Market Pulse: Confirmed Uptrend
Global stock markets: Dow30, +0.9%; S&P 500, +0.8%; Nasdaq, +0.4%; Kospi, +0.4%; Nikkei, +0.3%; Shanghai Composite, +0.1%
Yesterday, Nifty started the session on a positive note, opening around 50 points higher. However, with a highly volatile first half, Nifty turned negative momentarily. Good buying rescued the afternoon session and the index closed near the day’s high, thus moving near its 50-DMA (14,733). Further upside can be expected if it closes above its 50-DMA on high volume. The advance-decline ratio was in favor of advancers. Of the 2,251 stocks traded, 1,067 advanced, 790 declined, and the rest remained unchanged.
On the sectoral front, barring Nifty PSU Bank (-1.1%) and Pharma (-0.2%), all other sectors closed in the green. Nifty Metal (+2.6%) was the top gainer, followed by Nifty Auto (+1.8%).
Looking ahead, Nifty retaking its 50-DMA is key for further upside. However, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. If the index falls further and adds a couple of distribution days, we may change the market status to an Uptend Under Pressure. On the flip side, if Nifty reclaims its 50-DMA and moves higher, stocks that are breaking out of Consolidation with higher relative strength and superior fundamentals can do well. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.
TATACONSUM’s Q4 FY21 results were below estimates. Revenue grew 26.3% y/y to Rs 3,037.0 crore. PAT was down 29.5% to Rs 53.9 crore. EBITDA margin contracted 290bps to 9.9%.
Hero Motocorp’s Q4 FY21 results beat estimates. Revenue rose 39.2% y/y to Rs 8,686 crore. PAT increased 39.4% to Rs 865 crore. EBITDA margin expanded 330bps to 13.9%.