Today’s Market Summarised

Nifty closes in the green after a sharp turnaround from the day lows.

Nifty opened the day at 15,536 and moved down in the day. It kept moving down slowly and even went down below 15,500. Just after touching the day-low at 1:15 pm, the index flew back up to 15,600 ranges. Nifty closed the day at 15,576, up 1 point or 0.01%. Now that is consolidation!

Bank Nifty opened at 35,277 and moved down. It took support at the 35,000 zone all along the day. Just in the afternoon, the index broke the opening range and moved up. Bank Nifty closed the day at 35,373, up 37 points or 0.1% in the day.

Nifty PSU Bank gained 3% while Metal closed with gains of 2.18%. Nifty Realty(1.45%) while all other sectors closed flat.

Asian markets mostly closed flat, with some even in the red. European markets are all trading flat and in the green.

News Picks

Major fertilizer shares gained over the day with India expecting a good monsoon this year. UPL(+2.76%) featured as Nifty 50’s top gainer. Pi Industries(+2%) also gained.

Reliance has announced that its Annual General Meeting will be on June 24th. Jio-Google 5G smartphone and Jio laptop launch, and Jio 5G rollout date are expected. The stock gained sharply from day-low to close 1.5% up.

Metal stocks remained volatile with many closing as top-gainers today, after being top-losers yesterday. Tata Steel(+2.1%) and JSW Steel(+1.6%) closed in Nifty’s top-gainers. Vedanta Limited(+2.5%) also gained.

Motherson Sumi reported Q4 consolidated net profit at Rs 714 crores , up 290% YoY and down 10% compared to last quarter. Interestingly, the company reported net debt has reduced to Rs 4,820 crores, down from Rs 6,206 crores in the last quarter(-22%). The stock flew up to close 13% up.

Following this result, other auto ancillary shares gained. Bharat Forge(+4.6%) was the most notable.

Mangalore Refinery & Petrochemicals(MRPL) is set to consider and approve the joining of ONGC Mangalore Petrochemicals Limited (OMPL) with the company. Stock closed 4% up.

Adani Enterprises gained 9.21% in the day, after gaining 8% yesterday. The stock is at all-time high levels. Other Adani stocks including Adani Ports(+1.67%), ATGL(+9%), Adani Trans(+3.9%), Adani Green(+2.9%) performed very well.

Gujarat Gas closed 4.8% up after announcing good results for Q4. The company is also set to acquire City Gas Distribution business for Amritsar and Bhatinda geographical areas from Gujarat State Petronet for Rs 163.31 crore.

Muthoot Finance reported a Q4 consolidated net profit at Rs 1,000 crores, up 20% YoY and flat compared to last quarter. The lender is also considering fundraising up to Rs 5,000 crores. The stock closed 8% up. Peer company Manappuram gained 2% after the results. 

ICICI Securities posted a bullish call on IDFC First Bank and saying ‘Superior incremental unit economics demonstrates business potential’. IDFC First Bank gained 5.91% in the day, while parent company IDFC gained 2.5%.

PSU Banks moved up well in the day. SBI closed 1% up at fresh highs, while PNB gained 5.6%. Central Bank closed 10% up in a day where all participants of the index closed in the green.

HFCL is set to participate in PLI for telecom and networking products manufacturing. The stock closed 3.6% up

Adani Green is commissioning a 150 MW wind power project. This is 9 months before the scheduled date. Share closed 2.3% up in the day.

Lupin gets USFDA approval for Pegfilgrastim Biosimilar application, which is used in chemotherapy. The stock closed 3.1% up.

PVR reported Q4 consolidated net loss at Rs 289 crores vs a loss of Rs 74.5 crores last year vs a loss of Rs 49.1 crores last quarter. The company plans to raise funds around Rs 500 crores. The stock closed 1% up in green after high volatility. 

Glenmark Pharmaceuticals Ltd announced the launch of anti-epileptic drug Rufinamide tablets in the US market. The stock closed 3.3% up.

ITC Limited fell 2.9% after reporting a 3% YoY decline in consolidated net profit to Rs 3,755 crore for Q4.

Midcaps outperformed Nifty 50 with midcap index up 1.4% to post record close.

Markets Ahead

Nifty was mostly in a mood to consolidate in the day. It slowly moved down and broke yesterday’s low and then went further down. But in the last 2 hours, especially with power from Reliance and private banks. 

15,600 continued to act as a resistance but it is only a gap-up distance away now. 

PNB gained in the day as we had discussed it could move up after the PNB Housing Finance’s fundraising news. Other PSU Banks also closed in the green. 

I feel like the market is topping out for this week and clearly consolidating even with the bullish close. One sign of this was midcaps and smallcaps outperforming Nifty 50. Usually this happens when the benchmark index has rallied and is ready to consolidate.

Reliance has closed just near yesterday’s high but above Rs 2,200. I expect that this is the time when Reliance will actually move back to its all-time highs above 2,300.

Keep an eye out for Life Insurance companies as well. They featured among the top-gainers, and are trying to break the bearish phase.

Hope you had a great day in the market!

Catch you all on The Stock Market Show tonight!