Today’s Market Summarised

Just as we discussed last day, if everything does go well over the weekend, Nifty would be touching fresh highs. And it has indeed touched fresh highs. After opening with a gap-up in the day at 15,270 above the all-time highs, Nifty consolidated for a while as different sectors worked to keep the index at the level but soon broke out. After trading in a tight 90-point range, Nifty closed bullish at 15,314, up 151 points or 1% for the day.

Unlike Nifty, Bank Nifty was bullish throughout the day. Every stock from the index closed in green today with the index of banks moving nearly 1,000 points from the day’s open. Last day the index had ended at a good high and was surely going to bullish today. After creating higher highs, Bank Nifty closed the day at 37,306, up 1197 points or 3.32% for the day. It was the top-gaining sectoral index.

Bank Nifty once again closed as the top-gaining index, closely followed by Nifty Financial Services at 2.87%. Realty gained more than 1.5%. No sector closed more than 0.5% down in the day.

European markets are all trading in the green. Those Asian markets which were open also traded in the green.

News Picks

Shares of Axis Bank and ICICI Bank mainly pushed Bank Nifty up. The stocks have been continuously rallying for the past many weeks. ICICI Bank is at all-time highs, and Axis Bank took resistance at its all-time high today. Can be watched in the coming days as well.

HDFC Bank rallying up more than 2% also did well for Nifty today. The stock has also touched its new highs today and is in uncharted territories along with Bank Nifty.

Tata Motors closed up 2.4% in the day as a confident company said future models of Jaguar will be built exclusively on a pure electric architecture. JLR is generating a lot of free cash flow and aims to be net-debt free by 2025.

Motherson Sumi continued its rally from Friday and closed up nearly 7% for all the reasons we had discussed, including great results and positive commentary.

After reporting a 49% year-on-year increase in net profits to Rs 134 crore, Apollo Hospitals jumped up to close more than 12.5% up in the day. 

Shares of Chola Finance gained more than 13.7% in the day to touch fresh highs. Many financial companies performed well in the day, as was Ti Investments India, another company from Murugappa Group also hit their new high today, up nearly 6%. 

Many Adani Group companies again performed well in the day with Adani Enterprises closing more than 6% up. Adani Transmission closed more than 8.5%. But a correction was seen in all the group stocks near the end of the day.

Shares of Amaraja Batteries closed nearly 6% down as the earnings numbers from the company failed to excite the markets.

Markets Ahead

Another day of gains for Nifty, and such a happy sight as well seeing Bank Nifty back to power again after the consolidation. We all know and had talked about what would happen once a stock/index consolidates. It will give a strong move to one side, and Bank Nifty flew up today. 

Bulls were testing out and looking to outperform and so they did. Also, just as we discussed in the pre-market report today, FII favourite stocks were very likely to perform today. Bank Nifty and Nifty has gained closed near their day-highs saying that we may see more up move.

And HDFC, HDFC Bank and Airtel performed with the exception of Reliance. You can look into the top gainers from Nifty 50 today and see that high holding by Foreign Institutional Investors(FIIs) would be a common theme in most of them, including Bajaj Finance and Axis Bank.

Also last Friday, we had talked about how Adani Enterprises was on the list of Top 50 companies by market cap in India. With the rally taking it to higher highs, will we maybe even see it on Nifty 50 soon? That would actually mean a lot of funds potentially flowing in to the stock.

Check out our article on Trent, and see why it may be the Tata Group’s next multi-bagger stock.

Catch you all on The Stock Market Show tonight!

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