Market Pulse: Confirmed Uptrend
Nifty50: Three Nifty Midcap100: Four Nifty Smallcap100: Five
Global stock markets: Dow 30, +0.2%; Nasdaq, +0.9%; S&P 500, +0.5%; Nikkei, +1.8%; Kospi, +0.6%; Shanghai Composite, +0.1%.
Yesterday, Nifty started the day on a negative note and continued to trade lower in the first hour of the session. The index made a low of 17,968 and then staged a recovery from that point. Nifty managed to end the session on a positive note at 18,125. ICICI Bank remained the saving grace of the day as the stock moved up 11.5% during the session.
The broader market indices remained under pressure. Of 2,063 stocks traded, 535 stocks advanced, 1,477 declined, and the remaining closed flat. Financial indices were the top performers on the sectoral front, with Bank Nifty and Nifty PSU Bank adding 2.2% and 1.1%, respectively. On the flip side, Nifty Realty and Nifty Auto slipped 2.8% and 1.8%, respectively. FIIs net selling was Rs 2,469 crore, while DIIs were net buyers (Rs 2,390 crore).
One distribution day expired yesterday, bringing the count to three. The market remains in an Uptrend, but if the index adds a couple of distribution days, stages a reversal, or breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Reducing exposure to stocks breaking below their 21- or 50-DMA on higher volume is important.
Results Today: Ambuja Cements, Axis Bank, Bajaj Finance, Birlasoft, Cipla, and others.
Ceat’s Q2 FY22 PAT missed estimates, while revenue exceeded estimates. OAT was down 77% y/y to Rs 42 crore. Revenue grew 24% y/y to Rs 2,451 crore. Margin contracted 580bps y/y to 9%.
Tech Mahindra’s Q2 FY22 results were largely in line with estimates. PAT was down 1% q/q to Rs 1,339 crore. Revenue grew 6.7% q/q to Rs 10,881 crore.
-ESAF Small Finance Bank gets SEBI node for Rs 998 crore IPO.