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 57.23% of traders are net-long, while the number of retail traders net-short was 42.77%. FII’s unwinded decent longs -4163 & very mild shorts -1704, while retailers created huge longs 12112 & huge shorts 11694. Since starting of this series retailers are highly bullish and today is the first day when they created fresh shorts otherwise they were creating heavy longs since 30-Apr-21.
We typically take a contrarian view to crowd sentiment, and the fact retailers are net-long suggests Index may continue to fall. Support-14100-14000 | Resistance- 15009-15168 till the time either of the side is broken we will be keep bouncing in this range
Nifty50: 14,496 ▼ 137 (-0.9%) Sensex: 48,253 ▼ 465 (-0.9%)
The markets witnessed strong selling in the last hour of trade, which resulted in 34 of the Nifty50 stocks closing in the red.
From the sectoral indices, only the Nifty PSU Bank (+3.4%) witnessed buying. Meanwhile, Nifty Pharma (-2.0%) and Nifty Auto (-0.8%) were the top losers today.
Top gainers Today’s change
SBI Life ▲ 2.6%
BPCL ▲ 1.5%
ONGC ▲ 1.4%
Top losers Today’s change
Tata Consumer ▼ 4.3%
Cipla ▼ 3.1%
Dr Reddy’s ▼ 2.1%
Home First Finance soars on profit growth
The recently listed housing finance company reported income from interest on loans at ₹49.6 crore, up 11.2% YoY. Meanwhile, profit after tax at ₹31 crore was up by over 150%.
For FY21, its assets under management rose 4.4% YoY to ₹4,141 crore. The stock rose 7.4% intraday before closing with gains of 4.5%. Nonetheless, it trades at ₹511, below its offer price of ₹518.
Supreme Industries hits lifetime high
Shares of the leading plastic products maker gained 1.7% and made a lifetime high in an otherwise weak market. The optimism was backed by strong Q4 results, where revenue grew 46% YoY to ₹2,084 crore and profits jumped four-fold to ₹450 crore.
The company envisages a capex of ₹400 crore in FY22 and is in a comfortable financial position. It turned debt-free and has a cash surplus of about ₹760 crore as of March 2021.
Tata Chemicals’ profits down in Q4
Tata Chemicals reported consolidated revenue for Q4FY21 at ₹2,636 crore, up 11% YoY. However, profit after tax for the period stood at ₹29 crore, down by 85%.
Certain one-off costs impacted profits. Its US business was affected by a ₹45 crore spike in energy prices due to Polar Vortex. Further, its UK operations were affected to the tune of ₹24 crore due to a one-time tax asset write off and refinance costs. The stock was down 9.4% today, and has declined 5.6% since April.
Morepen Labs slips post Q4 results
In Q4FY21, Morepen Laboratories reported a 143% YoY surge in net profit to₹26.7 crore. Further, its revenue grew 40% YoY to ₹290.7 crore. In FY21, amongst its business divisions the revenues from home diagnostics grew fastest at 71% to ₹287 crore.
The company had recently approved an investment of $32.5 million from Corinth Group of Switzerland. Shares of Morepen Labs have gained over 100% in April 2021. However, they witnessed profit booking today and were locked in the 5% lower circuit.
Yesterday, the market made a smart come-back from lower levels. However, today investor sentiment was weighed down by the buzz around a nationwide lockdown to control the rising cases. After a strong Q4FY21, a sudden pause in business operations has the potential to derail the street’s growth expectations for FY22. Having said that, the benchmark Nifty50 continues to trade within the broader range of 14,300–15,300. Until there is a decisive break on either side, the markets may continue to send confusing signals to directional traders.