Zubu Client Sentiment Nifty50 Report:
It is a Post Market Analysis, by which one can understand Retail trader’s sentiment and discover who was going long and short, the percentage change over time, and whether market signals are bullish or bearish.
Nifty50 retail trader data shows 53.63% of traders are net-long, while the number of retail traders net-short was 46.37%. FII’s unwinded decent longs -2941& huge shorts -6955 , while retailers created huge longs 5229 & huge shorts 8819.
Nifty50: 14,296 ▼ -63 (-0.4%) Sensex: 47,705 ▼ -243 (-0.5%)
After a gap-up opening, the markets slid throughout the day and closed in the red again. Interestingly, market breadth was almost evenly split, with 23 of the Nifty50 posting gains. Among the sectoral indices, Nifty Media (+3.0%) and Nifty Pharma (+1.2%) were the strongest gainers, while Nifty IT (-1.3%) and Nifty FMCG (-0.6%) receded the most.
Top gainers Today’s change
Dr Reddy’s ▲ 3.5%
Bajaj Fin Serv ▲ 3.4%
HDFC Life ▲ 3.0%
Top losers Today’s change
Ultratech Cement ▼ 4.9%
HCL Tech ▼ 3.3%
HDFC ▼ 3.3%
Subex soars ahead of product launch
The stock of the Bengaluru-based telecom analytics solutions provider surged 8.9% today, following the announcement relating to its new AI-based automation product. The product is due for launch on 22 April.
In fact, the stock has risen about 61% in April, while the Nifty50 has declined about 2.7%. Interestingly, the stock has a 52-week low of ₹15.3, which was recorded on 13 Nov 2020. That is a 275% rise in five months.
Second wave hurts auto sales
Despite sales-boosting occasions like Gudi Padwa and Navratri in April, two-wheeler sales declined on account of covid restrictions. Reports suggest that sales are already down 30-35% YoY so far in April. If the demand fails to recover during this mini-festive and wedding season, reports suggest that recovery may be pushed to October.
In general, the street expects sales in most auto segments to drop in April due to the restrictions. The Nifty Auto index is down about 2.3% in April so far. Notably, Nifty50 constituents such as Maruti, Eicher Motors, Bajaj Auto and Hero Moto have seen corrections of 2-10% in April.
EKC jumps on oxygen cylinder shortage
The shortage of oxygen cylinders in the country amidst rising Covid cases has triggered investor interest in shares of Everest Kanto Cylinder (EKC). Its shares have hit their 20% upper circuit for the last two days.
EKC has over 50% market share in the domestic cylinder business. The street expects the company to see volume growth in its medical equipment segment.
Sobha surges on rating outlook
Shares of the Bengaluru-based real estate developer surged 11% intraday coupled with high volumes. The buying interest was observed after the developer was assigned a long term issuer rating of IND AA-, with a stable outlook.
The key rating drivers include the developer’s strong launch pipeline, diversified revenue profile and a large land bank (development potential of 205 mn sqft). Its shares closed 3.5% higher compared to a modest gain of 0.3% in the Nifty Realty index.
The news of the vaccination drive commencing for those 18 years and above from 1 May triggered bullish sentiments and markets responded with a gap-up opening. However, the morning frenzy was short-lived and the market skid for the rest of the day. The cues from the international indices were negative too. We’re in a holiday-shortened week and no major domestic data release is expected. In such a scenario, Q4 results and buzz relating to covid-restrictions could continue to swing the markets.