SGX Nifty Indicates Muted Opening; Axis Bank and Maruti to Declare Q4 Results Today
April 27 2021
At 8:30 am IST, SGX Nifty Futures was trading at 14,498, compared with Nifty’s close of 14,485 yesterday.
Market Pulse: Rally Attempt
Global stock markets: Dow30, -0.2%; S&P 500, +0.2%; Nasdaq, +0.8%; Nikkei, -0.3%; Kospi, -0.3%
Yesterday, Nifty gapped higher as Banking stocks gained following ICICI Bank’s good Q4 FY21 results. During the day, Nifty was able to hold gains, but could not move beyond its opening hour high. We shifted the market to a {Rally Attempt} as the index managed to stay above its recent low (14,151) for three consecutive sessions. On the sectoral front, barring Nifty Pharma (-0.8%), all other sectors gained, led by Nifty Realty (+3.4%). Nifty Bank, Financial Services, and Metal closed 1.2–2.0% higher. FIIs were net sellers (Rs 1,111 crore), while DIIs were net buyers (Rs 1,030 crore).
Looking ahead, we would prefer to see a follow-through day before shifting the market to a Confirmed Uptrend. A follow-through day is a solid up session, generally a 1.5% or higher gain, with volume higher than the previous day. Should this occur, the focus will be on ideas breaking out of early-stage base patterns and showing the best relative strength with good accumulation. On the flip side, Nifty is still below its 50-DMA and about 6% off its last high. So, if it breaches its recent low of 14,151, the market will be moved back to a Downtrend.
Key News
Key Q4 FY21 results today: AXISBANK, MARUTI, BAJFINANCE and BRITANNIA
TECHM 's Q4 FY21 results missed estimates. Revenue in dollar terms rose 1.6% q/q. Revenue grew 0.7% q/q in constant currency terms. Operating profit rose 1% q/q to Rs 1,553 crore. EBIT margin expanded to 16% from 15.9% q/q.
HDFCLIFE ’s Q4 FY21 PAT grew 2.3% y/y to Rs 319 crore. New premiums of Rs 434.47 crore were collected during the quarter versus Rs 298.40 crore y/y. It sold 9.8 lakh new individual policies, registering 10% y/y growth.
SBICARD’s PAT doubled to Rs 175 crore in Q4 FY21 from Rs 84 crore y/y due to higher fee income, improved recoveries, and lower finance costs. Total income went down 2% y/y to Rs 2,468 crore.
O’Neil Market Condition Report
For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 30%; Rally Attempt, 12%; Uptrend Under Pressure, 52%; Downtrend, 6%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 65%; Rally Attempt , 10%; Uptrend Under Pressure , 25%; Downtrend, 0%.
Market Pulse: Rally Attempt
Global stock markets: Dow30, -0.2%; S&P 500, +0.2%; Nasdaq, +0.8%; Nikkei, -0.3%; Kospi, -0.3%
Yesterday, Nifty gapped higher as Banking stocks gained following ICICI Bank’s good Q4 FY21 results. During the day, Nifty was able to hold gains, but could not move beyond its opening hour high. We shifted the market to a {Rally Attempt} as the index managed to stay above its recent low (14,151) for three consecutive sessions. On the sectoral front, barring Nifty Pharma (-0.8%), all other sectors gained, led by Nifty Realty (+3.4%). Nifty Bank, Financial Services, and Metal closed 1.2–2.0% higher. FIIs were net sellers (Rs 1,111 crore), while DIIs were net buyers (Rs 1,030 crore).
Looking ahead, we would prefer to see a follow-through day before shifting the market to a Confirmed Uptrend. A follow-through day is a solid up session, generally a 1.5% or higher gain, with volume higher than the previous day. Should this occur, the focus will be on ideas breaking out of early-stage base patterns and showing the best relative strength with good accumulation. On the flip side, Nifty is still below its 50-DMA and about 6% off its last high. So, if it breaches its recent low of 14,151, the market will be moved back to a Downtrend.
Key News
Key Q4 FY21 results today: AXISBANK, MARUTI, BAJFINANCE and BRITANNIA
TECHM 's Q4 FY21 results missed estimates. Revenue in dollar terms rose 1.6% q/q. Revenue grew 0.7% q/q in constant currency terms. Operating profit rose 1% q/q to Rs 1,553 crore. EBIT margin expanded to 16% from 15.9% q/q.
HDFCLIFE ’s Q4 FY21 PAT grew 2.3% y/y to Rs 319 crore. New premiums of Rs 434.47 crore were collected during the quarter versus Rs 298.40 crore y/y. It sold 9.8 lakh new individual policies, registering 10% y/y growth.
SBICARD’s PAT doubled to Rs 175 crore in Q4 FY21 from Rs 84 crore y/y due to higher fee income, improved recoveries, and lower finance costs. Total income went down 2% y/y to Rs 2,468 crore.
O’Neil Market Condition Report
For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 30%; Rally Attempt, 12%; Uptrend Under Pressure, 52%; Downtrend, 6%.
For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 65%; Rally Attempt , 10%; Uptrend Under Pressure , 25%; Downtrend, 0%.
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