Today’s Market Summarised

The surprises with Nifty continues. With continued power from yesterday’s Union Budget, Nifty was powered up throughout the day and charged ahead. It has closed today with more than 1,000 points from Friday’s closing level.

As was expected, Nifty opened with a gap-up at 14,483 and went up flying. And it stopped and took resistance at nearly the same point as Nifty’s all-time high near 14,730-’750. That level is meant for another day I guess. After touching that level, Nifty quickly fell to take support at 14,500. Then, Nifty slowly moved up from this spot to close at 14,647, up 366 points or 2.57%.

Bank Nifty also followed a very similar pattern. It opened with a very significant gap-up at 33,637 and went up more than 1000 points in less than 20 minutes. After coming back down, the index consolidated in a very volatile range and closed at 34,267 up 1178 points or 3.56%.

Nifty Realty and Nifty Auto continued to fire till the end of day and overtook Bank Nifty as the top gaining sectors. Nifty Media also did well in the day. All indices closed in green today.

Asian markets have all closed in the green today just like yesterday. European markets are also in the green.

News Picks

Tata Motors shares rocked in the day to go up 15%. What less can be said about this. The share has broken many technical resistances and soared high in the day to close as Nifty 50’s top gainer. Surely the increase in Domestic Sales and exports of the company would have helped, as we talked in the pre-market report and scrappage policy announced yesterday. Ashok Leyland also went up more than 8.4%.

Cement stocks rocked throughout the day, as the market realised how beneficial the budget was for these stocks. ShreeCements gained 7.7% while UltraCements gained 6.6%. Grasim also followed UltraCemCo with 5.72% gains.

Shares of SBIN gained 7.2% as the government’s continued faith in PSU banks brought in positivity to the stock. It was one of the top performers in Bank Nifty followed by HDFC Bank gaining more than 5.6%.

After Customs duty on metals was reduced in the budget, metal stocks in the country got confidence from the promise that the price hike in steels won’t be looked at negatively. The customs duty decrease might help the steel prices to stabilise a bit, and remove negative eyes from the sector which has seen big price hikes in steel. Hindalco, JSW Steel gained, even when SAIL fell 5%(it has still gained 7% in the last 7-days).

Shares of Realty stocks went up with cement stocks and builders stocks going up. Godrej Properties, DLF and Pheonix Ltd posted good gains in the day.

L&T also gained 4.92% in the day, with infra stocks going up following the budget. You can read about stocks which will benefit from the budget here.

Shares of Power Grid went up 3% while Siemens went up 7.86% after positive declarations for power companies.

Media index rallied with ZEEL, SunTV and PVR giving good movements. Shares like ZEEL have bounced from a beautiful rebound from its 214-level. Check the charts, and maybe there are many many such rebounds waiting to happen.

Escorts reported a revenue increase of 24% YoY increase in net profit at Rs 2,042.2 crore. Net profit is up 85% YoY at Rs 286.4 crore.

Dixon reported a revenue up 120% YoY to Rs 2,182 crore, with an increase in net profit up 134% YoY at Rs 61.6 crore. The company has also approved a 1:5 stock split.

HDFC’s net interest income rose 26% year-on-year to Rs 4,608 crore in Q3. Net profit of the nation’s largest mortgage financier declined 65% YoY to Rs 2,926 crore in the quarter.

Indigo Paints listed with stellar gains, with over 100% profits being booked by the lucky ones allotted a lot in IPO.

Markets Ahead

Bank Nifty has again gained in the day posting stellar gains. But like was discussed in the pre-market report, it was time for other sectors to shine today. Autos flew sharply with the boost from Tata Motors who is on a stellar bull run.

Nifty has gone up and took resistance at its all-time high. This sudden reversal in sentiments may see a lot of index or stock futures shorters to book losses. This might be the reason for the wide gap between Nifty and Bank futures price vs spot yesterday, although it has stabilised a bit today.

Making it clear, rallies like this are amazing opportunities that the markets offer once in a while. Try to make use of it. Keep watching for Reliance, it has crossed and closed above 1900 with a lot of confidence after noon.

The global markets going green is also bringing in a lot of positivity to the index. This is one reason why I am once again bullish on the market. As long as global markets look good, our market being strong by itself will continue the rally. Even if Nifty does slow down, there will be a lot of stock opportunities. So as is always, the search for more and more ‘multi-bagger’ stocks for your portfolio should continue.

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