Today’s Market Summarised

A day dominated by bulls in the Indian market. Banks making a comeback with Bank Nifty up more than 4% over the day.

Nifty opened the day at 14,762 and tried to move down. Even as other sectors fell, Bank Nifty powered ahead to take Nifty back up. After some consolidation between 14,800-14,830, the index continued its upward journey by noon. After a highly bullish day, Nifty closed at 14,923, up 245 points or 1.67%.

Bank Nifty opened at 32,450 and was bullish from the start. It took support at 32,300 in the first candle and started shooting up. There was no consolidation for the index today, as you can clearly see below. 33,000 was broken with ease and so was 33,300. In fact, Bank Nifty even touched 33,500 and closed the day at 33,459, up 1,289 points or 4.01%!

Bank Nifty(up 4%), Nifty PSU Bank(up 3.8%) and Nifty Finserv(up 3.20%) gained the most in the day. Nifty Metal(up 2.29%), Nifty Auto(up 1.95%) and Nifty Realty(up 1.4%) were the only other sectors to move more than 1%.

Major Asian markets mixed, mostly in the red. All European markets are trading in the red at the time of market close.

News Picks

India reported worse than expected numbers for April’s Wholesale Price Index Inflation at 10.49% against 7.39% last April. This is an 11-year high. Despite this, markets rallied with even metal stocks making a comeback.

Financial stocks led the day in the market by being 6 out of the top 10 gainers in Nifty 50. IndusInd Bank(+7.36%), SBI(up 6.3%) moved the most in the day. SBI is expected to post its results this Friday.

Dr Reddy has tied up with Shilpa MediCare for the production of the Sputnik-V vaccine for 3 years. ShilpaMed has already been in a bullish mood for the last two months and closed 11% up with the new collaboration.

Dr Reddy also announced a tie-up with Apollo Hospitals for Sputnik-V rollout and closed 1% up as other Pharma stocks moved down.

TVS Motors said during the day that TVS Ntorq 125 has crossed the 1 lakh sales milestone in international markets. The stock closed nearly 3% up.

Profit booking brought down L&T shares after the company reported their Q4 results on Friday. The stock is down 2%.

After news of Adani Green taking over SoftBank-backed SB Energy for $650 million(Rs 4,700 crores), the stock opened at the 5% Upper Circuit of Rs 1,142 and remained there.

Cipla opened the day as Nifty 50’s top loser, down by nearly 2% after reporting Q4 numbers. The stock closed down by 2.5% as Nifty’s worst-performing share.

Meanwhile, Aarti Drugs reported a lower consolidated profit at Rs 51.7 crore in Q4FY21 against Rs 58.9 crore last year. The bad results had a very huge impact and the stock fell 8%.

After good Q4 results were published by BalKrishna Industries on Saturday, the stock rallied and closed 10% up.

Federal Bank reported a 59% YoY increase in net profits to Rs 470 crores for Q4. It was higher by 18% compared to last quarter. The stock was highly volatile and closed more than 2% up.

Colgate-Palmolive (India) closed more than 2% up after reporting a 52% YoY and  27% QoQ increase in net profits to Rs 315 crores.

Bharti Airtel has reported a Q4 consolidated net profit of Rs.759 crores against a Rs 5,237 crores loss last year. But it is still down nearly 11% compared to last quarter. Revenue is up by 11% YoY to Rs 25,747  crores. The stock closed nearly 2% down.

Life Insurance companies like ICICIPRULI, HDFCLIFE and SBILIFE closed in the red, between 1.5-2% down in the day.

IT and Pharma stocks remained bearish as rupee continued to strengthen. It is now at 73.30 against the dollar.

Markets Ahead

After last week’s close under 14,700, Nifty has shaken off the bears with Bank Nifty’s help. In fact, just HDFC Bank and ICICI Bank pushed Nifty up by nearly 100 points in the day,

Private Banks and PSU Banks were in a race against each other today. Even though IndusInd Bank closed as Nifty’s top gainer, SBI hit a fresh 2-month high today. 

33,300 was sustained by Bank Nifty for the first time in May. This is indeed a good indication. Like we discussed on Friday, Bank Nifty was the one moving Nifty around today. Most banking stocks jumped from near their support zones.

Inflation fears will continue to cause Nifty some fear near the 15,000 ranges. But if all goes well, we might see a gap-up opening near the 15k mark tomorrow. We will have to see if profits are booked or if the bulls will continue.

SBI’s results on Friday will be the major event in the market for this week. For now, all signs indicate bullishness but with the resistance at 15,000 and 15,100 continuing for Nifty. With the strong close from HDFC, HDFC Bank and Reliance today, we might continue to see some good movement from these stocks tomorrow.

14,700 and 14,800 can be watched as support levels till this Thursday.

Going with the flow this week, no matter which direction markets go to. And yes, metals have started moving back up for all still bullish on the sector. This is still a good dip if you believe the sector will continue to go up. And yes, I am still interested in the sector!

Catch you all on The Stock Market Show tonight!