Category: Daily Big Picture

Today’s Action

Nifty, -0.6%; Sensex, -0.5%; Nifty Midcap, -0.9%; Nifty Smallcap, -0.5%; Model Portfolio, -0.3%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Two

Nifty started the session on a flat note and quickly started to fall. After noon, it observed buying at the dip, but a sell-off in the last hour ensured Nifty ended near the day’s low. Today’s action qualified as a distribution day as the fall was more than 0.2% on volume higher than yesterday’s. It was a broad-based sell-off today as broader market indices Nifty Midcap (-0.9%) and Smallcap (-0.5%) also close in the red. Barring Nifty FMCG (+0.6%) and IT (+0.3%), all the sectoral indices closed lower. Nifty Media (-2.9%) and Realty (-1.3%) declined the most. The advance-decline ratio was in favor of decliners, as out of 2,263 stocks traded, 662 stocks advanced, 1,286 stocks declined, and the remaining closed flat.

Addition of distribution days is a sign of weakness in the market. However, the count remained at two as one distribution day expired today. If the index falls, 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

Rites announced its Q4 FY21 results. Consolidated revenue increased 11.4% to Rs 636 crore. PAT declined 1.6% to Rs 141 crore. EBITDA margin expanded 50bps y/y to 29.1%.

Larsen & Toubro Infotech signed a definitive agreement to acquire Cuelogic Technologies, a Pune-based digital engineering company.

Alembic Pharmaceuticals’s joint venture Aleor Dermaceuticals received final approval from the U.S. FDA for its abbreviated new drug application for testosterone topical solution USP.

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Today’s Action

Nifty, +0.1%; Sensex, +0.2%; Nifty Midcap, -0.5%; Nifty Smallcap, -0.4%; Model Portfolio, +0.2%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Two

After a muted opening, Nifty quickly fell over 180 points within the first 30 minutes of the session. However, as the session progressed, Nifty staged an upside reversal to pare all its losses and managed to close in the green. Thus, it closed above 15,800 for the first time. Of the Nifty50 stocks, 50% closed in the green, led by Tata Motors (+1.5%) and Reliance Industries (+1.4%).

The majority of sectoral indices closed in the red. Nifty Realty (-1.5%) declined the most, followed by Nifty Media (-0.8%) and Nifty Metal (-0.7%). On the flipside, Nifty FMCG, Nifty IT, and Nifty PSU Bank gained 0.1-0.5%. The advance-decline ratio was in favor of decliners, as out of 2,303 stocks traded, 887 stocks advanced, 1,094 stocks declined, and the remaining closed flat.

Nifty is back trading at its all-time high, which is a good sign of further upside. One distribution day is set to expire during the week. However, if the index falls, adds a distribution day, and breaches its key moving averages, we may change the market status to an Uptend 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

Indian Overseas Bank announced its Q4 FY21 results. Net interest income decreased 8.4% y/y to Rs 1,403 crore. PAT increased 143% to Rs 349 crore. Gross NPA improved to 11.69% q/q from 13.07%. Net NPA at 3.58% increased from 3.13%, a quarter ago.

Kajaria Ceramics’s Q4 FY21 revenue increased 46.1% y/y to Rs 952.5 crore. PAT rose 172% to Rs 131.2 crore. EBITDA margin improved to 20% from 14.3% in Q4 FY20.

Gayatri Projects Limited’s Q4 FY21 revenue increased 49.5% y/y to Rs 1,360 crore. It reported a profit of Rs 18.6 crore compared to a loss of Rs 81 crore in Q4 FY20.

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Weekly Action

Nifty, +0.8%; Sensex, +0.7%; Nifty Midcap, +2.9%; Nifty Smallcap, +2.9%; Model Portfolio, +2.4%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Two

Weekly Market Review

Nifty continued its positive momentum for the fourth consecutive week, which happened for the first time in 2021. Today, it hit a new all-time high of 15,835 and closed above 15,800 for the first time. It was a gap-up opening today, with the index staying in the green throughout the session. Barring a 30-minute action at noon, the session was calm, with little price movement. Of the Nifty50 stocks, 46% closed higher, led by Tata Steel (+3.9%) and Jsw Steel (+3.6%).

Sectoral action was mixed during the week. Nifty IT (+4.5%) and Media (+3.5%) were the top gainers for the week, followed by Nifty Pharma (+2.6%). Financial-related sectors declined 0.5-0.7%. Today, the advance-decline ratio was in favor of advancers. Of the 2,255 stocks traded, 1,043 advanced, 910 declined, and the rest remained unchanged.

During the week, Nifty succumbed to a distribution day for the first time since May 11. 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

Ashoka Buildcon was declared the lowest bidder for a project worth Rs 726 crore. The project is to develop the Memmadpur (Ambala) – Banur (IT City Chowk) — Kharar (Chandigarh) Corridor under the Bharatmala Pariyojana.

Deccan Cements announced its Q4 FY21 results. Revenue surged 72.8% y/y to Rs 213.8 crore. It reported a profit of Rs 22.1 crore against a loss of Rs 3 crore in Q4 FY20. EBITDA margin improved to 17.3% versus 9.1% in Q4 FY20.

Goa Carbon ’s Q4 FY21 revenue increased 84.6% y/y to Rs 127.9 crore. It reported a profit of Rs 6.6 crore against a loss of Rs 4.8 crore in Q4 FY20.

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