Zubu Client Sentiment Nifty50 Report & Market Recap (July-07-2021)

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

Zubu Client Sentiment Nifty50 Report July-07-2021)

Nifty50 retail trader data shows 48.83% of traders are net-long, while the number of traders net-short was 51.17%. FII’s unwinded huge longs -5875 & decent shorts -1393, while retailers created huge longs 5345 & unwinded very few shorts -71.

Nifty50: 15,879 ▲+61 (+0.3%) Sensex: 53,054 ▲+193 (+0.3%)

After a shaky start, markets gradually inched up and closed near the day’s high. Of the Nifty50 pack, 33 stocks closed in the green. Among the Nifty sectoral indices, Metal (+2.2%) and Realty (+1.9%) were the top gainers, whereas Media and Auto ended with minor declines of 0.1% each.

Top gainers Today’s change
Tata Steel ▲ 4.9%
JSW Steel ▲ 2.7%
Hindalco ▲ 2.1%

Top losers Today’s change
Titan ▼ 2.0%
ONGC ▼ 1.1%
Maruti Suzuki ▼ 0.8%

Paper stocks surge on rising demand

An expected revival in demand sent shares of paper manufacturers soaring today, with some of the stocks rising as much as 15% in intraday trade. According to reports, the demand for paper is expected to grow at 11–15% in FY22, with schools, colleges and offices set to reopen in the near future.
Shares of major paper makers such as JK Paper, Andhra Paper, West Coast Paper and Seshasayee Paper saw gains of 3–7%. Meanwhile, some of the smaller players such as Orient Paper and Star Paper closed around 10–11% higher today.

Tyre sector likely to see strong growth

The tyre industry is expected to grow by 13–15% in the current financial year, according to credit rating agency ICRA. This could be aided by stable tyre replacement segment, and sharp recovery in the original equipment manufacturer demand and low base of FY21.
With the demand improving, companies are expected to invest ₹20,000 crore for capacity expansion over the next four years. Meanwhile, profit margins are likely to be impacted in the first half of fiscal 2022 by higher prices of raw materials such as natural rubber and oil. Shares of MRF, Apollo Tyres and TVS Srichakra were up by 0.4% to 1% today.

Titan sees strong growth on low base

Titan’s jewellery, watch and eyewear segments grew 107%, 280% and 117%, respectively, in the June quarter this fiscal. This growth was mainly due to the low base of Q1FY21 owing to the nationwide lockdown.
In the context of the government’s rule of mandatory hallmarking of gold jewellery, the company said that all its jewellery stores have a hallmarking license and 100% of the Tanishq, Mia, and Zoya jewellery is hallmarked. Despite a strong recovery in sales numbers, shares of Titan fell 2% today.

Sobha expects strong Q1 numbers

Shares of the Bengaluru-based real estate player soared by 9% intraday, after the company said that it’s June quarter sales rose 45% year-on-year.
The total average price realisation improved by about 2% to ₹7,626 per sq ft. Despite pandemic-related challenges, the company plans to move ahead with its planned new launches of 13.3 million sq ft. The company also believes that it will be able to improve its market share in the residential segment. The stock pared some of its early gains and closed 5% higher today.

Closing bell

Despite the weakness seen in the markets yesterday and weak Asian cues today, both Nifty50 and Sensex bucked the trend and closed at record high levels. Metal and real-estate stocks, in particular, outperformed other sectors. Higher demand for metals (as a commodity) suggests improving prospects for user industries such as auto and construction. Similarly, growth in real estate can translate to higher demand for cement, metals, consumer durables, etc.