Today’s Market Summarised

Nifty opened the day with a big gap-up at 14,377 and crossed 14,400 soon. But the index came down, tested 14,350 and then flew up throughout the day. In fact, the index kept on moving till almost 3 pm, going up 200 points from the day low. Nifty closed the day at 14,521, up 239 points or 1.68%.

Bank Nifty too opened the day with a gap-up above 32,000 and came down to test 31,850. But from here the index went up more than 600 points calmly over the day. Bank Nifty closed the day at 32,424, up 613 points or 1.93%. Every stock in the index closed in the green today.

Nifty Realty went up to close more than 4.2% up today, closely followed by Metals(up 2.9%). And just opposite to the last few days, every single sectoral index closed in the green. 

Major Asian markets have all closed in the green today, while European markets are trading flat.

News Picks

Shares of Bajaj Finance and Bajaj Finserv, together known as the Bajaj Twins went up to be top-gainers of the day in Nifty 50. This is ahead of the quarterly results of both companies to be declared tomorrow. 

As CLSA continued its bullish call on Tata Motors, with an expectation of a turnaround in the business of JLR and India businesses, Tata Motors rebounded back 5.16% today. 

With an expectation of good Q3 profit numbers, metals moved up today. Hindalco and JSW Steel featured in the top-gainers list.

Always going against the tide, ITC closed among the top losers (by just 0.41%) when Nifty went up today. The stock was up in the last few days when the market fell. There were only 5 losers in Nifty 50 today.

Shares of IDFC First Bank climbed yet another 7.5% today. The company announced further disruption with by offering interest-free cash withdrawal on credit cards. It was generally a good day for Bank Nifty, with no participants closing in the red. 

Just ahead of the January 22 record date for its Rs 3,000 crore rights issue, L&T Finance went up more than 7.5% in the day. Rights issue opens on February 1. And also generally, finance stocks did well today with Cholamandalam Finance, Indiabulls Housing Finance, HDFC also gaining sharply along with Bajaj Twins.

Pharma may be up for a quarter of not so exciting returns with Alembic Pharma reporting a 14% YoY increase in net profit to Rs 259.2 crore. Revenue rose 9% YoY to Rs 1,314 crore. This 14% increase is “not exciting” because of the stellar rally in Pharma stocks in the last 1 year. Alembic Pharma fell more than 3% in the day.

With an increase in expectation of ‘Big Bang Releases’ like Tamil movie Master, theatre stocks including PVR (up more than 1.5%) and Inox (up more than 2%) went up in the day. 

Shares of Reliance went up more than 1% and moved Nifty significantly(by more than 23 points). The stock is seeing a technical rebound this week after remaining bearish for many days.

Markets Ahead

Asian markets staged a good comeback in the day, with our markets also closing significantly up. We can see the bullishness coming back into Nifty with today’s sharp rally. The last two days of losses was covered almost in today’s rally.

Reliance also performing well is a really good sign. The stock has a long way to go till its all-time high, but I am always bullish on it in the long-term.

With the US Markets being closed yesterday, there were not many cues for Nifty. But Dow Futures have been trading on the green, which also boosted Nifty’s sentiments.

Again, the stimulus and Biden’s inauguration are the big international cues coming up. Rumours are that a many trillion dollar stimulus will be passed by Democrats soon, with the party holding the White House, Senate and the House.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.