Today’s Market Summarised

Once again a bullish day in Nifty. 

After opening with a gap-up at 15,064, Nifty formed a few red candles to start the day. Support was taken at 15,000 and the index moved back up with a lot of power. Reliance and Banks equally pushed the index up along with IT stocks. After consolidating near 15,100, the index kept moving up. Nifty closed the day at 15,245, up 326 points or 2.19%.

Bank Nifty was generally bullish in the day. After opening with a gap-up at 35,762, it went slightly down like Nifty. After consolidating near 36,000, the index went up to its day high and consolidated for the last 2 hours. Bank Nifty closed the day at 36,368, up 948 points or 2.68%.

Nifty Metal and Nifty PSU Bank performed the best(both over 3% up), after underperforming for the last 2 days. Nifty Financial Services was up 2.78%. Nifty IT, Nifty Pharma and Nifty Realty closed more than 1% up. Only Nifty Auto closed in the red, down 0.66%.

All Asian and European markets are trading in the green today.

News Picks

Metal stocks rallied after state-owned iron ore miner, NMDC said it has registered growth during the month of February 2021 both in terms of production and sales performance as compared to the year-ago period. Iron ore production for Feb 2021 grew 19% YoY to 3.86 million tonnes (MT). Sales increased 12% YoY for the same period.

Tata Steel, Hindalco and JSWSteel featured in Nifty 50’s top gainers.

Financial stocks, including banks were trending today. We could see Bajaj Finance and Finserv on the top gainers along with HDFC. SBI Life was also up.

Housing finance stocks including LICHsgFin, Indiabulls Hsg Finance and HDFC were up after Kotak Bank’s Ambuj Chandna said that he does not see margin dropping even with such low interest rates, and has seen growth in home loans in the last 2 quarters. This is probably why financial stocks outperformed, as well.

Tata Power has signed a deal with Tata Steel to develop 15 MW solar project in Jamshedpur. Both shares were up around 5%, with Tata Steel being Nifty 50’s top gainer. On an unrelated note, Tata Chemicals also was up 5% today. 

Services sector stocks including Indian Hotels(up 3%) jumped as PMI data showed growth. Services PMI jumped to 55.3, with the help of recovering domestic demand.

MTAR IPO has opened today. You can read more about the company here.

Reliance is back in power, featuring on the top gainer’s list today. Shares closed above Rs 2,200 for the first time since last October.

Markets Ahead

With all the power from every sector, Nifty broke 15,000 with much more ease than I thought it would. It has also been taken as a good support today before Nifty moved up another 250 points.

IT and Pharma stocks continued their slow movement upwards. Infosys was up nearly 3% and is ever so closer to its 52-week high. I think this will be taken out soon.

What is interesting is how much power Nifty has? Remember Friday’s fall of 568 points? Well, that is all gone right now. Nifty has even gained back more than that. Such is the power of the bull market we are in right now. It is like the index does not want to consolidate at all, moving up sharply.

On a side note, the Nifty Midcap index has hit a fresh all-time high today lead by none other than Adani Enterprises(up 5%). I feel like Adani Ent is like that big guy in the kids game. With an ever-growing market cap, it could soon move into the big boy’s game, Nifty 50.

What we see on Wednesday’s are usually high volatile days. But India VIX is down another 6% to 22. Looking forward to tomorrow’s weekly expiry.

A new round of stimulus and benefits is set to be announced in the UK by Rishi Sunak in his Covid-budget plan. This is what is taking European markets up. Dow Futures are also up, let us see if our markets continue the rally.

Catch you all on The Stock Market Show tonight!