Market Pulse: Confirmed Uptrend

Distribution Day Count: Four

Global stock markets: Dow 30, +0.4%; Nasdaq, +0.2%; S&P 500, +0.4%; Kospi, +0.7%; Nikkei, +0.8%; Shanghai Composite, +0.2%

Yesterday, Nifty made a gap up opening of about 75 points and traded in a narrow range for the first half of the session. In the second half, the index came under selling pressure and fell sharply toward the day’s low of 15,645. However, some buying interest helped the index close flat for the day. Volume was lower compared to that in the previous session. In fact, volume has been consistently lowering in the previous five consecutive sessions.

On the sectoral front, Nifty Realty (+3.6%) was the highest gainer for the day while Nifty Bank and Nifty PVT Bank advanced 0.4% each. Nifty IT, FMCG, and Metal closed 0.2–0.5% lower. The broader market outperformed benchmark indices. The advance-decline ratio was in favor of advancers. Out of 2,317 stocks traded, 1,179 stocks advanced, 797 stocks declined, and the remaining closed flat.

The distribution day count is currently at four. Nifty remained below its 21-DMA. However, the volume was lower. If the index falls further and adds a distribution day, 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.

Key News

Sunteck Realty has announced an operational update for Q1 FY22. Its pre-sales grew 74% y/y to Rs 176 crore. Collections grew 165% y/y to Rs 172 crore and collection efficiency increased to 98% of pre-sales against 64% in Q1 FY21.

F D C (Nse) launched India’s first oral suspension of Favipiravir – Favenza, which is used to treat mild to moderate COVID-19 cases.

Ismt announced Q1 FY22 results. Consolidated revenue grew 66% y/y to Rs 459 crore. It reported a loss of Rs 112 crore compared with a loss of Rs 79 crore in Q1 FY21.

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Author's Bio: 

Marketsmith India, One stop solution for all your Stock Market needs. Get stock market ideas and stock predictions all at one place. A proprietary tool by William O'Neil India following the CANSLIM method of investing.