SGX Nifty Indicates Flat Opening; Shriram Transport Finance to Raise Funds

At 8:00 am IST, SGX Nifty Futures was trading at 15,764, compared with Nifty’s close of 15,751, yesterday.

Global stock markets: Dow30, -0.4%; S&P 500, -0.1%; Nasdaq, +0.5%; Kospi, +0.3%; Nikkei, -0.1%

Yesterday, Nifty opened higher but was volatile in the first hour. It gained strength as the day progressed and made a new all-time high. Nifty held gains and closed in the top quartile of the day’s range. Volume was comparatively low. The broader market outperformed. Stocks related to utilities and food and beverages were among the top gainers in midcap and smallcap categories. On the sectoral front, there was a mixed action. Nifty Financial Services, Metal, and Pharma closed 0.2–0.4% lower. On the flip side, Nifty IT, FMCG, and Auto closed 0.4–1.0% higher. Nifty50 is trading around 3.5% and 6.0% above its 21- and 50-DMA, respectively. FIIs were net sellers at Rs 186 crore, while DIIs were net buyers at Rs 983 crore.

Nifty making a new high, the broader market back in momentum, distribution day count down to two, and no distribution day after May 11 are positive signs for a sustainable rally. 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:

Shriram Tran.Fin launched QIP worth Rs 2,000 crore. Floor price set at Rs 1,433 per share.

Union Bank of India ’s PAT beat estimates, while NII was below estimates. PAT grew 83% q/q to Rs 1,329 crore. NII declined 18% q/q to Rs 5,402 crore. The bank plans to transfer Rs 7,800 crore of NPAs to national ARC in phase 1.

Icici Prudential Life Insurance announced an annual bonus of Rs 867 crore for all eligible participating policyholders for FY21.

Buy Watchlist: Nippon Life India Asset Management, Bajaj Finance, Sbi Cards And Payment Services, Ambuja Cements, Eveready Inds.(India), Varun Beverages, Colgate-Palmolive India, Sharda Cropchem, Astral, Berger Paints India, Icici Bank, Cholamandalam Inv.& Fin., Tata Power, and Apollo Hosps.Enterprise