Nifty, +0.1%; Sensex, +0.2%; Nifty Midcap, +0.1%; Nifty Smallcap, +0.3%; and Model Portfolio, +0.2%.
Daily Market Review
Market Status: Confirmed Uptrend
It was a volatile trading session as benchmark indices nearly wiped-off the gains. Nifty and Sensex ended 0.1% and 0.2% higher, respectively. After a heavy fall yesterday, Infosys (+1.1%) opened in negative territory, but it recovered as the trading progressed and ended in the green. Nifty PSU Bank (+2.1%) and Auto (+1.3%) stocks helped the index to advance.
However, market breadth witnessed an improvement with advance-decline ratio tilting toward advancers. Of the 2,146 stocks traded on the NSE, 930 advanced, 855 declined, and the rest remained unchanged. Midcap and smallcap indices closed with gains of 0.1% and 0.3%, respectively.
Looking ahead, we would like Nifty to hold its key moving averages with good participation from Midcap and Smallcap stocks. With Nifty in a Confirmed Uptrend, we recommend focusing on non-extended ideas trading above their respective moving averages with RS lines at or near new highs. On the flip side, if Nifty registers additional distribution days, it will be a subtle sign of weakness in the market.
Havell’s India Q2 results miss consensus estimates. Revenue rose 1.8% y/y to Rs 2,230 crore, PAT 1.5% to Rs 181 crore. Margin declined 150bps to 10.5%. The stock was down 0.7% today.
Jsw Steel reported Q2 results today during market hours. PAT grew 21.5% y/y to Rs 2,536 crore, while revenue slid 18.5% to Rs 17,572 crore. Margins fell sharply 730bps to 15.5%. The stock was up 1.4% today.
Bajaj Auto reported its Q2 results today. Revenue was down 4.1% y/y to Rs 7,707 crore, PAT was up 21.7% y/y to Rs 1,402 crore. Motorcycles volume declined 13%, mostly due to decline in domestic sales that was down 25%. The stock was up 1.3% today.