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SGX Nifty Indicates Flat Opening; L&T and Dr Reddy to Declare Q4 Results Today

May 14 2021
At 8:00 am IST, SGX Nifty Futures was trading at 14,670, compared with Nifty’s close of 14,696, Wednesday.

Market Pulse: Confirmed Uptrend

Distribution Day CountThree

Global stock markets: Dow30, +1.3; S&P 500, +1.2%; Nasdaq, +0.7%; Kospi, +0.6%; Nikkei, +1.6%; Shanghai Composite, +0.6%

On Wednesday, Nifty opened flat and quickly succumbed to selling pressure and lost over 120 points within the first two hours of trading. The index pared most of its losses as some buying was seen at the lower levels. But as the selling pressure overtook the index again, Nifty closed near the day’s low. The index escaped a distribution day as the volume was slightly lower than yesterday's. There was a mixed action on the sectoral front. Nifty PSU Bank (+3.2%), Media (+0.7%), and Auto (+0.2%) closed higher. On the flipside, Nifty Metal (-2.9%) declined the most followed by financial-related stocks especially private banks.

On a technical perspective, Nifty breached its 50-DMA, which is not a good sign. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. If the index falls further, adds a distribution day, and breaches its key moving averages, we may change the market status to an Uptend Under Pressure. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.

Key Results Today: Larsen & ToubroDr. Reddy's LaboratoriesBalkrishna IndustriesCiplaEscorts, and others.

Key News:

Hindalco Industries’s subsidiary Novelis' Q4 PAT grew 186% y/y to $180M. Net sales increased 33% y/y to $3.6B.

Pidilite Industries(Nse)’s Q4 FY21 PAT and revenue came above consensus, while margin missed estimates. PAT nearly doubled y/y to Rs 307 crore.

Birla Corporation (Nse)’s Q4 FY21 PAT and revenue came above consensus, while margin missed estimates. PAT grew 27.7% y/y to Rs 249 crore. Revenue grew 26% y/y to Rs 2,132 crore. Margin contracted 200bps to 18.4%.

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