Today’s Action
Nifty, -0.6%; Sensex, -0.7%; Nifty Midcap, +0.8%; Nifty Smallcap, +0.8%; Model Portfolio, -0.1%
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Nifty gapped lower on weak global cues. However, it recovered around 80 points in the opening hour. After a little consolidation, it further moved higher and made a high of 14,900. From there, it reversed and closed around 14,850. As the volume was higher compared with yesterday’s session, we will consider it as a distribution day.
The positive momentum remained intact in the broader market. Midcap and Smallcap indices outperformed benchmark indices. There was a mixed action on the sectoral front. Nifty PSU Bank (+1.2%), Realty (+0.3%), and Auto (+0.3%) closed higher, Nifty Private Banks, Financial Services, and Metals closed more than 1% lower. The advance-decline ratio was in favor of advancers. Of the 2,257 stocks traded, 1,162 advanced, 757 declined, and the rest remained unchanged.
Looking forward, 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
Granules India announced its March quarter results. Revenue grew 33.2% y/y to Rs 799 crore. PAT increased 38% to Rs 127.7 crore. EBITDA margin expanded 860bps to 25.3%.
Firstsource Solutions Q4 FY21 revenue grew 7% y/y to Rs 1,460 crore. EBITDA grew 10.7% y/y to Rs 231 crore. EBITDA margin expanded 50bps to 15.8%.
-Telangana government announced a 10-day lockdown, starting tomorrow.
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