Today’s Market Summarised

Markets move up again with financial stocks taking charge.

NIFTY opened at 17,707 with a big gap-up for the third consecutive day. It traded in a 70 point range before breaking out at noon. After more consolidation, the index formed another day-high near 17,800. NIFTY closed the day at 17,780, up 203 points or 1.16%.

BANK NIFTY opened at 38,752 with a gap-up and shot up. It quickly crossed the 39k mark and took support there. The index traded in a downward channel but saw a strong breakout after 2 PM. Bank Nifty hit its highest level since early November and closed the day at 39,330, up 825 points or 2.14%.

All sectoral indices closed more than 1% in green except NIFTY AUTO (+0.14%) . NIFTY PSU Bank (+3.4%), NIFTY Bank (+2.1%) and Fin Nifty (+1.9%) outperformed on the day. 

Most Asian markets closed in the green for the day. European markets are all trading in the green currently.

News Picks

Financials rocked the top-gainers of NIFTY 50 today. IndusInd Bank (+5.7%), Bajaj Finserv (+5%), Bajaj Finance (+3.3%) and HDFC Life (+3.25%) recovered from last month’s fall.

Kotak Bank (+3.2%) and HDFC Bank (+2.2%) kept their steady performance while Axis Bank (+2.8%) continued to its strongest closing since late October.

National Aluminium (+2.2%) to consider a second interim dividend on 7th February along with its Q3 results. The stock touched its highest level since October along with Hindalco (+0.58%) and NMDC (+3.4%).

PM Modi said today that India can be the global hub for gaming. OnMobile (+15.2%), Nazara Tech (1.6%) moved up

Some healthcare stocks moved up in the day with a boost from yesterday’s budget announcement. Lal PathLabs (+7.7%), Apollo Hospitals (3.4%) and Metropolis (+3.4%) moved up.

HDFC (+1.8%) closed at the day-high with power from its Q3 results announcement. Standalone net profit came out at Rs 3260 crores, up 10% YoY and better than estimates. 

Jubilant Foodworks (-4%) fell sharply after reporting Q3 consolidated net profit Rs 137 crores, up 10% YoY but below estimates.

Markets Ahead

Bank Nifty is showing clear strength in the charts with the level of 40k in sight soon. It has hit a multi-month high with the budget power. SBI is near its all-time high zone and might give more moves if it breaks out.

Tomorrow is the first weekly expiry of February and the crash in India VIX has already given option sellers good profits. So option buyers who go into gamble on Thursday will need to be extra careful.

This was the breakout we discussed yesterday in Bank Nifty.

Keep an eye on crude oil prices as they remain near a breakout zone. This will affect many stocks directly and indirectly in our market. 

I have SBI and Kotak in my portfolio from the banking sector. Do you have banks in your portfolio? If yes, which ones? Let us know in the comments down below.

See you on The Stock Market Show at 7PM!