Month: April 2021

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SGX Nifty Indicates Negative Opening; Reliance and Yes Bank to Declare Q4 Results Today

At 8:15 am IST, SGX Nifty Futures was trading at 14,762, compared with Nifty’s close of 14,894 yesterday.

 

Market Pulse: Confirmed Uptrend

 

Global stock markets: Dow30, +0.7%; S&P 500, +0.7%; Nasdaq, +0.2%; Kospi, -0.7%; Nikkei, -0.5%

 

Yesterday, Nifty opened higher and moved above 15,000 for the first time since March 16. However, gains faded quickly and the index reversed more than 200 points from its high. The volatility was high due to the F&O expiry. During the day, Nifty gained 100 points from its low and managed to close in the green. The positive takeaway was that it traded above its 50-DMA.

 

Though there were pockets of strength, the broader market was a little weak. On the sectoral front, Nifty Metal (+4.5%) outperformed. Nifty Bank, Financial Services, and Realty closed flat. Nifty Auto closed 1% lower. FIIs and DIIs net buying was Rs 766 crore and Rs 436 crore, respectively.

 

Looking ahead, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. Stocks that are breaking out of consolidation have higher relative strength, and superior fundamentals can do well. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.

 

Key News

 

Key Q4 FY21 results today: YESBANK, ATUL, MARICO, RELIANCE, and INDUSINDBK.

 

PERSISTENT’s Q4 FY21 results beat estimates on all fronts. PAT grew 14% y/y to Rs 137.7 crore. Revenue grew 3.5% y/y to Rs 1,113 crore. Margin expanded 50bps y/y to 13.2%.

 

TITAN’s Q4 FY21 PAT and revenue were in line with estimates, and margin, slightly below estimates. PAT grew 48% y/y to Rs 529 crore. Revenue grew 61% y/y to Rs 7,135 crore. Margin contracted 250bps y/y to 11.1%.

 

O’Neil Market Condition Report

 

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 30%; Rally Attempt, 12%; Uptrend Under Pressure, 52%; Downtrend, 6%.

 

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 65%; Rally Attempt, 10%; Uptrend Under Pressure, 25%; Downtrend, 0%.

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Metal Stocks Lead, Auto Stocks Lag; Hindustan Unilever Q4 Results Beat Estimates

Today’s Action

Nifty, +0.2%; Sensex, +0.1%; Nifty Midcap, -0.1%; Nifty Smallcap, +0.7%; Model Portfolio, -0.7%

Market Pulse: Confirmed Uptrend

Nifty opened higher this morning and moved above 15,000 for the first time since March 16. However, gains faded quickly and Nifty reversed more than 200 points from its high. The volatility was high due to the F&O expiry. During the day, Nifty gained 100 points from its low and managed to close in the green. The positive takeaway was that the index traded above its 50-DMA.

Though there were pockets of strength, the broader market was a little weak. The advance-decline ratio was in favor of decliners. Of the 2,248 stocks traded, 804 advanced, 1,020 declined, and the rest remained unchanged. On the sectoral front, Nifty Metal (+4.5%) outperformed. Nifty Bank, Financial Services, and Realty closed flat. Nifty Auto closed 1% lower.

Looking ahead, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. Stocks that are breaking out of Consolidation have higher relative strength, and superior fundamentals can do well. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.

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Apollo Hospitals Powers Into A Buy Range Amid Strong Group Rank

Apollo Hospitals stock has cleared a 8-week, 15% deep Consolidation Base last week. Currently, the stock is trading around just -1% away from its ideal buy price of INR 3284. The stock is worth watching at the current price.

The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 7.34% away from the 10-week moving average.

In the last twelve months, Apollo Hospitals has rallied nearly 129.4% as compared to 51.1% for the Nifty500. It has a Relative Strength Rating of 78. We definitely would like to see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.

The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the recent weeks. The overall long term trend of the line is also trending upward. If Apollo Hospitals can maintain this outperformance, it could make sense as a CANSLIM trade.

Another key part of the jigsaw is institutional sponsorship. Apollo Hospitals has an Accumulation/Distribution Rating of ‘A’. This represents heavy institutional buying over the past 13 weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.

On the earnings front, Apollo Hospitals has an EPS Rank of 58, which is okay but fails to impress a growth stock investor. The earnings and sales for the stock have grown by 20% and 12%, respectively over the past three years. Its 3-years earnings stability is 34, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 1% and 14%, respectively. The 5-years earnings stability is 32. The return on equity for the last reported year is 14%.

The current price of Apollo Hospitals is -3% off from its 52-week high price and 159% above its 52-week low price. The stock belongs to the industry group of Medical-Hospitals, which is exhibiting excellent strength in the current market environment. The current industry group rank is 31.

The stock appears on our idea lists: Trend Template – 5 Months.

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Srf Ltd. Stock Is Outperforming The Market In Recent Weeks

Srf Ltd. stock has broken out of a 12-week, 15% deep Consolidation Base 3-weeks ago. The current price is 6% away from the ideal buy price of INR 6071, which slightly extended for a CANSLIM investor. However, an aggressive investor can still get on board at the current price.

 

The stock has an excellent EPS Rank of 81, which indicates consistency in earnings. The earnings and sales for the stock have grown by 36% and 11%, respectively over the past three years. Its 3-years earnings stability is 8, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 22% and 13%, respectively. The 5-years earnings stability is 13. The return on equity for the last reported year is 21%.

 

The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 11.34% away from the 10-week moving average.

 

In the last twelve months, Srf Ltd. has rallied nearly 72.7% as compared to 51.1% for the Nifty500. It has a Relative Strength Rating of 68. We definitely would like to see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.

 

The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last five weeks. The overall long term trend of the line is also trending upward. If Srf Ltd. can maintain this outperformance, it could make sense as a CANSLIM trade.

 

Srf Ltd. stock has a strong institutional support. The Accumulation/Distribution Rating of ‘A-‘ represents heavy institutional buying over the past 13 weeks. Although the shares held by institutions dropped in the last quarter, the number of institutions holding the stock increased at the same time. This shows increasing interest among the institutions.

 

The current price of Srf Ltd. is -1% off from its 52-week high price and 95% above its 52-week low price. The stock belongs to the industry group of Chemicals-Specialty, which is exhibiting excellent strength in the current market environment. The current industry group rank is 39.

 

The stock appears on our idea lists: Trend Template – 5 Months.

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What Makes Mphasis Ltd. Stock A Watch Now?

Mphasis Ltd. stock has broken out of a 5-week, 12% deep Flat Base 4-weeks ago. However, the stock is still offering investors an opportunity to get on board as the current price is only -1% away from the ideal buy price of INR 1788.

 

The stock has an excellent EPS Rank of 88, which indicates consistency in earnings. The earnings and sales for the stock have grown by 18% and 15%, respectively over the past three years. Its 3-years earnings stability is 5, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 19% and 11%, respectively. The 5-years earnings stability is 4. The return on equity for the last reported year is 20%.

 

Mphasis Ltd. stock has a strong institutional support. The Accumulation/Distribution Rating of ‘B+’ represents heavy institutional buying over the past 13 weeks. Although the number of institutions holding the stock dropped in the last quarter, the number of shares held by the institutions increased at the same time.

 

The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 4.17% away from the 10-week moving average.

 

In the last twelve months, Mphasis Ltd. has rallied nearly 140% as compared to 51.1% for the Nifty500. It has a Relative Strength Rating of 71. We definitely would like to see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.

 

The RS Line of the stock is offering some encouraging signs. It is slowly outperforming the market in recent weeks. The overall long term trend of the line is also upward. If Mphasis Ltd. can maintain a healthy upward move, it could make sense as a CANSLIM trade.

 

The stock belongs to the industry group of Computer-Tech Services. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 76. The current price of Mphasis Ltd. is -4% off from its 52-week high price and 153% above its 52-week low price.

The stock appears on our idea lists: Trend Template – 5 Months.