo Pharma, and others.
Cummins India (Nse)’s Q1 FY22 PAT advanced to Rs 247 crore from a profit of Rs 53 crore in Q1 FY21. Revenue grew 52.6% y/y to Rs 1,195 crore. EBITDA margin expanded to 12.4% against 0.4% for the corresponding period last year.
Bata India’s Q1 FY22 loss stood at Rs 69.4 crore. revenue grew 97.6% y/y to Rs 267crore. It reported EBITDA loss of Rs 31.6 crore.
Nesco’s Q1 FY22 PAT stood at Rs 42.4 crore against a profit of Rs 51.3 crore in Q1 FY21. Revenue was up 4.8% y/y to Rs 72.7 crore. EBITDA margin contracted to 63% as against 71.6% for the corresponding period last year.