Weekly Action
Nifty, +3.4%; Sensex, +3.7%; Nifty Midcap, +4.3%; Nifty Smallcap, +3.8%; Model Portfolio, +2.8%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Weekly Market Review
Nifty remained volatile throughout the week. It started the week with retaking its 50-DMA on Monday and extended the gain in the next session to close above 15,100. However, it staged a reversal there and pared about 1.3% of its gain on Wednesday and Thursday. Today, the index opened, advancing about 80 points, and continued gaining momentum in the whole session to close near the day’s high, holding significant gains. Further, today’s action qualified as an additional follow through day as the index closed with more than 1.5% gain on higher volume than on the previous day.
On the sectoral front, barring Nifty FMCG (-0.3%), all sectors closed in the green. Sectors related to financials posted solid performance. Nifty Bank (+7.6%) was the top gainer for the week, followed by Nifty Pvt Bank (+7.3%) and Nifty PSU Bank (+7%). Further, Nifty Realty and Nifty Financial Services gained more than 6% for the week. Today, the advance-decline ratio was in favor of advancers. Of the 2,260 stocks traded, 1,199 advanced, 723 declined, and the rest remained unchanged.
This 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
Hindalco Industries ’s Q4 FY21 revenue grew 44.2% y/y to Rs 14,412 crore. PAT was up 51.8% y/y to Rs 495 crore. EBITDA was up 30.3% y/y to Rs 1,487 crore.
Dhanuka Agritech announced its Q4 FY21 results. Consolidated revenue from operations grew 21.1% y/y to Rs 275.6 crore. PAT was up 24.7% y/y to Rs 48.6 crore. EBITDA advanced 41.2% y/y to Rs 64.6 crore.
State Bank Of India announced its Q4 FY21 results. NII declined 18.9% y/y to Rs 27,067 crore. PAT surged 80.1% y/y to Rs 6,451 crore. Provisions stood at Rs 11,051 crore as against Rs 13,495.1 crore in Q4 FY20
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