Market Pulse: Confirmed Uptrend
Distribution Day Count: Four
Global stock markets: Dow 30, -0.6%; Nasdaq, +0.2%; S&P 500, -0.2%; Kospi, -0.6%; Nikkei, -1.0%; Shanghai Composite, +0.1%
Yesterday, Nifty opened 20 points lower, but gained strength in the opening hour and moved higher. It made an intraday high of 15,913.95, which is just below its all-time high. Sensex made a fresh all-time high. This was mainly due to positive momentum in banking stocks, led by Hdfc Bank. However, in the last two hours, selling pressure increased, and Nifty gave up all intraday gains to close flat. Nifty Auto, especially Tata Motors, dragged the index lower. The broader market also had action similar to that of benchmark indices. It failed to hold the gains from the first half.
Barring Nifty Bank (+1%) and Financial Services (+1%), all indices closed in the red. Nifty Auto (-1.8%) was the top loser, while Nifty IT and Pharma gained around 1%. The advance-decline ratio was in favor of decliners. Out of 2,285 stocks traded, 854 stocks advanced, 1,085 stocks declined, and the remaining closed flat.
The distribution day count is currently elevated to four. If the index falls further, adds a couple of distribution days, and breaches its key moving averages, 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
Sobha achieved super built-up area worth Rs 682.9 crore in Q1 FY22 compared with Rs 487.7 crore in Q1 FY21.
RBL Bank’s total deposits grew 21% y/y to Rs 74,480 crore in Q1 FY22. CASA ratio improved to 33.7% from 31.8% in Q4 FY21.
Titan Company released the company update for Q1 FY22. Revenue (excluding bullion sales) grew 117% with revenue contribution approximately 50%, 10%, and 40% from April, May and June, respectively. Jewelry sales increased 107%. Watches and wearables division and Eye wear division grew 280% and 117%, respectively.
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