Weekly Action
Nifty, -1.0%; Sensex, -1.0%; Nifty Midcap, -0.7%; Nifty Smallcap, +0.3%; Model Portfolio, +0%.
Market Pulse: Confirmed Uptrend
Distribution Day Count: Three
Weekly Market Review
After retaking its 50-DMA last week, Nifty breached that level this week. The next level of support at its 100-DMA is just 100 points below the closing price. Historically, 100-DMA has been a good support for Nifty. Today, it opened with a 50-point gain, but succumbed to profit booking and quickly turned negative. It was a volatile session as the day’s range was more than 150 points.
On the sectoral front, Nifty PSU Bank (+3.7%) was the top gainer for the week, followed by Nifty Media (+2.4%). On the flip side, Nifty Metal (-4.6%) which rallied the most in the past few weeks, succumbed to profit booking during the week. Today, the advance-decline ratio was in favor of decliners. Of the 2,264 stocks traded, 777 advanced, 1,142 declined, and the rest remained unchanged.
One distribution day was added during the week, increasing the count to three. Nifty trading below its 50-DMA is a cautious sign. We expect the Nifty to hold its 100-DMA. However, if it breaches its 100-DMA, it opens further downside. Continue to trim or avoid ideas lagging and/or breaking down below major moving averages. We would downgrade the market status to an Uptrend Under Pressure if Nifty breaches its 100-DMA and/or distribution day count increases.
Key News
Dr. Reddy’s Laboratories Q4 FY21 revenue grew 6.7% y/y to Rs 4,728 crore. PAT was down 27.5% y/y to Rs 554 crore. It also announced a dividend of Rs 25 per share.
Jindal Stainless announced its Q4 FY21 results. Consolidated revenue from operations grew 26.5% y/y to Rs 3,913 crore. It reported a profit of Rs 292 crore against a loss of Rs 66 crore in Q4 FY20.
Escorts announced its Q4 FY21 results. Revenue from operations increased 60.8% y/y to Rs 2,229 crore. PAT surged 122% to Rs 285 crore. EBITDA margin improved 230bps to 15.4%
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