Daily Big Picture : Sensex Hits Fresh Intraday High; HDFC Q2 Beats Consensus

Today’s Action

Nifty, +0.4%; Sensex, +0.3%; Nifty Midcap, -0.1%; Nifty Smallcap, +0.1%; Model Portfolio, -0.1%.

Daily Market Review.

Market Status: Confirmed Uptrend

Nifty opened higher after taking cues from global markets but traded in a narrow range and closed the session with modest gains. Volume was marginally lower compared to last Friday. Sensex hit an all-time high intraday and closed above 40,300. On the broader market, Nifty Midcap closed in the red whereas Nifty Smallcap closed flat with a gain of 0.1%.

On sectoral front, Nifty Media (-3.3%) and Nifty Auto (-1.4%) were the top two decliners whereas Nifty Metal (+2.8%) gained the most followed by Nifty IT (+0.8%). The market breadth was in favor of gainers. Of 2,158 stocks traded on the NSE, 1,047 advanced, 741 declined, and the rest remained unchanged.

Looking ahead, the underlying price action continues to improve. Under the current market scenario, investors should focus on non-extended ideas trading above their respective moving averages with RS lines at or near new highs. However, along with technical strength, a fresh entry should only be taken in stocks that have sound fundamentals and growth stories. On the flip side, the distribution day count has risen to three. If the count rises any further, it will indicate a subtle weakness in the market.

Key News

Varun Beverages (+2.1%) reported good set of numbers for September quarter. Consolidated revenue grew 47% y/y to Rs 1,777 crore. PAT grew 83% to Rs 81 crore. EBITDA margin improved 80bps to 18.3%.

Bharat Heavy Electricals Ltd (-0.9%) bagged an order worth over Rs 200 crore from Uttarakhand Jal Vidyut Nigam Limited for renovation, modernisation, and uprating of Chilla Hydro Electric Plant.

Canfin Homes (+5.1%) revenue for September quarter grew 19% to Rs 500 crore, while PAT grew 19.7% to Rs 97.6 crore.

Housing Development Fin. (+2.5%) revenue grew over 10% to Rs 10,478 crore. PAT surged over 60% to Rs 3,961 crore, due to about 50% lower tax expense. GNPA ratio rose 4bps sequentially to 1.33%.

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