Today’s Action
Nifty, +0.2%; Sensex, +0.2%; Nifty Midcap, +0.7%; Nifty Smallcap, +1%; Model Portfolio, +0.6%
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Nifty, after opening briefly in the green, made a high of 15,251. However, it turned negative in the opening hour. Nifty was range-bound and closed 0.15% higher. Broader indices outperformed benchmark indices. The advance-decline ratio was in favor of advancers. Of the 2,259 stocks traded, 1,189 advanced, 760 declined, and the rest remained unchanged. On the sectoral front, barring Nifty FMCG (-0.3%) and Metal (-0.6%), all other indices closed in the green. Nifty PSU Bank closed more than 2% higher, followed by 1.3% gain in Nifty Realty. Nifty Bank, Financial Services, IT, and Pharma closed 0.2–0.9% higher.
Last 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
Wpil received an order worth Rs. 409.70 crore from the Government of West Bengal, which is to be completed over a period of 36 months.
The Ramco Cement’s Q4 FY21 revenue came in line with estimates, while PAT missed estimates. Revenue grew 16.8% y/y to Rs 1,650 crore. PAT grew 46.6% y/y to Rs 214.4 crore. Margin expanded 700bps to 28.4%.
India Cements (Nse) announced its Q4 FY21 results. Revenue grew 26% y/y to Rs 1,449 crore. The company reported a profit of Rs 71.6 crore against a loss of Rs 111 crore for the corresponding period last year. Margin expanded 790bps to 13.8%.
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