Today’s Market Summarised

Another crazy expiry day in the market, with the usual volatility seen on Thursdays. Bank Nifty making short-sellers ‘April Fools’ and going up from the red.

Nifty opened the day at 14,798 with a gap-up and looked ready to fall. After consolidating, Nifty broke 14,750 and went down to take support at 14,690 near yesterdays close. With Auto and Metal pulling index up and Bank Nifty flying back, Nifty went up 190 points to reach a new daily high. Nifty closed the day at 14,867, up 176 points or 1.2%.

Bank Nifty opened the day at 33,562 with a gap-up and was pulled down by private banks. 33,200 was taken as good support, inside a crucial support zone for the index. From here, Private Banks along with SBI moved up significantly. Reaching 34,000 was left for another day and Bank Nifty closed the day at 33,858 up 554 points or 1.66% in the day.

Nifty Metal(up 5.33%) was a clear winner in the market today going up from the first minute. All sectoral indices except Nifty FMCG(down 0.16%) closed in the green.

All major Asian markets have closed in the green today. European markets are trading in the green presently.

News Picks

We had talked about huge players in the market saying metal prices will move up further. Steel prices are now rising, and are still expected to go up further. “There has been a price increase. In the last couple of days, we have already increased the prices by about Rs 3,000 per tonne” said CEO of Gallantt Ispat. Gallant Ispat was up 8% in the day.

Metal stocks showed off gains in the market today. All 3 top gainers in Nifty were metal stocks, lead by JSW Steel(up 8.6%), Hindalco(up 7.16%) and Tata Steel(up 6.31%). 

JSW Steel shot up 8% to continue its rally to all-time highs. Recently, they became the largest steel company in the country after acquiring BPSL. The company has also begun hot-rolled plates production at the Dolvi Works plant as of yesterday. Also completed acquisition Of Welspun’s Plates and Coil Mill Business.

With Adani Ports clarifying that they have no engagement with the Myanmar military over the Myanmar port deal, and promoters releasing 2,352 crores worth of pledged shares, the share prices went up 4.82% in the day.

Private banks regained strength in the with IndusInd Bank, Kotak Bank and Axis Bank featuring in the top gainers. All these stocks were in the green, then saw heavy buying near the day close to end 2-4% up. Only HDFC Bank closed in the red(down 0.46%) from Bank Nifty.

With BPCL acquiring a 36.6% stake from its partner OQ, of Oman, in the Bharat Oman Refinery Ltd (BORL) for Rs 2,400 crores, share prices went up 2.2%. The government company is also set to soon be privatised.

TRAI corrected earlier data saying Vodafone Idea gained subscribers in January, to actually losing 23 lakh customers. The company also failed to pay AGR dues for March 31st. Still, stock prices went up 8% in the day.

All Adani stocks were on a rally today. Adani Enterprises went up 7.38% along with Adani Ports at nearly 5%. ATGL, Adani Transmission, Adani Green and Adani Power also closed between 5-10% up.

Auto stocks consolidated and even fell in the first half of the day. But after sales data started to come out, all auto stocks jumped up along with ancillary stocks. MotherSumi was up 4.47%, followed by Ashok Leyland at 4.10%. 

Ashok Leyland posted considerable gains in sales of every category. Total vehicles sales of the company rose by 809% to 15,761 units in March 2021 from 1,734 units, a year ago.

Tata Motors gained 1.92% in the day, followed by Mahindra&Mahindra after positive sales data. Tata Motors reported the highest monthly car sales in 9 years. Total domestic commercial vehicle sales of TaMo rose to 36,955 units in March, compared to 5,336 units last year.

AstraZeneca delivered 29.8 million doses of its Covid-19 vaccine to European Union (EU) member states in the Jan-March quarter. Share prices of the company’s Indian wing gained 14%.

Markets Ahead

HDFC Bank continued to be weak in the market after yesterday’s sharp fall. In fact, Reliance also did not show any strength. 

In the very short 3-day trading week we had, all sectoral indices closed with gains.

GST collection for February has hit an all-time high at Rs 1.24 lakh crore. The government has used this as an indication to point out rapid recovery in the economy. 

Auto sales data has also come out as largely positive, even with the semi-conductor shortage causing a worry in the industry.

With news of the government pumping in money to PSU Banks again, all banks in the PSU Bank index closed with gains of 1-5%.

Nifty closing above 14,850 and that too near the day high gives a lot of positivity. The last many times when Nifty hit 14,880, sharp falls were seen which we did not see today.

Let us see if sentiments change around the weekend, otherwise, we may see some power in Nifty up to 15,000. But Bank Nifty needs to cross 34,000 and help Nifty move.

We have a long weekend ahead of us once again. Do use this time to study charts of trending stocks and ones that are at important levels. 

Happy Easter to all, and hoping everyone will spend the time responsibly with their loved ones.

Catch you all on The Stock Market Show tonight!