Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Tata Group is not only trending in air (for Air India) but also on the ground on D-Street as the current movers and shakers of the market. Tata Motors gained almost 10% and was the top gainer. On the flip side, TCS stock nosedived more than 6% and was the top loser, after disappointing Q2 FY22 results.

Today, Nifty opened around 40 points lower. However, it rebounded in the first hour itself and by noon, moved above the 18,000 mark. It made a high of 18,041, but failed to move higher and closed more than 100 points off highs as selling pressure increased in the last hour. Nifty is trading 1.5% and 5% above its upward trending 21- and 50-DMA, respectively.

The broader market outperformed the benchmark indices. Crude oil price rose to almost $84 per barrel and the INR continued to depreciate against the USD. On the sectoral front, barring Nifty IT (-3.3%), all indices closed higher. Nifty Bank, Auto, Realty, Metal, and Financial Services closed 1–2% higher. The advance-decline ratio favored advancers. Of 2,082 stocks traded, 1,121 stocks advanced, 901 declined, and the remaining closed flat.

The distribution day count currently stands at three. Further, Nifty is trading above all its key moving averages. We would like the index to continue trading above its key moving averages. We maintain a positive view on the market but 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.

Key News

Ramkrishna Forgings’s Q2 FY22 PAT increased to Rs 44 crore y/y against Rs 1.4 crore. Revenue almost doubled y/y to Rs 578 crore. Margin expanded 4.6% y/y to 22.6%.

Saregama India (Nse)’s Q2 FY22 PAT grew 20% y/y to Rs 33.8 crore. Revenue grew 34.2% y/y to Rs 145 crore. Margin contracted 3.5% y/y to 30.6%.

Power Mech Projects bagged orders worth Rs 448.6 crore.

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