Month: June 2021

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Nifty Reverses Intraday Loss; Broader Market Outperforms

Today’s Action

Nifty, +0.01%; Sensex, -0.16%; Nifty Midcap, +1.4%; Nifty Smallcap, +1.3%; Model Portfolio, +1.2%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Nifty started the session on a weaker note and continued to move lower. However, in the last couple of hours, it advanced more than 100 points from the day’s low and reversed losses to close flat. Today, volume was on the lower side. The broader market indices outperformed the major index. Nifty Midcap and Smallcap gained more than 1%. On the sectoral front, Nifty Auto (+1.9%), Metal (+2.1%), and PSU Bank (+3%) were the top gainers. On the flip side, Nifty FMCG, IT, and Financial Services closed 0.2–0.7% lower. The advance-decline ratio was in favor of advancers, as out of 2,255 traded stocks, 1,383 stocks advanced, 535 stocks declined, and the remaining closed flat.

Nifty making a new high, the broader market back in momentum, and no distribution day after May 11 are positive signs for a sustainable rally. However, 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. 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

Pvr  announced its Q4 FY21 results. Loss widened to Rs 289 crore versus a loss of Rs 74.5 crore in Q4 FY20. Revenue was down 60% y/y to Rs 263.3 crore. Margin contracted 19.1% y/y to 9.5%.

Muthoot Finance ’s Q4 FY21 result came in just below estimates. NII grew 15.7% y/y to Rs 1,892 crore. PAT grew 22% y/y to Rs 995 crore. Gold kept in security increased 3% q/q to 171 tons.

Motherson Sumi Sys Nse ’s Q4 FY21 PAT beat estimates, while revenue was in line with estimates. PAT grew 289% y/y to Rs 713 crore. Revenue grew 18% y/y to Rs 16,971 crore.

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At 8:00 am IST, SGX Nifty Futures was trading at 15,617, compared with Nifty’s close of 15,575 yesterday.

Market Pulse: Confirmed Uptrend


Distribution Day Count: Three

Global stock markets: Dow30, +0.1; S&P 500, -0.1%; Nasdaq, -0.1%; Kospi, +0.1%; Nikkei, +0.5%; Shanghai Composite, -0.4%

After gapping up on open yesterday, Nifty hit the day’s high of 15,661 in the first hour of the session. In the next two hours, it pared opening gains and traded closer to the day’s low of 15,528. The index remained volatile in the second half and closed flat. Yesterday, volume was on the lower side. Broader market indices continued to underperform the major index. Midcap was down 0.10%, while Smallcap closed 0.70% lower. On the sectoral front, the majority of indices closed in the red. Nifty Pvt Bank (-0.9%) and Metal (-0.8%) were the top decliners. On the flip side, Nifty IT (+0.1%) and Nifty Pharma (+0.04%) managed to close in the green.

Last week, Nifty hit an all-time high and is currently trading 3.8% and 5.3% above its 21- and 50-DMA, respectively. We would like the index to hold its 21-DMA and/or 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. 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 Results Today: Muthoot Finance , Pvr , Ratnamani Metals & Tubes , and others.

Key News:

Itc  reported its Q4 FY21 results. Revenue was up 22.6% y/y to Rs 13,294.7 crore. PAT moderated 1.3% y/y to Rs 3,784.7 crore. EBITDA grew 7.4% y/y to Rs 4,473 crore. The company’s bottom line missed consensus.

Gujarat Gas reported its Q4 FY21 results. Revenue was up 28.2% y/y to Rs 3,489.3 crore.PAT witnessed double digit growth of 40.1% y/y to Rs 350.9 crore. EBITDA grew 29.9% y/y to Rs 554.2 crore.

Balrampur Chini Mls Nse reported its Q4 FY21 results. Revenue was down 41.4% y/y to Rs 1,019.4 crore. PAT moderated 2.5% y/y to Rs 235.5 crore.

Buy Watchlist:      Avanti feeds  , Bajaj Finance , Sbi Cards And Payment Services ,  Ion Exchange India, Page Industries ,   Action Construction Equ., State Bank Of India, Ambuja Cements, Eveready Inds.(India), Varun Beverages, Colgate-Palmolive India, Sharda Cropchem, Astral, I G Petrochemicals, Berger Paints India, Icici Bank, Ramkrishna Forgings, Gujarat State Petronet, Apollo Hosps.Enterprise,  and Apollo Tricoat Tubes

Sell Watchlist : Advanced Enzyme Techs

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Nifty Trades Volatile Near All-Time High; Financials, Metal, and Realty Stocks Drag

Today’s Action

Nifty, -0.05%; Sensex, +0.0%; Nifty Midcap, -0.1%; Nifty Smallcap, -0.7%; Model Portfolio, -0.3%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

After gapping up on open, Nifty hit the day’s high of 15,661 in the first hour of the session. In the next two hour, it pared opening gains and traded closer to the day’s low of 15,528. The index remained volatile in the second half and closed flat. Today, volume was on the lower side. Broader market indices continued to underperform the major index. Midcap was down 0.10%, while Smallcap closed 0.70% lower.

On the sectoral front, the majority of indices closed in the red. Nifty Pvt Bank (-0.9%) and Metal (-0.8%) were the top decliners. On the flip side, Nifty IT (+0.1%) and Nifty Pharma (+0.04%) managed to close in the green. The advance-decline ratio was in favor of decliners, as out of 2,253 traded stocks, 721 stocks advanced, 1,197 stocks declined, and the remaining closed flat.

Nifty making a new high and not registering any distribution day after May 11 are positive signs for a sustainable rally. However, 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. 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

Radico Khaitan Nse announced its Q4 FY21 results. Revenue was up 18.8% y/y to Rs 694.7 crore. PAT surged about 2x to Rs 73.5 crore. EBITDA advanced 23.2% y/y to Rs 101.3 crore.

Salasar Techno Engineering announced its Q4 FY21 results. Revenue advanced 94.7% y/y to Rs 2,11.5 crore. PAT rose nearly 2.5x to Rs 9.7 crore.

Indian oil transferred 2.28 crore equity shares of Numaligarh Refinery Limited (NRL) in favor of the Government of Assam for Rs. 217.75 per share.

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At 8:00 am IST, SGX Nifty Futures was trading at 15,623, compared with Nifty’s close of 15,583 yesterday.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Global stock markets: Dow30, +0.2; S&P 500, +0.0%; Nasdaq, +0.1%; Kospi, +0.5%; Nikkei, -0.5%; Shanghai Composite, -0.8%

Yesterday, Nifty turned negative after a flat opening and stayed lower for the first 30 minutes of the session. It then turned positive and the up move continued throughout the session. It closed the session near the day’s high. Nifty closed in the green for the seventh consecutive session. However, yesterday’s volume was on the lower side. On the sectoral front, mixed reactions were observed. Nifty Metal (+2.1%) and Realty (+1.4%) were the top gainers. On the flip side, Nifty Media (-1.4%) and PSU Bank (-0.7%) were the top decliners. Advance-Decline ratio was in favor of advancers, as out of 2,306 traded stocks, 1,094 stocks advanced, 882 declined, and remaining closed flat.

Last week, Nifty hit an all-time high and is currently trading 4.1% and 5.5% above its 21- and 50-DMA, respectively. We would like the index to hold its 21-DMA and/or 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. 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 Results Today: Itc , Radico Khaitan (Nse),  Balrampur Chini Mls (Nse), and others.

Key News:

Hnywell Atmtn Ida (Nse) reported its Q4 FY21 results. Revenue was down 4.5% y/y to Rs 672.7 crore. PAT moderated 6.3% y/y to Rs 104 crore.

Rupa reported its Q4 FY21 results. Revenue was up 53.2% y/y to Rs 454 crore. The company reported a profit of Rs 65.9 crore as against a loss of Rs 4.3 crore for the same period last year.

Narayana Hrudayalaya reported its Q4 FY21 results. Revenue was up 12.8% y/y to Rs 838 crore. PAT advanced about 5.5x y/y to Rs 68.1 crore.

India’s GDP declined 7.3% in FY21. However, it grew 1.6% in Q4 FY21.

Buy Watchlist: Ion Exchange India, Page Industries ,   Action Construction Equ., State Bank Of India, Ambuja Cements, Eveready Inds.(India), Varun Beverages, Colgate-Palmolive India, Sharda Cropchem, Astral, I G Petrochemicals, Berger Paints India, Icici Bank, Ramkrishna Forgings, Gujarat State Petronet, Apollo Hosps.Enterprise,  and Apollo Tricoat Tubes

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