Month: May 2021

At 8:15 am IST, SGX Nifty Futures was trading at 14,664, compared with Nifty’s close of 14,634 yesterday.

Market Pulse: Confirmed Uptrend

 Day Count: One

Global stock markets: Dow30, +0.7%; S&P 500, +0.3%; Nasdaq, -0.5%; Kospi, -0.04%

Nifty gapped lower yesterday and breached its 21- and 100-DMA. However, after hitting a low of 14,414 in the opening hour, it staged an upside reversal and gained more than 200 points. It closed above its 21- and 100-DMA. The broader market was in momentum. The advance-decline ratio was in favor of advancers. Of the 2,248 stocks traded, 1,177 advanced, 736 declined, and the rest remained unchanged. 

On the sectoral front, Nifty Bank (-0.8%) was the top loser. Nifty Metal (+2%) continues to outperform. Nifty FMCG also closed 1% higher. In April, FIIs sold equities worth Rs 2,655 crore, while DIIs bought shares worth Rs 476 crore.

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 with 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: ADANIPORTS, ALEMBIC, DCMSHRIRAM, LTI, and RBLBANK.

SBILIFE reported its Q4 FY21 results yesterday. Net premium grew 31.1% y/y to Rs 15,555 crore. PAT increased slightly to Rs 532 crore compared with Rs 530 crore in Q4 FY20.

LTTS reported its Q4 FY21 results on Friday after market close. Revenue was flat y/y at Rs 1,440 crore. PAT was down 5% to Rs 194 crore. In the quarter, it won six deals with TCV worth more than $10M, including two deals exceeding $25M.

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, 46%; Rally Attempt, 12%; Uptrend Under Pressure, 42%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 84%; Rally Attempt, 8%; Uptrend Under Pressure, 8%; Downtrend, 0%.

At 8:15 am IST, SGX Nifty Futures was trading at 14,464, compared with Nifty’s close of 14,631 on Friday.

Market Pulse: Confirmed Uptrend

Distribution Day Count: One

Global stock markets: Dow30, -0.5%; S&P 500, -0.7%; Nasdaq, -0.9%; Kospi, +0.6%; Nikkei, -0.8%

Last week, Nifty gapped higher on Monday morning as Banks were in momentum after ICICI Bank released good Q4 FY21 results. On Monday, we shifted the market to a Rally Attempt as the index managed to stay above its recent low (14,151) for three consecutive sessions. On Tuesday, Nifty reclaimed its 21-DMA. On Wednesday, it reclaimed its 50-DMA and staged a follow-through day. So, we upgraded the market status to a Confirmed Uptrend. Friday, Nifty was under selling pressure and breached its 50-DMA. Also, as the fall was on high volume compared with the previous session, we considered it a distribution day.

On the sectoral front, for last week, Nifty Metal (+9%) was the top gainer, followed by Nifty Bank (+3.3%). Nifty Financial Services, Energy, Media, and Realty closed 2.0–2.5% higher. Nifty IT closed flat, while FMCG closed 0.3% lower. On Friday, the advance-decline ratio was in favor of decliners. Of the 2,252 stocks traded, 822 advanced, 1,048 declined, and the rest remained unchanged.

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: KOTAKBANK, SBILIFE, LTTS, TATACHEMICALS, and GODREJPROP.

RELIANCE reported its Q4 FY21 results on Friday after market close. Revenue grew 11% y/y to Rs 1,54,896 crore. PAT surged 108% y/y to Rs 13,227 crore.

YESBANK reported its Q4 FY21 results on Friday after market close. NII fell 22.5% y/y to Rs 986 crore. It reported a loss of Rs 3,787 crore versus a loss of Rs 3,668 crore in Q4 FY20.

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, 46%; Rally Attempt, 12%; Uptrend Under Pressure, 42%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 84%; Rally Attempt, 8%; Uptrend Under Pressure, 8%; Downtrend, 0%.