Today’s Market Summarised

Nifty closes flat even as Bank Nifty gives another breakout.

Nifty opened at 17,933 and took resistance at the all-time high. After this, the index fell more than 140 points in just 2 hours. Support was taken at 17,800 and the index bounced 100 points. Nifty closed the day at 17,855, up 2 points or 0.01%.

Bank Nifty opened the day at 37,979 with a gap-up and jumped more than 250 points in 10 minutes. The index touched a fresh all-time high of 38,350. Consolidation was seen all through the afternoon, and Bank Nifty closed the day at 38,171, up 341 points or 0.90%.

Nifty Realty(+2.99%) and Nifty Auto(+3.22%) gave a breakout in the day along with Nifty Media(+1.63%). Nifty IT(-2.88%) saw profit booking.

Asian markets closed mostly in the green. European markets are all trading in the green today.

News Picks

Auto stocks gave a breakout in the day with Maruti(+6.4%), Tata Motors(+4.3%), M&M(+4%), HeroMotoCo(+2.8%) and Bajaj Auto(+2.7%) closing in Nifty 50’s top-gainers.

ONGC(+2.8%), BPCL(+1.4%), Reliance(+1.6%) featured in the top-gainers of Nifty 50 with Crude oil prices continuing their breakout in the international market.

OIL, IOC, and HindPetro closed more than 1% up with bullishness.

IT stocks saw profit booking in the day with HCLTech(-4.6%), TechM(-3.3%), Wipro(-3.3%) and Infosys(-2.4%) closing in the top-losers.

Other stocks from the tech sector MindTree(-5.5%), CoForge(-4.4%), LTI(-4%) and Mphasis(-3.7%) also saw profit booking. 

Pharma and related companies also saw profit booking with Divislab(-3.4%), CadilaHC(-1.1%), SunPharma(-0.96%) and Apollo Hospital(-3.5%) closing in the red.

Patel Engineering(+8.1%) wins new order worth Rs 1,251 crores for Teesta-VI hydroelectric project.

Hotel stocks and economic re-opening related stocks moved up in the day. Hotel stocks Indian Hotels(+5.9%), EI Hotels(+12%), EIHA HOTELS(+19.6%), Mahindra Resorts(+3.2%), Chalet(+10.5%) and LemonTree(+6.9%) gained in the day. EaseMyTrip(+3.5%) and IRCTC(+3.9%) shares also gained.

PVR(+5.7%) and Inox Leisure(+8.2%) closed with gains after opening at their upper circuits.

InterGlobe Technology and EaseMyTrip(+3.5%) announced an agreement worth Rs 75 crores.

With news of NSE IPO, shares of BSE(+7.3%) jumped. CDSL hit 5% upper circuit.

Markets Ahead

Shares of Reliance have hit all-time highs and closed above the Rs 2,500 mark for the first time ever. Earlier this month, we had talked about how TCS was catching up to Reliance in market-cap but now the gap is more apparent.

Auto stocks break out was long-awaited in the market, and might keep giving good moves to all-time highs if the general market sustains. Tata Motors DVR has moved 28% and Tata Motors 16% thus far in September.

Soda Ash Futures have hit a fresh-high, jumping more than 8%. Keep a watch on chemical companies.

Our immediate levels of 17,950 as immediate resistance and 17,800 as the immediate support for Nifty were both respected in the day.

Hope you had a great Monday. This week being the monthly expiry, we can expect some volatility in the coming days. Bank Nifty giving a breakout and sustaining near 38,200 gives some confidence to the market. HDFC is also trading near its all-time highs, so keep watching for a breakout.

Hope you had a great week in the market. Have some tea and chill out, with some good charts on the side.