Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Global stock markets: Dow 30, -0.9%; Nasdaq, -0.8%; S&P 500, -0.8%; Kospi, -1.2%; Nikkei, -1.8%; Shanghai Composite, -0.8%
Last week, Nifty started on a positive note and in the process retook its 21-DMA on Tuesday. It was up for four consecutive sessions, but ended flat on Friday after making a new all-time high of 15,962. Barring Nifty Media (-1.3%) and PSU Bank (-0.3%), all the sectoral indices closed higher. Nifty Realty (+8.6%) was the top gainer followed by Nifty IT and Metal, all of which closed 2.2–2.6% higher.
Nifty is trading 1% above its 21-DMA after having recently reclaimed it. It is crucial for the index to hold and trade above this level. On the flip side, the distribution day count stood at three. If the index falls further and adds a couple of distribution days, 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.
Hdfc Bank’s Q1 FY22 net profit grew 16% y/y to Rs 7,729.62 crore. This was lower than estimates. NII grew 8.6% y/y to Rs 17,009 crore. GNPA rose 15bps q/q to 1.47% of gross advances. NNPA ratio was at 0.48% versus 0.40% at the end of Q4 FY21. Total provisions increased 24% y/y to Rs 4,831 crore. The stock is forming a stage-one cup base and trading 2.5% above its 50-DMA.
Just Dial: Reliance Retail Ventures, the subsidiary of Reliance Industries, will take a controlling stake in Just Dial for Rs 3,497 crore.