Market Pulse: Confirmed Uptrend
Nifty50: Four Nifty Midcap100: Five Nifty Smallcap100: Six
Global stock markets: Dow 30, +0.3%; Nasdaq, +0.3%; S&P 500, +0.2%; Nikkei, +2.1%; Kospi, +0.4%; Shanghai Composite, +0.1%.
Last week was very volatile for the markets, with Nifty declining 2.5%. It was the highest weekly loss since March 2021. On Monday, Nifty rebounded from its 21-DMA and closed higher on Tuesday as well. But, profit booking gripped the markets in the subsequent three sessions. On Friday, following a flat start, the benchmark quickly slipped 200 points in the first 10 minutes of the session. Some buying was seen at the lower levels, and the index rapidly gained 300 points in the next two hours, thus marking the day’s high of 17,915. However, the top was sold, and the index erased all the 300 points, closing near the day’s low.
On the sectoral front, barring Nifty PSU Bank (+0.1%), all sectoral indices closed lower for the week. Nifty Energy (-4.3%) was the top loser followed by Nifty Pvt Bank (-3.6%) and Nifty Bank (-3.0%). Nifty Pharma and FMCG are in an Uptrend Under Pressure while the remaining are in a Confirmed Uptrend.
During the week, Nifty added one distribution day and escaped two due to lower volume. The distribution day count currently stands at four. The market remains in a Confirmed Uptrend, but is just about 100 points above its 50-DMA. If the index breaches its 50-DMA, 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.
Idfc First Bank’s Q2 FY22 PAT grew 49.6% y/y to Rs 151.7 crore. NII grew 27.4% y/y to Rs 2,722 crore. GNPA was at 4.27% versus 4.61% q/q.
Indian Oil’s Q2 FY22 PAT grew 7% y/y to Rs 6,360 crore. Revenue grew 14.1% y/y to Rs 1.35 lakh crore. Margin contracted 160bps y/y to 7.8%.
Bharat Petroleum’s Q2 FY22 results beat estimates. Revenue grew 15% y/y to Rs 81,536 crore. PAT grew 80% y/y to Rs 2,694 crore. Margin expanded 90bps to 5.5%.
Bandhan Bank’s Q2 FY22 result missed estimates. It reported a loss of Rs 3,008 crore. GNPA increased 262 bps q/q to 10.8%.