At 8:00 am IST, SGX Nifty Futures was trading at 14,725, compared with Nifty’s close of 14,618 yesterday.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Two
Global stock markets: Dow30, +0.3%; S&P 500, +0.1%; Nasdaq, -0.3%; Kospi, +0.8%; Nikkei, +2%
Yesterday, Nifty gapped higher and managed to hold gains. It advanced further in the last hour and closed near the day’s high. Volume was relatively low. Nifty also reclaimed its 21-DMA and is now trading less than 1% below its 50-DMA. The broader market was also in momentum. Nifty Next50 is now only about 2% below its all-time high. On the sectoral front, barring Nifty Realty (-1%), all other sectors closed in the green. Nifty Pharma (+4%) was the top gainer, followed by Nifty Bank (+1.5%). FIIs sold equities worth Rs 1,110 crore while DIIs sold shares worth Rs 240 crore.
Looking ahead, without trying to predict and decode stories, we will take what the market gives and continue to monitor unfolding conditions. If Nifty falls further and adds a couple of more distribution days, we may change the market status to an Uptrend Under Pressure. On the flip side, if Nifty reclaims its 50-DMA and moves higher, stocks that are breaking out of consolidation with higher relative strength and superior fundamentals can do well. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.
Key Results Today: ADANIPOWER, BLUESTARCO, HEROMOTOCO, SOLARA, TATACONSUM, and others.
Key News:
TATASTEEL’s Q4 FY21 results were in line with estimates. It reported PAT of Rs 6,644 crore compared with a loss of Rs 1,481 crore in Q4 FY20. Revenue grew 39% y/y to Rs 49,977 crore. Margin expanded 15% y/y to 28.4%.
LODHA’s Q4 FY21 sales bookings rose 72% y/y to Rs 2,013 crore. In Q4, it cut net debt by Rs 544 crore.
BAJFINANCE received approval from the Reserve Bank of India to launch a digital wallet.