Today’s Market Summarised

Bank Nifty takes the backseat while NIFTY rallies with huge power.

Nifty opened the day flat at 16,942 and was bullish. The index quickly created a fresh high near 16,990 before falling 80 points in 15 minutes. But after this, the market saw huge bullishness. Nifty crossed the 17k mark with ease and moved onto 17,050. Even another round of profit booking could not stop Nifty.

After testing 17,150, Nifty closed the day at 17,132, up 201 points or 1.19%.

Bank Nifty opened the day at 36,376 and looked in a mood to take a rest. The index tested 36,200 but did not fall further. This is a good sign for the bulls. However, the index could not sustain above the 36,500 resistance zone. Bank Nifty closed the day at 36,424, up 78 points or 0.21%.

Nifty Metal, Nifty IT, Nifty Finserv and Nifty FMCG closed with good gains. Only Nifty Media closed in the red while other consolidated.

All Asian markets mostly closed in the green after all being in the red today morning. European markets are also all trading slightly in the green currently.

News Picks

Bharti Airtel(+7%) once again closed as Nifty’s top-gainer, ahead of its Annual General Meeting. The company also declined comment on media speculation of investment from Google, which funnily led to more speculation.

Shares of Vodafone Idea(+2.5%) also tried to move up near close with India’s telecom official saying they are looking for a fast rollout of 5G.

The Bajaj Twins once again gained sharply, with both Bajaj Finance(+5%) and Bajaj Finserv(+3.5%) closing in Nifty 50’s top-gainers.

Eicher Motors(+4.9%) moved up with a breakout and closed with gains. We can expect more rally if auto sales data shows growth.

After Aluminium prices hit a 10-year high in the international market, Hindalco(+4.5%) rallied up. National Aluminium(+3.1%) also rallied.

Tata Motors(-1.5%) launched the EV version of the Tigor Sedan starting at Rs 12 lakh. The stock was however very weak.

SRF(+4.3%) jumped after approving the share bonus issue in the ratio 4:1. 

Adani stocks are trying to move up and erase losses from the fall in June. Adani Ent(+4.6%), Adani Ports(+2.5%) closed sharply in the green. Other stocks including Adani Power, Adani Transmission and ATGL closed at upper circuits of 5%.

AU Small Finance Bank(-12.6%) shares crashed after sources said that Sumit Dhir, the Head of Internal Audit At Jaipur Head Office has resigned. He was reporting directly to Sanjay Agarwal, the MD & CEO.

Markets Ahead

Moody’s has kept India’s GDP Forecast for 2021 at 9.6%, and 2022 at 7%. This is unchanged from the last publication in May. They also added that RBI is expected to keep Interest Rates low until economic recovery is seen.

This could have given a lot of confidence to Foreign Institutional Investors to buy heavily in the market today. HDFC moved up with good strength, an FII favourite stock.

You can track Bank Nifty in a 3-month channel if you look at the daily candles. A possible breakout could push the index to all-time highs.

Adani stocks are also gaining back momentum while TCS scales new heights. Infy is likely to see resistance at Rs 1,750 as that is the maximum level at which the company will buy back shares.

The Bajaj Twins also have continued to scale fresh highs after we suggested that it is a must-have in your portfolio. Personally expecting bonus issues in the stocks as price moves up.

As some commented in yesterday’s article, Nifty did indeed cross 17k and move up. Expecting both FIIs and DIIs to be net buyers in the market today.

17,000 will be a short-term support for Nifty going ahead, with major supports at 16,750 and 16,500. But with the kind of rally that we are seeing now, I don’t expect these levels to be seen soon. 

And don’t forget that Bank Nifty still has a long way to get to its 52-week highs. And as we said yesterday, if everyone expects a fall then a reversal, maybe there won’t be a fall at all! But markets will correct at that time when you expect it to keep moving up and up.

Will Bank Nifty give more moves? Will we see a correction in NIFTY tomorrow? Let us know what you think in the comments section of the marketfeed app!

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