Market Pulse: Confirmed Uptrend
Distribution Day Count: Four
Global stock markets: Dow 30, -0.4%; Nasdaq, +0.7%; S&P 500, -0.02%; Nikkei, +0.5%, Kospi, +0.03%; Shanghai Composite, +0.9%
Yesterday, Nifty opened the session on a flat note and selling pressure quickly gripped the markets. The index declined more than 250 points from the day’s high to make an intraday low of 15,513. However as the session progressed, some buying was observed at the lower levels, which pared most of the losses. Intraday, the index breached its 50-DMA, but found support around the level and reclaimed it. Yesterday’s action qualifies as a distribution day as the fall was over 0.2% with volume higher than that in the previous session. Barring Nifty Metal (+1.2%) and IT (+0.2%), all sectoral indices closed lower. Nifty PSU Bank (-1.9%) was the major decliner, followed by Nifty Auto (-0.9%) and Realty (-0.8%).
Two distribution days were added in consecutive sessions, raising the distribution day count to four. Nifty is just 0.3% above its 50-DMA. If the index breaches the 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.
Mahanagar Gas reported its Q1 FY22 results. Revenue declined 14.2% q/q to Rs 615 crore. PAT was down 4.1% q/q to Rs 204 crore. EBITDA softened 3.8% q/q to Rs 304 crore.
Nestle India reported its Q1 FY22 results. PAT grew 11% y/y to Rs 539 crore. Total income rose 13.53% y/y to Rs 3,506.2 crore.
Tata Coffee reported its Q1 FY22 results. Revenue declined 9.3% y/y to Rs 532.7 crore. PAT was down 20.3% y/y to Rs 28.6 crore. EBITDA softened 18.4% y/y to Rs 90.2 crore.