Action Construction Equipment and IPCA Labs to Report Results Today

At 8:00 am IST, SGX Nifty Futures was trading at 15,460, compared with Nifty close of 15,338 yesterday.

Global stock markets: Dow30, +0.4%; S&P 500, +0.1%; Nasdaq, -0.01%; Kospi, +0.7%; Nikkei, +2%; Shanghai Composite, -0.1%

Yesterday, Nifty opened muted but gained strength during the session and moved above 15,350. The volatility was high due to monthly F&O expiry. After moving to and fro, Nifty closed 0.2% higher. Volume was comparatively high. Nifty is now less than 100 points below its all-time high. Broader market indices outperformed benchmark indices. Barring Nifty Realty (-1.2%) and Pharma (-0.2%), all other sectoral indices closed in the green. Nifty PSU Bank closed 2.8% higher. Nifty IT (1.2%) continues positive momentum after leading stocks like TCS and Infosys reclaimed their 50-DMA yesterday. The advance-decline ratio was in favor of advancers. Of the 2,259 stocks traded, 1,024 advanced, 893 declined, and the rest remained unchanged. Nifty is trading 3% and 4% above its 21- and 50-DMA, respectively.

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 Results Today: Action construction Equ, Nesco, Ipca Laboratories (Nse), Deepak Fert & Petrochem, and others.

Key News:

Sun Pharm Industries reported its Q4 FY21 results. Revenue was up 4.1% y/y to Rs 8,523 crore. PAT surged more than 2x to Rs 894.1 crore.

Metropolis Healthcare reported its Q4 FY21 results. Revenue was up 40.9% y/y to Rs 291.7 crore. PAT surged almost 4x to Rs 61.3 crore.

Eicher Motors reported its Q4 FY21 results. Revenue was up 33.2% y/y to Rs 2,940.33 crore. PAT advanced 60.9% y/y to Rs 526.1 crore.

Buy Watchlist: Page Industries, Action Construction Equ., State Bank Of India, Ambuja Cements, Eveready Inds.(India), Varun Beverages, Colgate-Palmolive India, Sharda Cropchem, Astral, I G Petrochemicals, Berger Paints India, Icici Bank, Ramkrishna Forgings, Gujarat State Petronet, Apollo Hosps.Enterprise, and Apollo Tricoat Tubes