Today’s Market Summarised

Market once again consolidates in the day, with a small bearish sentiment after the RBI Governor’s speech.

Nifty opened the day at 15,713 and tried to move up. But all it could do in the first 1 hour was touch a fresh high of 15,734. From here, the index fell slowly more thann 100 points. A small pullback was seen towards the end. Nifty closed the day at 15,670, down just 20 points or 0.13%.

Bank Nifty was much more bearish than Nifty. After opening at 35,665, the index went up more than 200 points very quickly. But from the day’s high, a 600+ point fall was seen. Bank Nifty closed at 35,291, down 357 points or 1%. 

Nifty Bank(-1%) closed as the worst performing sector in the day. Nifty Metal(+1.35%) was up followed by Nifty Media(+1.02%). All other sectoral indices closed flat.

Asian markets also closed flat with a bearish bias. Interestingly, European markets are all trading flat and in the red.

News Picks

With PNB Housing Finance gaining 91% this week, other housing finance stocks moved up today. Indiabulls Housing Finance(+14.23%) and LIC Housing(+6.12%) were the notable gainers.

RBI’s Monetary Policy Committee maintains Repo Rate at 4% while keeping all other rates the same as well. The central banker of India reduces FY22 GDP forecast to 9.5% from earlier estimate of 10.5%. Markets expected the same so no significant move happened.

Adani Enterprises once again shot up in the day, gaining 7.44%. With this, the stock has gained nearly 30% this week. Adani Power is up by 4.9%

Coal India is said to raise the reserve price for the upcoming auction of coal. The stock closed 2.75% up. Along with this, NMDC went up 4% As private miners are said to likely have hiked prices.

Shares of Grasim hit a new 52-week high and closed as Nifty 50’s top gainer. You can read more about the company here.

Jaguar Land Rover’s sales data for May from U.K was published. Total sales for May stood at 7,858 units, up 526% YoY and down 6% compared to last month. Tata Motors closed 2.8% up. 

Also, Tesla is looking to bring its Model 3 cars to India by July-August for testing.

Along with other NBFCs, Bajaj Finserv, Bajaj Finance and HDFC showed up on the top-gainers list with small gains.

With rising international crude oil prices, ONGC shares closed 2.4% up in the day. The stock is up nearly 12% this week.

Bharat Forge reported Q4 standalone net profit at Rs 205 crores against a loss of Rs 11.5 crores last year, and a 65% increase compared to last quarter. The stock shot up and closed 7.9% up.

Gujarat State Petroleum Ltd gained 7.5% after posting good Q4 results yesterday.

RBI announced a Rs 15,000 crore scheme provided for hotels & restaurant sectors. Hotel stocks shot up in the morning.

Indian Hotels(+1%), Lemon Tree(+3.4%), EI Hotel(+5%), EIH Associated Hotels(+20%), Delta Corp(+3.8%) moved after the news. SpiceJet gained 2.4%.

Sources say Niti Ayog has sent IOB(+10%) and Bank of Maharashtra(+13%) names for privatisation policy to Dipam and the Department of Financial Services. The stocks moved up.

Defence stocks including BHEL(+2.1%), BEML(+3.1%), HAL(+1.27%) moved up in the day once again.

Sources say Axis Bank is in talks to acquire Spandana Sphoorty. The finance company’s stock closed 8% up after being up nearly 20% in the day. It was up 20% yesterday.

Top banks including SBIN, HDFC Bank, ICICI Bank and Axis Bank featured in the top-losers segment of Nifty 50 with 1% losses.

Markets Ahead

With the RBI reducing India’s growth outlook for this financial year, the market saw some selling near the top. Weakness was seen in many banking stocks as well. But even when Nifty fell to 15,600, buyers kicked in to take the index back up. 

Also, midcaps and smallcaps again outperformed by closing in the green, while Nifty fell. If you look at the candlesticks Nifty has created in the 1D chart, you can see that there is a loss of strength.

Interestingly, the RBI Monetary Panel has asked the Governmet to cut petrol and diesel taxes. Increased prices in fuel usually pushes up inflation.

Another week has gone by, and Nifty has closed with an amazing 270 point gain from Monday. I personally feel that the next week would see consolidation around this zone. 

With India VIX being low, there is a consolidating market condition now. The high number of Call Options being written around 15,700 also indicate that Nifty’s rally might take a break next week.

How did this week go for you? Nifty has hit all-time highs, so how are your swing and intraday results for the week? Let us know in the comments of the marketfeed app.

Catch you all on The Stock Market Show tonight!