At 8:00 am IST, SGX Nifty Futures was trading at 14,750, compared with Nifty’s close of 14,677, on Friday.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Global stock markets: Dow30, +1.1%; S&P 500, +1.5%; Nasdaq, +2.3%; Kospi, -0.1%; Nikkei, -0.6%; Shanghai Composite, +0.9%
Nifty breached its 50-DMA last week. The next level of support is at its 100-DMA, just 100 points below the Friday’s closing price. Historically, 100-DMA has been a good support for Nifty. On Friday, it opened with a 50-point gain, but succumbed to profit booking and quickly turned negative. It was a volatile session as the day’s range was more than 150 points.
On the sectoral front, Nifty PSU Bank (+3.7%) was the top gainer for the week, followed by Nifty Media (+2.4%). On the flip side, Nifty Metal (-4.6%) which rallied the most in the past few weeks, succumbed to profit booking during the week. Friday, the advance-decline ratio was in favor of decliners. Of the 2,264 stocks traded, 777 advanced, 1,142 declined, and the rest remained unchanged.
One distribution day was added during the week, increasing the count to three. Nifty trading below its 50-DMA is a sign of caution. We expect Nifty to hold its 100-DMA. However, the breach of 100-DMA opens a further downside risk. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages. We would downgrade the market status to an Uptrend Under Pressure if Nifty breaches its 100-DMA and/or distribution day count increases.
Key Results Today: Bharti Airtel, Federal Bank, Colgate Palmolive India, Orient Cement, Shakti Pumps India, and others.
Key News:
Quick Heal Technologies reported its Q4 FY21 results. Consolidated revenue jumped 63.9% y/y to Rs 105.3 crore. PAT surged 3.9x to Rs 39.7 crore.
Geojit Financial Services reported its Q4 FY21 results. Revenue increased 47.4% y/y to Rs 121.4 crore. PAT grew 88.6% to Rs 37.2 crore.
Larsen & Toubro’s Q4 FY21 PAT was above consensus. Revenue rose 8.7% y/y to Rs 48,087.9 crore. PAT increased 3% to Rs 3,293 crore.
Buy Watchlist: Ramkrishna Forgings, Hindustan Zinc (Nse), Pi Industries, Relaxo Footwears, Tata Power, Gujarat State Petronet, Apollo Hosps.Enterprise, Eris Lifesciences, Asian Paints, Mphasis (Nse),Chambal Fert. & Chems, Lux Industries, Rain Industries, Apollo Tricoat Tubes, and Balkrishna Industries
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