SGX Nifty Indicates Higher Opening; Avenue Supermarts and CSB Bank Released June Quarter Updates

At 8:15 am IST, SGX Nifty Futures was trading at 15,838, compared with Nifty’s close of 15,722 on Friday.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Four

Global stock markets: Dow30, +0.4%; S&P 500, +0.8%; Nasdaq,+0.8%; Kospi, +0.4%; Nikkei, -0.6%; Shanghai Composite, +0.2%

Nifty traded in the range of 15,636–15,915 last week. It was volatile but the range was narrow and volume was low. It closed lower in four out of five sessions. One distribution day was added on Tuesday. Nifty breached its 21-DMA on Wednesday, but traded very close to it and did not fall further. The trend during all sessions was similar during the week. Nifty opened either flat or positive and shed its gains before the session ended. However, there was some last-hour buying on Friday, which helped Nifty close in the positive zone. On a weekly basis, barring Nifty Pharma (+3.3%) and FMCG (+0.6%), all sectoral indices closed lower. Nifty Bank, Metal, and Financial Services closed 1.5–1.8% lower.

The distribution day count is currently elevated to four. If the index falls further, adds a couple of distribution days, and breaches its 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 out of sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels.

Key News

Avenue Supermarts released the June quarter update. Revenue from operations increased 31.3% y/y to Rs 5,031.8 crore. Number of stores stood at 238.

Csb Bank released the June quarter update. Total deposits increased 14.2% y/y to Rs 18,652 crore (provisional). Out of which CASA deposits grew 29.2% which is a good sign. Gross advances increased 23.7% to Rs 14,146 crore.