Today’s Market Summarised

NIFTY rallies with power from Reliance hitting a 52-week high and all-time high market cap.

Nifty opened the day at fresh all-time highs of 17,267 with a small gap-up and immediately went up to test 17,300. A small correction pulled the market down 100 points. After a few tries, the index broke the morning high and closed at fresh all-time highs. Nifty ended the day at 17,323, up 89 points or 0.52%.

Bank Nifty opened the day at 36,907 and shot up above the 37k mark immediately. However, these gains were not sustained and the index slowly moved down throughout the day. After taking support at 36,550, Bank Nifty closed the day at 36,761, down 70 points or 0.21%.

Nifty Auto(+1%), Nifty Metal(+1.1%), Media(+1.4%) and Realty(+1%) closed with gains. Most other sectors consolidated in the day.

Most Asian markets closed in the green with Japan’s Nikkei closing 2% up. European markets are all trading mixed and flat currently.

News Picks

Reliance(+4.1%) shot up in a rally that was long-due. The stock has been in a bullish mood from the day the Supreme Court ruled against the company in the Future Group takeover case. 

In the International Climate Summit, Mukesh Ambani today talked more about his plans to aggressively move into green energy in the international market.

ONGC(+3.7%) moved up and closed among top-gainers after the government oil company pumped first gas from its deep-water U1B well in Krishna Godavari in the Bay of Bengal. Crude oil prices have also been recovering after last month’s fall.

Prepare for higher petrol prices again

Other energy shares including Coal India(+3.3%), Indian Oil(+2.6%), BPCL(+2.4%) featured in the top-gainers of Nifty 50. Hind Petro(+3.4%) also closed in the green.

HDFC Life is acquiring Exide’s Life Insurance business. The stock of HDFC Life(-3.2%) crashed with Exide(+6.4%) jumping.

Metal stocks continued their crazy moves and mostly closed in the green. National Aluminium(+4.8%), Jindal Steel(+3.9%), Coal India(+3.3%), SAIL(+1.3%) and Tata Steel(+1.3%) closed with gains from the Nifty Metal index.

L&T Technology Services(+7.2%) jumped up with strong earnings projections. Parent company Larsen & Toubro(+0.3%) closed flat, expecting a rally in the stock soon.

Zomato(+8.8%) shares rallied up and hit fresh all-time highs.

The realty index rallied with power from Prestige(+10.3%), Sobha(+6.5%) and DLF(+1.4%). Purva(+4.7%), Kolte Patil(+5.6%) and Macrotech Developers(+4.8%) also gained in the day. Most were at their 52-week highs.

Mazagon Dock(+5.5%) shot up after PM Modi said the company will partner with Russia’s Zvezda for the building of commercial ships.

RailTel(+3.4%) and IRB India(+4.7%) moved up after winning projects. You can read more about it in the pre-market report here.

JK Tyre(+7.1%) has taken support in a channel and moved up today. Can watch in the coming days for more moves. Other tyre stocks including MRF(+1.3%) and CEAT(+1.5%) also moved up while Balkris Ind(+0.9%) and Apollo Tyres(+0.6%) consolidated.

Markets Ahead

Reliance is back and it is back with a bang! After consolidating for many months in a row, the stock is back to fresh highs. The uncertainties surrounding the stock moved away and it was only a matter of time. Interestingly, Reliance contributed 80% to Nifty’s gain of 89 points today.

India’s August Markit Services PMI came out at 56.7 vs 45.4 previous, indicating an expansion. This is good for the services industry.

Nifty 50 had its best week since the budget week back in February by gaining 3.5%. Yes, this week the index shot up 3.5%!  Shree Cements, Bharti Airtel and Titan gained over 10% in the last 5 days.

Nifty Realty(+10%), Nifty Midcap(+5%)  and Smallcap(+4%) also gained heavily this week.

The Reliance breakout along with Bank Nifty taking support in its channel pattern indicate markets may continue to rally in the coming weeks. Just like Reliance, if Bank Nifty also moves to its 52-week high then Nifty can easily reach its next target of 17,490.

But still, it won’t be wrong to say that the market is a bit stretched right now. A cooldown or consolidation may be seen to shake off the fake bulls in the market.

How did the weekly expiry go for you? Have your portfolios closed in the green at the end of the week? Let us know about it in the comments section of the marketfeed app!