Market Pulse: Confirmed Uptrend

Distribution Day Count:

Nifty50: Four Nifty Midcap100: Three Nifty Smallcap100: Five

Global stock markets: Dow 30, -0.02%; Nasdaq, +0.6%; S&P 500, +0.3%; Nikkei, +0.7%; Kospi, -0.05%; Shanghai Composite, -0.1%.

Selloff on Nifty has been the story of the week. Yesterday, Nifty again opened in the green, made an intraday high of 18,384, and continued to trade lower for much of the remaining session. However, the index recovered by 130 points in the last hour and ended the session at 18,178. As volume was lower than in the previous session, Nifty escaped a distribution day.

Along with the benchmark index, Nifty Midcap and Smallcap also declined. On the sectoral front, it was a mixed bag, with Nifty IT and Metal down 2.5% and 1.8%, respectively. On the flip side, Nifty PSU Bank and Bank Nifty gained 2.7% and 1.3%, respectively.

The distribution day count stands at four. However, one distribution day is set to expire next week. The market remains in an Uptrend, 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: Reliance Industries, Hdfc Life Insurance Co, Yes Bank, Hindustan Zinc (Nse), Inox Leisure (Nse), Polycab India, and others.

Key News

Indian Energy Exchange announced its Q2 FY22 results yesterday. Consolidated revenue surged 57% y/y to Rs 110 crore. Profit jumped 75% to Rs 77 crore.

Icici Lombard General Ins Co announced its Q2 FY22 results yesterday. Total income increased 32% y/y to Rs 3,808 crore. Profit was up 7% to Rs 446 crore.

Lic Housing Finance(Nse) announced its Q2 FY22 results. Revenue for the September quarter fell 5% y/y to Rs 4,708 crore. Profit was down to Rs 247 crore from Rs 790 crore a year ago

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