Tag: distribution day

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Nifty Recovers Sharply to Close Higher; Advance-Decline Ratio in Favor of Decliners

Today’s Action

Nifty, +0.1%; Sensex, +0.2%; Nifty Midcap, -0.5%; Nifty Smallcap, -0.4%; Model Portfolio, +0.2%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Two

After a muted opening, Nifty quickly fell over 180 points within the first 30 minutes of the session. However, as the session progressed, Nifty staged an upside reversal to pare all its losses and managed to close in the green. Thus, it closed above 15,800 for the first time. Of the Nifty50 stocks, 50% closed in the green, led by Tata Motors (+1.5%) and Reliance Industries (+1.4%).

The majority of sectoral indices closed in the red. Nifty Realty (-1.5%) declined the most, followed by Nifty Media (-0.8%) and Nifty Metal (-0.7%). On the flipside, Nifty FMCG, Nifty IT, and Nifty PSU Bank gained 0.1-0.5%. The advance-decline ratio was in favor of decliners, as out of 2,303 stocks traded, 887 stocks advanced, 1,094 stocks declined, and the remaining closed flat.

Nifty is back trading at its all-time high, which is a good sign of further upside. One distribution day is set to expire during the week. However, if the index falls, adds a distribution day, and breaches its key moving averages, we may change the market status to an Uptend 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

Indian Overseas Bank announced its Q4 FY21 results. Net interest income decreased 8.4% y/y to Rs 1,403 crore. PAT increased 143% to Rs 349 crore. Gross NPA improved to 11.69% q/q from 13.07%. Net NPA at 3.58% increased from 3.13%, a quarter ago.

Kajaria Ceramics’s Q4 FY21 revenue increased 46.1% y/y to Rs 952.5 crore. PAT rose 172% to Rs 131.2 crore. EBITDA margin improved to 20% from 14.3% in Q4 FY20.

Gayatri Projects Limited’s Q4 FY21 revenue increased 49.5% y/y to Rs 1,360 crore. It reported a profit of Rs 18.6 crore compared to a loss of Rs 81 crore in Q4 FY20.

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SGX Nifty Indicates Negative Opening; Coal India to Report Results Today

At 8:00 am IST, SGX Nifty Futures was trading at 15,760, compared with Nifty’s close of 15,799 on Friday.

Market Pulse:  Confirmed Uptrend

Distribution Day Count: Two

Global stock markets: Dow30, +0.04%; S&P 500, +0.2%; Nasdaq, +0.3%; Kospi, +0.1%; Nikkei, +0.5%

Last week, Nifty closed higher for the fourth consecutive week, which happened for the first time in 2021. On Friday, it hit a new all-time high of 15,835 and closed around 15,800 for the first time. Sectoral action was mixed during the week. Nifty IT (+4.5%) and Media (+3.5%) were the top gainers, followed by Nifty Pharma (+2.6%). Financial-related sectors declined 0.5–0.7%. Nifty is trading 2.7% and 5.6% above its 21- and 50-DMA, respectively.

During the week, Nifty registered a distribution day for the first time since May 11. 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:

Coal India,  Ifb Industries , Jb Chemicals & Pha. ,  Kajaria Ceramics, and others will report Q4 FY21 results today.

Sun Tv Network ’s Q4 FY21 results beat estimates on all fronts. PAT grew 80% y/y to Rs 449.88 crore. Revenue increased to Rs 782 crore from Rs 735.16 crore y/y.

Adani Enterprises forays into cement business. It incorporated a wholly-owned subsidiary Adani Cement.

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

Sell Watchlist: Advanced Enzyme Techs.

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How to Read the Market Direction?

It is often said, “Only when the tide goes out, do you discover who’s been swimming naked.”

When markets come under pressure, a strict sell-rule is what can protect you from emotional and financial stress. Often, when the market is in a correction, three out of four stocks follow the market direction. Investors often believe they are right in their research and approach and cling on to a stock, even if the markets turn the tide. Selling is the key factor that determines a successful investor from others. If a sell-rule is in place, it provides a clear framework for avoiding biases and emotions to creep into your investing. With the Indian market in a correction, do not hesitate to sell away stocks that breach your sell rules. You simply cannot afford to have a love affair with a stock as it could become an extremely expensive affair.

Post a correction in the markets, a Rally Attempt begins after the markets cool off, and the index trades above the recent bottom for at least three consecutive sessions. A Follow-Through Day is a solid up session, generally a 1.5% or higher gain, with volume being higher than the previous day. A follow-through session officially opens the buying season for leading stocks. Leaders often second the Rally’s confirmation by breaking out of bases near the Follow-Through Day. A Distribution Day is a weak day in the market, when the index closes on higher volume by 0.2% or more. The number of distribution days in the market can be used to gauge the strength in the market

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Nifty Closes Near 15,800; IT and Media Stocks Rally for the Week

Weekly Action

Nifty, +0.8%; Sensex, +0.7%; Nifty Midcap, +2.9%; Nifty Smallcap, +2.9%; Model Portfolio, +2.4%.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Two

Weekly Market Review

Nifty continued its positive momentum for the fourth consecutive week, which happened for the first time in 2021. Today, it hit a new all-time high of 15,835 and closed above 15,800 for the first time. It was a gap-up opening today, with the index staying in the green throughout the session. Barring a 30-minute action at noon, the session was calm, with little price movement. Of the Nifty50 stocks, 46% closed higher, led by Tata Steel (+3.9%) and Jsw Steel (+3.6%).

Sectoral action was mixed during the week. Nifty IT (+4.5%) and Media (+3.5%) were the top gainers for the week, followed by Nifty Pharma (+2.6%). Financial-related sectors declined 0.5-0.7%. Today, the advance-decline ratio was in favor of advancers. Of the 2,255 stocks traded, 1,043 advanced, 910 declined, and the rest remained unchanged.

During the week, Nifty succumbed to a distribution day for the first time since May 11. 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

Ashoka Buildcon was declared the lowest bidder for a project worth Rs 726 crore. The project is to develop the Memmadpur (Ambala) – Banur (IT City Chowk) — Kharar (Chandigarh) Corridor under the Bharatmala Pariyojana.

Deccan Cements announced its Q4 FY21 results. Revenue surged 72.8% y/y to Rs 213.8 crore. It reported a profit of Rs 22.1 crore against a loss of Rs 3 crore in Q4 FY20. EBITDA margin improved to 17.3% versus 9.1% in Q4 FY20.

Goa Carbon ’s Q4 FY21 revenue increased 84.6% y/y to Rs 127.9 crore. It reported a profit of Rs 6.6 crore against a loss of Rs 4.8 crore in Q4 FY20.

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SGX Nifty Indicates Positive Opening; BHEL and DLF to Report Results Today

At 8:00 am IST, SGX Nifty Futures was trading at 15,794, compared with Nifty’s close of 15,737, yesterday.

Market Pulse: Confirmed Uptrend

Distribution Day Count: Two

Global stock markets: Dow30, +0.1%; S&P 500, +0.5%; Nasdaq, +0.8%; Kospi, +0.4%; Nikkei, -0.1 %

Yesterday, Nifty opened the session over 50 points higher and stayed in positive territory throughout the session with little intraday swings. Being a weekly expiry, volatility was on the lower side versus a normal expiry session. Volume was lower than in the previous session. Starting May 28, volume has been below the 50-day average. Barring Nifty Auto (-0.1%), all sectoral indices closed in the green. Nifty Media (+4.6%) advanced the most, followed by Realty (+3.3%) and financial-related sectors. FIIs were net buyers at Rs 1,329 crore, while DIIs were net sellers at Rs 575 crore.

On Wednesday, Nifty registered a distribution day for the first time since May 11. 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:

Beml, Bharat Heavy Electricals Ltd,  Dlf (Nse),  Sun TV Network (Nse), and others will report Q4 FY21 results today.

Nhpc will raise debt up to Rs 4,300 crore through issuance of corporate bonds and term loans. Q4 FY21 revenue was down 12% y/y to Rs 2,091 crore. PAT grew Rs 171% to Rs 427 crore.

The U.S. May inflation came higher than expected. Core CPI rose 0.7% m/m, above estimates of 0.5%.

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

Sell Watchlist: Advanced Enzyme Techs.

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