Today’s Market Summarised

A crazy day in the market with profit booking in NIFTY and an all-time high in Bank Nifty.

NIFTY opened the day at 18,384 with a 120 point gap-up. There was heavy profit booking in IT stocks and Reliance, pushing the index down and down even below 18,200. Few attempts to bounce back did not work and the index fell to a key support of 18,050.

From here, the index bounced back 170 points with institutional buying. At the end of the day, NIFTY closed at 18,178, down 88 points or 0.48%.

BANK NIFTY opened the day flat at 39,643 and was in a mood to consolidate. The index did not fall much compared to profit booking in the general market. The index created a day-low by 2:30 PM, but the power it showed from there was unbelievable. With a jump of 770 points in the last hour, BANK NIFTY closed the day at 40,030, up 512 points or 1.3%.

NIFTY PSU BANK(+2.7%), NIFTY BANK(+1.3%) and FIN NIFTY(+1.2%) closed strongly in the green. NIFTY IT(-2.5%), NIFTY METAL(-1.7%) and NIFTY REALTY(-1.4%) closed in the red.

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

News Picks

Kotak Bank(+6.3%) closed as NIFTY 50’s top-gainer after showing strength from the morning. It was joined by ICICI Bank(+1.2%) and HDFC(+1.7%) from the finance sector.

RBL Bank(+4.2%), M&M Finance(+3.9%), Shriram Transport Finance(+3.6%), PNB(+3.6%), Bank of Baroda(+3.5%) and Chola Fin(+3.2%) also moved up.

Tata Motors(+4.3%) jumped up with major research houses upgraded target for the stock. Tata Motors DVR(+10%-UC) jumped up even more with news that Rakesh Jhunjhunwala increased his stake in it for the last quarter.

Energy stocks BPCL(+2.2%), NTPC(+1.1%), Coal India(+1%) and IOC(+0.84%) closed among the top-gainers of Nifty. 

Deepak Nitrite(-4.8%) fell sharply after the Ministry of Finance cancelled Anti-dumping duty on Phenol imports from the European Union, Singapore, and Korea. Chemical stocks including Balaji Amines(-7.8%), Pidilite Industries(-4.6%), Tata Chemicals(-2.9%) and more also fell.

Asian Paints(-5.2%) closed as the top-loser in NIFTY with the company reporting Q2 consolidated net profit at Rs 600 crores, down more than 26% YoY. Results were below estimates. Berger Paint(-6.2%), Indigo Paints(-1.3%),Akzo Nobel(-1%) and Kansai Nerolac(-3.1%) also fell.

After hitting an all-time high on Monday, the metal index is down nearly 7% from this level. Today, Hindalco(-3.7%) and Tata Steel(-2.1%) led the fall for NIFTY 50. Hindustan Copper(-4.4%), Hindustan Zinc(-4.9%), JSW Steel(-1.6%), Jindal Steel(-1.6%), Vedanta(-1.6%) and APL Apollo(-3.4%) closed in the red.

IT stocks saw profit booking in the day. Infosys, TCS and HCL Tech closed in the top-losers. Coforge(-6.3%), MindTree(-6.3%), LTI(-4.1%), LTTS(-4.5%), Mphasis(-2.1%) also moved down.

Midcap stocks including Havells(-8.5%), Voltas(-4.4%) and others closed in the red after profit booking.

Markets Ahead

The day was indeed a crazy one, especially in Bank Nifty. What a rally towards the end from day-low to jumping more than 700 points in 1 hour. I am sure a lot of people would have made huge losses and huge profits in that last 1 hour.

IT stocks saw a healthy profit booking. If stocks in your portfolio from this sector are moving to deeper reds, you can consider this as a good time to average.

Nifty took support at its important level of 18,040-18,050 today. And from here a strong bounce back was seen and near market closing, the index was above 18,200. We can consider this as support taken in the index.

Looks like it is Bank Nifty’s time to shine now. The index is at all-time highs near closing time and might see more rally. Stocks that showed strength in yesterday’s fall like we mentioned including Kotak Bank closed with gains. The PSU Bank index also closed strongly in the green.

Hoping to see more rally in the market soon. Yesterday, the U.S. indices closed at all-time highs after many weeks of a downtrend. The bullishness there along with the economic situation in India getting better might prompt more Foreign Institutional Investors’ money to flow in. Keep a watch on heavyweights HDFC and HDFC Bank along with other FII favourite counters like Kotak and Bajaj Twins tomorrow.

Meet you all on The Stock Market Show at 7 PM on YouTube!