Today’s Action
Nifty, -1.0%; Sensex, -1.0%; Nifty Midcap, -0.8%; Nifty Smallcap, -0.6%; Model Portfolio, -0.9%
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Nifty opened flat and quickly succumbed to selling pressure and lost over 120 points within the first two hours of trading. The index pared most of its losses as some buying was seen at the lower levels. But as the selling pressure overtook the index again, Nifty closed near the day’s low. The index escaped a distribution day as the volume was slightly lower than yesterday’s.
There was a mixed action on the sectoral front. Nifty PSU Bank (+3.2%), Media (+0.7%), and Auto (+0.2%) closed higher. On the flipside, Nifty Metal (-2.9%) declined the most followed by financial-related stocks especially private banks. The advance-decline ratio was in favor of decliners. Of the 2,258 stocks traded, 910 advanced, 1,023 declined, and the rest remained unchanged.
On a technical perspective, Nifty breached its 50-DMA, which is not a good sign. 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. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.
Key News
Airtel Africa announced its March quarter results. Revenue was up 0.4% y/y to $1,038M. PAT increased 38.9% to $132M.
Godrej consumer product’s shares were up 21.9% as the company reported a 59% jump in its profits for the March quarter.
Vodafone Idea added 6.5 lakh customers in February and expanded its total subscribers to 282.6M. This is the first month of subscriber addition since October 2019. Its market share in wireless subscribers stood at 24.2%. The stock advanced 8.6%.
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