Today’s Market Summarised

A day that started off as very boring, but closed as one of the most interesting monthly expiries in the market!

Nifty opened the day at 15,335 and tried to move down. From the morning low, the index moved up very slowly. For more than 2 hours at the middle, the index consolidated in a 35 point range. In the last 2 hours, Nifty fell to the day low then shot up to new day-highs. Nifty closed the day at 15,337, up 36 points or 0.24%.

Bank Nifty opened at 34,732 and tried to move down. The zone near 34,500 acted as strong support multiple times and by 10.35 am, Kotak Bank started moving up like crazy. From here there was no looking back. Resistance was taken near the 35,000 level first. But in the last 1 hour, the index jumped nearly 500 points especially with power from SBI. 

Bank Nifty closed at 35,095, up 410 points or 1.18%.

Nifty PSU Bank(+2.85%) was the best performing sector of the day. Bank Nifty(+1.18%), Nifty IT(+1.14%) and Nifty Realty(-1.19%) moved the most in the day. All other sectors moved less than 1%.

Asian markets closed mixed in the day. European markets are mostly trading flat.

News Picks

Markets gained a lot of positivity after the RBI released its annual report for the nine-month financial year of 2020. RBI said that Indian economy not as hard hit as first wave but uncertainties remain. RBI says, fiscal policy stance brightens prospects of eco recovery. RBI said they will ensure that system liquidity remains comfortable in FY22.

Kotak Mahindra Bank plans to consider fundraising via issuing bonds/debt securities on May 29. The stock closed nearly 2% up.

SBI touched a new 52-week high and closed 2.82% up in the day. The rally in SBI near the market close took Bank Nifty up.

Reliance closed 1% up in the day with Google CEO Pichai once again says they are working closely with Jio to launch affordable smartphones.

BPCL interestingly opened with a small gap-up and closed 0.5% in the red. Many market participants expected the stock to shoot up after declaring good results and a great dividend. But the news that BPCL divestment may take time pulled the stock down.

Privatization of BPCL is likely to be delayed by another six months over open offers to Petronet & IGL shareholders, which may raise the acquisition cost by Rs 20,000 crore

Kerala-based Kalyan Jewellers reported Q4 consolidated net profit at Rs 74.2 crores vs Rs 48.1 crores last year(+54%) vs Rs 132 crores last quarter(-43%). Revenue at Rs 3057 crores vs Rs 2141 crores last year vs Rs 2936 crores last quarter. The stock closed nearly 3.5% down in the day.

Cement stocks gained sharply, especially near market close. Shree Cements(+3.65%), and UltraCemCo(+1.40%) closed among top-gainers in the day.

Wockhardt Pharma reported Q4 consolidated net loss at Rs 92.8 crores vs a profit of Rs 48.3 crores last year. The stock crashed and closed 14% down.

Alkyl Amines gained 8% after reporting Q4 consolidated net profit at Rs 92.6 crores vs Rs 49.2 crores last year(+88%) vs Rs 84.44 crores last quarter(+9%).

India Govt extends deadlines for merchant banker bids for RCF and NFL Offer For Sales by 1 week. Both stocks closed 2-3% in the red.

RCF closed 3.8% down after reporting Q4 consolidated net profit at Rs 154 crores, down -23% YoY and but up 56% compared to last quarter.

PayTM is looking to target a Rs 21,818 crores IPO, largest ever for India.

Piramal Enterprises rose 6% following National Company Law Appellate Tribunal’s stay on their order in the DHFL case.

Sun Pharma closed flat in the day and reported Q4 consolidated net profit after market close. Net profits are at Rs 894 crore, up 110% YoY , but down 52% compared to last quarter.

V-Guard Industries reported doubling of its consolidated net profit to Rs 68.38 crore for the fourth quarter. Stock is up by 5.5%

Manappuram Finance fell by 3.8% after reporting their quarterly profits yesterday.

Markets Ahead

What an interesting day in the market. Nifty was looking in a consolidation mood even as Bank Nifty jumped nearly 700 points up from the day-low. Even as banks went up, HDFC and other stocks fell to keep Nifty level. 

This is what happens in the expiry days. Consolidation means if some stock is performing well, others will pull down the index.

With this close, Nifty is closer than ever to its all-time high again. If you look at the last 30 minutes in large-cap stocks, a lot of buying and selling was happening. Huge volumes were being traded as positions were closed on the last Thursday of the month.

15,300 resistance was broken as the market closed near the day-high. The strong close indicates that bullishness could continue tomorrow. A fresh start in June’s monthly series tomorrow, let us see how the market goes.

With two more trading day left in May, what do you think? Will Nifty conquer its all-time highs tomorrow? Or will it face resistance in this zone? Let me know in the comments of marketfeed app.

And yes, the GDP Data for Q4 is coming out on Monday the 31st of May! That is the next significant event in the market with most reports predicting a 1-2% GDP growth rate compared as the economy re-opened.

Catch you all on The Stock Market Show tonight!