Market Pulse: Confirmed Uptrend

Distribution Day Count:

Nifty50: Three Nifty Midcap100: Two Nifty Smallcap100: Three

Global stock markets: Dow 30, -0.1%; Nasdaq, +0.8%; S&P 500, +0.3%; Nikkei, +0.6%; Kospi, +0.7%; Shanghai Composite, +0.5%.

Nifty’s gap up story continued in yesterday’s session with the index crossing 18,500. It continued to consolidate throughout the day, making a new all-time high of 18,543 and traded in a narrow range of ~100 points. The benchmark index closed in the top quartile of the day’s range.

Along with the benchmark index, Nifty Midcap and Smallcap remained strong throughout the day. On the sectoral front, Nifty Metal, PSU Bank, and IT showed strong momentum and advanced 3.9%, 3.9%, and 1.6%, respectively. On the other hand, Nifty Media and Pharma remained weak and declined 0.7% and 0.9%, respectively.

The distribution day count currently stands at three. Further, Nifty is trading at new highs, 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.

Results Today: Hindustan Unilever, Nestle India, 5paisa Capital, ICICISEC, L&T Technology Services, and others.

Key News

Larsen & Toubro Infotech’s Q2 FY22 revenue increased 8.8% y/y to Rs 3,767 crore. Profit grew 11.0% to Rs 551.7 crore.

Tata Coffee’s revenue for the September quarter rose to Rs 548.5 crore from Rs 543.4 crore y/y. Profit surged 47.8% to Rs 34.0 crore.

H.G. Infra Engineering emerged as L-1 bidder for two HAM projects from the NHAI.

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Author's Bio: 

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