Category: Daily Big Picture

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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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Nifty Makes New High on Low Volume; Metal and Realty Stocks Outperform

Today’s Action

Nifty, +0.9%; Sensex, +1.0%; Nifty Midcap, +0.3%; Nifty Smallcap, +0.1%; Model Portfolio, -1.4%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

After opening on a flat note, Nifty turned negative 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, today’s volume was on the lower side. Of the Nifty50 stocks, 78% stocks closed in the green, led by Jsw Steel (+3.1%), Icici Bank (+3.1%) and Reliance Industries (+3.1%). Broader market indices underperformed the major index.

Reaction was mixed on the sectoral front. 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 stocks declined, and 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

Markans Pharma’s Q4 FY21 revenue was down 1.5% y/y to Rs 330 crore. PAT surged 86% y/y to Rs 79.5 crore. 

Aurobindo Pharma announced its Q4 FY21 results. Revenue declined 2.5% y/y to Rs 6,001 crore. PAT fell 7.2% y/y to Rs 801 crore.

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PSU Banks Outperform; Ramco Cements Reports Mixed Results

Today’s Action

Nifty, +0.2%; Sensex, +0.2%; Nifty Midcap, +0.7%; Nifty Smallcap, +1%; Model Portfolio, +0.6%

Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Nifty, after opening briefly in the green, made a high of 15,251. However, it turned negative in the opening hour. Nifty was range-bound and closed 0.15% higher. Broader indices outperformed benchmark indices. The advance-decline ratio was in favor of advancers. Of the 2,259 stocks traded, 1,189 advanced, 760 declined, and the rest remained unchanged. On the sectoral front, barring Nifty FMCG (-0.3%) and Metal (-0.6%), all other indices closed in the green. Nifty PSU Bank closed more than 2% higher, followed by 1.3% gain in Nifty Realty. Nifty Bank, Financial Services, IT, and Pharma closed 0.2–0.9% higher.

Last week, Nifty retook its 50-DMA, did not add a distribution day, and registered an additional follow – through day, which are positive signs. We would like the index to hold its 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 relative strength line at or near new highs while reducing exposure to stocks breaking below key support levels.

Key News

Wpil received an order worth Rs. 409.70 crore from the Government of West Bengal, which is to be completed over a period of 36 months.

The Ramco Cement’s Q4 FY21 revenue came in line with estimates, while PAT missed estimates. Revenue grew 16.8% y/y to Rs 1,650 crore. PAT grew 46.6% y/y to Rs 214.4 crore. Margin expanded 700bps to 28.4%.

India Cements (Nse) announced its Q4 FY21 results. Revenue grew 26% y/y to Rs 1,449 crore. The company reported a profit of Rs 71.6 crore against a loss of Rs 111 crore for the corresponding period last year. Margin expanded 790bps to 13.8%.

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Portfolio Closes 0.6% Higher Against Nifty’s Gain of 0.2%

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Auto, Metal, and Financial Stocks Drag the Index; Indian Oil Q4 Results Beat Consensus on All Fronts

Today’s Action

Nifty, -0.5%; Sensex, -0.6%; Nifty Midcap, -0.1%; Nifty Smallcap, +0.6%; Model Portfolio, -0.08%

Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Nifty, after opening lower this morning, traded toward the day’s high of 15,133 in the initial hour. However, it staged a reversal from there amid profit booking and closed near the day’s low holding 0.5% loss. Volume was lower than the previous session, which helped the index avoid a distribution day. Broader indices performed better than benchmark indices. Nifty Midcap closed 0.1% lower, while Smallcap advanced 0.6%.

On the sectoral front, mixed reactions were observed. Nifty Realty (+2.2%) led the gains followed by Nifty Media and Nifty Pharma, which advanced 2.0% and 1.2%, respectively. On the flip side, Nifty Fin Service (-1%) was the major decliner, while Nifty Metal, Nifty Bank, and Nifty Auto declined 0.7–0.9%. The advance-decline ratio was in favor of advancers. Of the 2,258 stocks traded, 1,069 advanced, 833 declined, and the rest remained unchanged.

Nifty recently retook its 50-DMA, which is a positive sign. We would like the index to hold its 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. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.

Key News

Indian Oil announced its Q4 FY21 results, beating consensus on all fronts. Revenue was up 16.3% q/q to Rs 1.24 lakh crore. PAT increased 78.6% q/q to Rs 8,781 crore. EBITDA advanced 40.3% q/q to 13,501 crore.

Prism Johnson announced its Q4 FY21 results. Revenue was up 24.7% y/y to Rs 1,850 crore. The company reported a profit of Rs 157.4 crore against a loss of Rs 38 crore for the corresponding period last year. EBITDA advanced 76.1% y/y to 237.3 crore.

Heritage Foods announced its Q4 FY21 results. Revenue declined 5% y/y to Rs 619.3 crore. The company reported a profit of Rs 24.2 crore against a loss of Rs 209.2 crore for the corresponding period last year. EBITDA stood at Rs 45.3 crore.

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Nifty Retakes its 50-DMA; Financial Related and Metal Stocks Surge

Today’s Action

Nifty, +1.7%; Sensex, +1.7%; Nifty Midcap, +1.8%; Nifty Smallcap, +1.2%; Model Portfolio, +2.5%

Market Pulse:  Confirmed Uptrend

Distribution Day Count:   Three

Nifty opened around 100 points, higher tracking global cues. The index made a new intraday high, and reclaimed its 50-DMA. As volume was lower than yesterday’s, today’s action didn’t qualify as an additional follow-through day. Of the Nifty50 stocks, 78% advanced led by Indusind Bank(Nse) (+7.5%) and State Bank Of India (+6.7%).

Barring Nifty Media (-0.5%) and Pharma (-0.2%), all the sectoral indices closed in the green. Financial related indices led the rally followed by Metal stocks. The advance-decline ratio was in favor of advancers. Of the 2,299 stocks traded, 1,333 advanced, 627 declined, and the rest remained unchanged.

On a technical perspective, Nifty retook its 50-DMA, which is a good sign. 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. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.

Key News

Colgate-Palmolive India announced its Q4 FY21 results. Revenue was up 19.8% y/y to Rs 1,283 crore. PAT increased 54.1% to Rs 314 crore.

Federal Bank’s Q4 FY21 NII was up 16.8% y/y to Rs 1,420 crore. PAT surged 58.6% to Rs 477 crore.

Wholesale inflation (WPI) for April increased to 10.49% due to a rise in fuel (petrol and diesel) prices.

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