SGX Nifty Indicates Higher Opening; State Bank of India and Shree Cement to Report Results Today

At 8:00 am IST, SGX Nifty Futures was trading at 15,010, compared with Nifty’s close of 14,906, yesterday.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Global stock markets: Dow30, +0.6%; S&P 500, +1.1%; Nasdaq, +1.8%; Kospi, -0.2%; Nikkei, +0.4%; Shanghai Composite, -0.5%

Yesterday, Nifty briefly opened in the green but turned negative in the opening hour. It continued to trend lower and closed near the day's low. Volume was lower than the previous session, which helped the index avoid a distribution day. Broader indices performed better than benchmark indices.

On the sectoral front, barring Nifty Realty (+1.0%) and PSU Bank (+0.7%), all other indices closed in the red. Nifty Metal closed more than 3% lower. Nifty Auto, Bank, Financial Service, FMCG, and IT closed 0.2–1.0% lower. The advance-decline ratio was in favor of decliners. Of the 2,259 stocks traded, 937 advanced, 972 declined, and the rest remained unchanged.

Nifty recently retook its 50-DMA, which is a positive sign. We would like the index to hold its 50-DMA and trade above that. Without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. If the index falls further, adds a distribution day, and breaches its key moving averages, we may change the market status to an Uptrend Under Pressure. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.

Key Results Today: State Bank Of India, Shree Cement, Jsw Steel, Hindalco Industries, and others.

Key News:

Hindustan Ptl (Nse) reported its Q4 FY21 results. Consolidated revenue was up 10% y/y to Rs 85,204 crore. It reported a profit of Rs 3,018 crore compared with a profit of Rs 2,345.6 crore in Q4 FY20.

J K Lakshmi Cement reported its Q4 FY21 results. Revenue increased 25.2% y/y to Rs 1,424.3 crore. PAT grew 54% to Rs 152.9 crore.

Havell's India reported its Q4 FY21 results. Revenue increased 50.3% y/y to Rs 3,331 crore. PAT grew 70.8% y/y to Rs 302.3 crore.
Buy Watchlist: Sharda Cropchem, Astral, I G Petrochemicals, Thirumalai Chemicals, Berger Paints India, Icici Bank, Blue Dart Express, Dhanuka Agritech, Ramkrishna Forgings, Relaxo Footwears, Gujarat State Petronet, Apollo Hosps.Enterprise, Asian Paints, and Apollo Tricoat Tubes