Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Nifty after a flat opening witnessed strong buying interest from investors throughout the day. It formed higher highs and higher lows in the hourly chart and closed 0.5% higher. In the process, the index hit a fresh high. Volume was higher than that of the previous session. The broader market halted its underperformance today. Both Midcap and Smallcap advanced 1% and 2.1% , respectively.

On the sectoral front, barring Nifty Pharma (-1.11%), all other sectors closed in the green. Nifty Media (+2.3%) was the top gainer, followed by Nifty IT (+0.5%) and PSU Bank (+1.3%). The advance-decline ratio favored advancers. Of 1,995 stocks traded, 1,275 stocks advanced, 216 stocks declined, and the remaining closed flat.

Currently, the distribution day count stands at three. Nifty is trading near its all-time high. 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. As there is weakness in the broader market, we recommend being selective when investing in new stock.

Key News
Page Industries announced its Q1 FY22 results. Revenue increased 76.1% y/y Rs 501.5 crore. PAT stood at Rs 10.9 crore against a loss of Rs 39.6 crore in Q1 FY21. The company reported an EBITDA of Rs 34.2 crore.

Bharat Petroleum reported its Q1 FY22 results. Revenue declined 7.8% q/q to Rs 70,922 crore. PAT was down to Rs 1,501.7 crore from Rs 11,940.1 crore in Q4 FY21.

Nmdc reported its Q1 FY22 results. Revenue increased 76.1% y/y Rs 6,512.2 crore. PAT stood at Rs 3,192.8 crore against a profit of Rs 533.3 crore in Q1 FY21. The company reported an EBITDA of Rs 4,177.6 crore.

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