Zubu Client Sentiment Nifty50 Report & Market Recap (Oct-19-2021)

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

 

Nifty50 retail trader data shows 52.28% of traders are net-long, while the number of traders net-short was 47.72%. FII’s created massive longs 22422 decent shorts 3322, while retailers unwinded massive longs -31416 & created high shorts 5277.

Nifty50: 18,418 ▼-58 (-0.32%) Sensex: 61,716 ▼-49 (-0.08%)

After a gap-up opening, the markets witnessed volatility and ended in the red. The market breadth was negative with 34 stocks closing lower. Among the Nifty sectoral indices, only IT (+2.2%) and Financial Services (+0.1) made gains. Whereas, Realty (-4.7%) and PSU Bank (-3.7%) were the top losers.

Top gainers Today’s change
Tech Mahindra ▲ 4.2%
L&T ▲ 3.3%
Infosys ▲ 1.7%

Top losers Today’s change
ITC ▼ 6.2%
Tata Motors ▼ 4.8%
Eicher Motors ▼ 4.5%

LTI Infotech surges on robust Q2 results

Shares of Larsen & Toubro (L&T) Infotech rallied over 19% intraday after the company reported an 11% quarter-on-quarter rise in the September quarter net profit to ₹551 crore. This has surpassed the street estimate of ₹533 crore. In the same period, its revenue also rose 8.8%, which is higher than its larger peers in the IT industry.

The company has added 25 new clients during the quarter with one client in the $50 million+ category. Meanwhile, the company’s attrition rate has jumped sharply from 15% to over 19% within a quarter. Backed by strong demand, the management reportedly expects to clock $2 billion in revenue for FY22. It has achieved about $875 million in the first half of this fiscal year. The stock closed 17% higher on the optimistic note.

HUL Q2 results mixed bag

In the September quarter, India’s largest FMCG player’s standalone net profit rose around 9% year-on-year to ₹2,187 crore. In the same period, the company’s sales also rose by 11% to ₹12,516 crore. HUL’s all three key business segments—home care, personal care and food and refreshment—witnessed growth, with the home care segment growing fastest at about 15%.

But the unprecedented levels of input cost inflation and subdued consumer sentiment continue to pose a challenge, according to the management. The company’s EBITDA margin contracted by 40 bps to 25% with the management expecting the margins to remain under pressure. Meanwhile, shares of Hindustan Unilever were down 3.6% today.

Air traffic soars as travel demand rises

With the easing of restrictions, domestic air passenger traffic in September ‘21 rose 5.4%month-on-month and 79% on a year-on-year basis. In fact, there has been a steady rise in air traffic from 31 lakh air passengers in June ‘21 to more than 70 lakh in September ‘21.

In the wake of the reduction in new cases, ongoing festive season and rising demand for air travel, the government has now allowed airlines to operate at 100% capacity. Meanwhile, the shares of Indigo (-1.9%) and SpiceJet (-1.5%) closed in the red today, inline with an overall weak market.

Closing bell

After a phenomenal rally seen recently, the markets seem to have hit a wall. Most sectoral indices closed in the red, and this happened despite most international indices trading in the green today. Technically, Nifty50 has given a bearish engulfing candlestick pattern on the daily charts. While this pattern has negative implications for the market, traders will wait for today’s low or high to be broken to take a decisive call on the market direction.