Today’s Market Summarised

Nifty stays strong despite pressure from global markets, and closes the day with a green candle.

NIFTY opened the day at 17,930 and moved up. Resistance was found at 18,000 and the index fell more than 130 points. But after noon, the market regained strength and broke the day-high just near closing. Nifty closed the day at 17,992, up 46 points or 0.26%.

Bank Nifty opened the day at 38,211 and tried to shoot up. Mostly there was a consolidation found in the index till 2 PM. After this, a strong breakout took the index to fresh all-time highs at 38,600. Bank Nifty closed the day at 38,521, up 228 points or 0.59%.

NIFTY FMCG(+1.2%), NIFTY MEDIA(+1.4%) and NIFTY METAL(+1.1%) closed in the green. NIFTY PSU BANK(+3%) shot up near the closing time. NIFTY IT(-0.88%) closed in the red again.

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

News Picks

Titan(+5.5%) shares hit a record high on the back of heavy buying. The stock closed as Nifty 50’s top-gainer. Check out this article to know more about Titan’s rally.

Multiple two-wheeler stocks closed with gains today in Nifty. Bajaj-Auto(+3.2%), Hero Moto Corp(+2%) and Eicher Motors(+2%) closed in green.

Divi’s Lab(+1.6%) saw buying near the close as German biopharma company Merck applied for approval of its new Covid-19 drug, Molnupiravir. Merck is tied up with Divi’s in India for manufacturing the drug.

SBI(+2.9%) closed at a record high market cap along with a rally in other PSU Banks towards closing.

From the FMCG sector, ITC(+1.3%) and Nestle(+1.7%) closed in Nifty’s top-gainers. Marico(+2.4%), Jubilant Food(+5.2%) and Hindustan Unilever(+1.1%) also gained along with Dabur(+1.3%). Radico(+14.7%) continued its rally from yesterday after announcing two new products. UBL(+1%) and United Spirits(+1.1%) also moved up.

HCL Tech(-4%), TechM(-1.8%) and TCS(-0.9%) closed in the top-losers from the IT sector. LTTS(-1.5%) and Coforge(-1.5%) also moved down.

PSU Banks including IDBI(+20%-UC), Indian Bank(+9.6%), Canara Bank(+5.9%), IOB(+4.2%), Union Bank(+3.9%), SBI(+2.9%) and other closed well in the green.

As Aluminium prices hit multi-year highs, Hindalco(+2.2%), National Aluminium(+5.2%) and Vedanta(+4.8%) closed with gains.

Auto parts companies moved up mostly in the day. Schaeffler(+5.7%) had opened with a gap-up and closed in the green after considering a stock split. Mothersumi(+1.9%), Bosch(+1.7%), Endurance(+7.5%) closed in green.

Analysts said that they expect discretionary players like Avenue Supermarts(+0.4%), Titan(+5.5%), and Jubilant FoodWorks(+5.2%) to record a stronger recovery in this quarter. Avenue Supermarts, Titan, Jubilant FoodWorks, Indian Hotels(+3.3%), Oberoi Realty(+1.5%), Barbeque Nation(+6.7%) and Vardhman Textiles(+7.6%) are some of the stocks that hit fresh record highs today. 

Consumption shares are on a high ahead of the festive season. V-Guard(+1.6%), Whirlpool(+3.7%), Havells(+2.7%), Trent(+2.7%) and others closed with gains.

Tata Power(+2.2%) received orders worth Rs 538 crore and moved up.

Cinema theatres to open in Mumbai from Oct 22nd with 50% capacity. PVR(+0.84%) and INOX(+0.61%) closed slightly in the green.

Future Group companies moved up after reports that they are looking for an out of court settlement with Amazon.

Cochin Shipyard(+3.5%), GRSE(+8.4%) and Mazagon Dock(+2.9%) moved up.

Coal Minister Prahlad Joshi said that Coal India’s(-1.8%) target of producing 100 crore tonnes by FY24 will be delayed and shares of the company moved down.

DeltaCorp(+4.7%) moved up after posting a consolidated loss at Rs 22.57 crore in Q2FY22 against a loss of Rs 54.91 crore in the same quarter last year. 

Ujjivan Small Finance Bank(+10.8%) moved up after reporting total deposits are up 31% year-on-year at Rs 14,090 crore in Q2. CASA Ratio has also improved at 22% compared to 16% last year.

Angel Broking(+4.8%) has added a huge 23.8 lakh customers during April-September, taking the overall client base to 65.2 lakh.

Markets Ahead

NIFTY closed in the green with support from Titan and financial stocks. As we had discussed yesterday, banks are boosted by the airline industry getting fully privatised by the Air India takeover. 

In the Auto sector, M&M has said that the availability of chips is improving, that the worst part is over. This could be the reason why there is some positivity in the auto sector recently.

Bank Nifty and Nifty both have closed with bullishness in the day. This was despite HDFC Bank and HDFC not performing in the day.

Keep watching financials and midcaps over the coming days. Nifty’s all-time high of 18,050 also should be on your radar for tomorrow. 

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