Weekly Action
Nifty, +1.5%; Sensex, +1.3%; Nifty Midcap, +3.3%; Nifty Smallcap, +2.4%; Model Portfolio, +2.4%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Weekly Market Review
Nifty continued to trend higher for the third consecutive week. Daily trading volume has stayed below 50-day average volume throughout the week. Today, it opened on a flat note but hit a new all-time high of 15,733. Nifty Midcap (+0.7%) and Smallcap (+0.4%) outperformed the major index. 50% of Nifty50 stocks closed higher led by Tata Motors (+3.4%) and Grasim Industries(+3.3%).
Barring Nifty IT (-0.5%), all sectors closed in the green. Nifty Realty (+6.7%) was the top gainer for the week, followed by Nifty Metal (+5.6%). Today, the advance-decline ratio was in favor of advancers. Of the 2,254 stocks traded, 1,118 advanced, 799 declined, and the rest remained unchanged.
Nifty making a new high, the broader market back in momentum, and no distribution day after May 11 are positive signs for a sustainable rally. Declining average daily trading volume is not a good sign. 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
Niit (Nse) announced its Q4 FY21 results. Consolidated revenue grew 30.5% y/y to Rs 275.5 crore. It reported a profit of Rs 46.5 crore compared to a profit of Rs 0.6 crore in Q4 FY20.
Bank of India announced its Q4 FY21 results. NII decreased 22.6% y/y to Rs 2,936 crore. It reported a profit of Rs 250.2 crore compared to a loss of Rs 3,571 crore in Q4 FY20.
Bharat Forge announced its Q4 FY21 results. Revenue increased 48.4% y/y to Rs 1,307 crore. It reported a profit of Rs 205.4 crore compared to a loss of Rs 73.3 crore in Q4 FY20.
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