Category: Daily Big Picture

Posted on

Nifty Breaches its 50-DMA; Godrej Consumer Surges Post Stellar Q4 Results

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%.

Related article :

Upl Stock Is Breaking Out Of A 5-Week Flat Base Pattern

This Utility-Electric Power Stock Is Nearing A Pivot Point: Tata Power

Posted on

Nifty Adds Distribution Day; Broader Market Outperforms

Today’s Action

Nifty, -0.6%; Sensex, -0.7%; Nifty Midcap, +0.8%; Nifty Smallcap, +0.8%; Model Portfolio, -0.1%

Market Pulse: Confirmed Uptrend

Distribution Day Count: Three

Nifty gapped lower on weak global cues. However, it recovered around 80 points in the opening hour. After a little consolidation, it further moved higher and made a high of 14,900. From there, it reversed and closed around 14,850. As the volume was higher compared with yesterday’s session, we will consider it as a distribution day.

The positive momentum remained intact in the broader market. Midcap and Smallcap indices outperformed benchmark indices. There was a mixed action on the sectoral front. Nifty PSU Bank (+1.2%), Realty (+0.3%), and Auto (+0.3%) closed higher, Nifty Private Banks, Financial Services, and Metals closed more than 1% lower. The advance-decline ratio was in favor of advancers. Of the 2,257 stocks traded, 1,162 advanced, 757 declined, and the rest remained unchanged.

Looking forward, 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

Granules India announced its March quarter results. Revenue grew 33.2% y/y to Rs 799 crore. PAT increased 38% to Rs 127.7 crore. EBITDA margin expanded 860bps to 25.3%.

Firstsource Solutions Q4 FY21 revenue grew 7% y/y to Rs 1,460 crore. EBITDA grew 10.7% y/y to Rs 231 crore. EBITDA margin expanded 50bps to 15.8%.

-Telangana government announced a 10-day lockdown, starting tomorrow.

Related articles:

These Two Stocks Are Trading At A Extended Zone: Alkyl Amines and Dcm Shriram

Rain Industries broke out of a 7-week Cup With Handle pattern

Posted on

Nifty Continues to Edge Higher; Metal and Pharma Stocks Outperform

Daily_Market_Outlook

Today’s Action

Nifty, +0.8%; Sensex, +0.6%; Nifty Midcap, +0.9%; Nifty Smallcap, +1.5%; Model Portfolio, +1.3%

Market Pulse: Confirmed Uptrend

Distribution Day Count: Two

Nifty started the session on a positive note, opening around 100 points higher. It traded in a narrow range of just 70 points relatively lower than in recent times. Thus, it closed in the green for the fourth consecutive session, advancing almost 450 points. Of Nifty50 stocks, 76% closed in the green, led by Coal India (Nse) (+7.5%) and UPL (+7.2%).

All sectoral indices closed in the green. Nifty Metal (+3.1%) and Pharma (+2.8%) advanced the most. The advance-decline ratio was in favor of advancers. Of the 2,298 stocks traded, 1,344 advanced, 612 declined, and the rest remained unchanged.

Currently, Nifty is just 4% off highs, but it has advanced higher on less than average volume, which is not a good sign. Ideally, we would want the volume to be above average for any upward move. However, 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 and adds a couple of distribution days, we may change the market status to an Uptend Under Pressure. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages.

Key News

Posted on

Nifty Closes Near 50-DMA; Metal and Auto Stocks Outperform

Daily_Market_Outlook

Today’s Action

Nifty, +0.7%; Sensex, +0.6%; Nifty Midcap, +0.9%; Nifty Smallcap, +0.6%; Model Portfolio, -0.3%

Market Pulse: Confirmed Uptrend

Distribution Day Count: Two

Nifty started the session on a positive note, opening around 50 points higher. However, with a highly volatile first half, Nifty turned negative momentarily. Good buying rescued the afternoon session and the index closed near the day’s high thus moving near its 50-DMA (14,733). Further upside can be expected if it closes above its 50-DMA on high volume. The advance-decline ratio was in favor of advancers. Of the 2,251 stocks traded, 1,067 advanced, 790 declined, and the rest remained unchanged.

On the sectoral front, barring Nifty PSU Bank (-1.1%) and Pharma (-0.2%), all other sectors closed in the green. Nifty Metal (+2.6%) was the top gainer, followed by Nifty Auto (+1.8%).

Looking ahead, Nifty retaking its 50-DMA is key for further upside. However, 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 and adds a couple of distribution days, we may change the market status to an Uptend 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 News

Posted on

SGX Nifty Indicates Positive Opening; Tata Consumer and Hero MotoCorp to Declare Q4 Results Today

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.