Today’s Action
Nifty, -0.7%; Sensex, -0.6%; Nifty Midcap, -0.7%; Nifty Smallcap, -1.3%; Model Portfolio, -0.9%.
Market Pulse: Confirmed Uptrend
Nifty started the session flat and trended higher in the first half. It hit a fresh all-time high of 15,800, after which it moved down over 230 points to make an intraday low of 15,566. Of the Nifty50 stocks, 78% declined, among which Tata Motors (-2.7%) and Adani Ports and Special Economic Zone (-2.5%) were the major decliners.
Today’s fall was more than 0.2% and volume was higher than in the previous session. Hence, it qualifies as a distribution day. However, the distribution day count remains unchanged as one expired today.
All the sectoral indices closed in the red. Nifty Media (-2.1%) declined the most, followed by Realty (-1.7%) and PSU Bank (-1.4%). The advance-decline ratio was in favor of decliners, as out of 2,258 stocks traded, 713 stocks declined, 1,217 stocks declined, and the remaining closed flat.
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 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
Gail (India) (Nse) announced its Q4 FY21 results. Revenue was down 0.1% y/y to 15,449 crore. Net profit increased 28.3% to Rs 1,908 crore. EBITDA margin increased to 16% q/q against 12.4%.
Indian Mtls.& Fealy.’s Q4 FY21 revenue increased 52% y/y to Rs 576.1 crore. PAT rose 26% to Rs 65.4 crore.
Teamlease Services’s Q4 FY21 revenue was up 0.8% y/y to Rs 1,340 crore. It reported a profit of Rs 18.9 crore against a loss of Rs 29.4 crore in Q4 FY20.
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