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 60.26% of traders are net-long, while the number of traders net-short was 39.74%. FII’s unwinded huge longs -5433 & created very huge 15425, while retailers unwinded mild longs -1111 & unwinded very huge shorts -10261. We typically take a contrarian view to crowd sentiment, and the fact retailers are net-long suggests Index may fall in coming days.
Nifty50: 14,850 ▼ -91 (-0.6%) Sensex: 49,161 ▼ -340 (-0.6%)
Following a weak start, the markets remained subdued throughout the day. The market breadth was negative, with 28 of the Nifty50 stocks closing in the red. The Nifty PSU Bank (+1.1%) and Nifty Media (+0.7%) were the strongest among the sectoral indices today, while Nifty Financial Services (-1.2%) and Nifty Metal (-0.9%) were the top losers.
Top gainers Today’s change
Coal India ▲ 5.8%
NTPC ▲ 4.8%
IOC ▲ 4.3%
Top losers Today’s change
JSW Steel ▼ 3.3%
Hindalco ▼ 2.9%
Kotak Bank ▼ 2.9%
Chambal Fertilisers posts strong profit growth
Chambal Fertilisers and Chemicals reported consolidated net profit for Q4FY21 at ₹542 crore, up 169% YoY. Profit growth was supported mainly by lower material costs and other expenses. However, revenue from operations dropped 17% YoY to ₹1,641 crore, owing to a dip in revenues from urea fertilisers.
For the full year, the company reported a 43% jump in net profit to ₹1,747 crore and a 4.2% rise in operating revenue to ₹12,719, due to an increase in sales of non-urea fertilisers. The stock closed 3.3% higher today but has been moving sideways so far this year.
HFCL surges on multi-fold profit growth
Shares of optic-fibre cable maker rose 7.1% as the company reported a 10x YoY jump in net profit to ₹86 crore. Its revenues more than doubled to ₹1,391 crore.
HFCL has a strong order book of ₹6,875 crore and the company is optimistic about its upcoming opportunities in the telecom (5G), railways and defence sectors. The stock has gained nearly 44% so far in 2021.
Sugar stocks continue to rally
Tight global supply from exporters like Brazil and Thailand, coupled with the government’s favourable ethanol-blending policy, augurs well for Indian sugar manufacturers. Higher global prices offer domestic producers better export opportunities, while excess production of cane sugar can be used to produce ethanol.
Amid these conditions, the stocks of Bajaj Hindusthan (+9.7%), Sakthi Sugar (+7.9%) and Simbhaoli Sugar (+4.9%) rose today. Meanwhile, Dwarikesh Sugar Industries, Dhampur Sugar Mills and Triveni Engineering have gained over 75% since the beginning of April.
JMC Projects back in the black
The construction and engineering subsidiary of the Kalpataru Group reported revenue from operations of ₹1,392 crore in Q4. Along with the 42% YoY rise in revenue, the company reported a profit of ₹40 crore.
The company had suffered a loss of ₹73 crore in Q4FY20 on account of a ₹80 crore provision for loans given to the joint venture. Even after adjusting this, the performance in Q4FY21 is strong. The stock closed 1.8% down today, but has risen 23% so far in May.
Despite extremely weak cues from most international indices, the Indian benchmark indices, although negative, showed resilience. Further, investor interest continued to remain strong in the midcap and smallcap stocks as indicated by respective indices—Nifty Midcap (+0.9%) and Nifty Smallcap (+0.8%). This is a holiday-shortened week and critical inflation numbers will be announced tomorrow after market hours. Expect volatility to rise as the markets react to the weekly derivative expiry tomorrow and as they try to absorb the inflation data on Friday.