Today’s Market Summarised

Nifty opened the day with a gap-up at 15,064 and took support, as expected. The index crossed 15,100 without much issue but started taking resistance near 15,130. The opening range was taken as support after noon and Nifty set new day-highs. Cooling down, the index closed the day at 15,127, up 203 points or 1.36%.

Bank Nifty opened with a gap-up but formed a red candle today. The index was not able to break the high made on Friday and took resistance near 36,450. Bank Nifty fell steadily to close the day under the 36,000 level at 35,983, up 0.92%. It was the first red day candle in Bank Nifty since 29 January.

Nifty Auto along with Metals performed the best in the day, followed by IT and Realty. PSU banks fell more than 1%, after many days of gains.

Asian markets have mostly closed in the green. European markets are currently trading in the green.

News Picks

Shares of Mahindra & Mahindra jumped up to hit the upper circuit as the market bounced back from Friday’s fall. There are also reports stating that Amazon is reportedly in talks with Mahindra Electric to source electric three-wheelers for global operations. Shares closed at 7.39% up in the day.

Shares of Tata Motors jumped in early trade then flew near the end of the day after strong consolidation. China has reported higher sales for passenger vehicles, and is a good market for Jaguar Land Rover. The company has also announced Jaguar I-Pace(electric vehicle) in India. Commerce industry has also announced roadmap for Free Trade Agreement with UK, which may benefit JLR.

Shares of Godrej Consumer Products fell with huge volatility after the announcement of the company’s Q3 results. Profits went up 12.8% YoY to Rs 502 crore, revenue up 10%. But margins remained flat. Britannia also fell after Friday’s results announcement.

Most major stocks in Nifty Auto closed in the green with only Bajaj Auto closing flat. Auto ancillary stocks including Mothersumi and BharatForge closed with gains above 4%.

Battery stocks including Exide India and Amaraja Batteries closed well in the green today. This was probably after the Delhi Govt’s push for EVs in the short-term, with tenders being invited for setting up of charging stations. Tata Chemicals also gained more than 2% along with Tata Power.

Carbon and graphite product manufacturing companies including HEG(up more than 10%) and Graphite India(up 20%) closed with huge gains. As we do know, Graphite materials remain among the most used material in lithium-ion batteries. This is part of the EV rally, and these stocks have been rallying a lot.

In fact, all major stocks from the house of Tata mentioned above including Titan and Voltas (excluding Tata Communications) closed with gains as rumours of Tata Sons buying back shares of its companies surfaced. 

All IT stocks went up in the Nifty IT index, except for LTI. Info Edge closed more than 5% up, followed by Coforge, Mphasis, Mindtree and Infy.

Markets Ahead

Auto and IT were set to be the top performers of the day, with them being muted through last week. This was definitely good to see. 

Reliance also contributed nearly 20 points to Nifty today, in a day when 40 out of 50 Nifty stocks closed in the green. 

ICICI Bank was the top contributor Bank Nifty but that honour in Nifty went to Infosys who has closed with a highly bullish candle for the day. We may see some more movement in Large-Cap IT companies if the general market helps.

Nifty has closed in the green for the 6th day in a row, hitting fresh all-time highs. 15,000 will be taken as good support in the coming days, along with 14,800 and 14,400. If the global markets rally sustains, we may see Nifty at 15,500 very soon. Move your pieces intelligently, pick out the sectors which will rally next.

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