Today’s Market Summarised

Nifty continues on and on. With banks staying very very bullish and ITC jumping, Nifty touched new all-time highs today. After opening at a small gap-down at 14,768, Nifty took support at 14,700 and started moving up. It moved up then consolidated, moved again then consolidated again. And slowly Nifty crossed 14,900 and closed at 14,895, up 105 points or 0.71% for the day.

Bank Nifty beating all expectations and moving up even above huge huge resistance of 35,000. SBI led the rally along with Kotak Bank. After opening with a gap-down at 34,452, the index fell and took support at 34,240(check charts, it is a good level). It consolidated near to 35,000 for more than 90 minutes, then started moving up with the huge boost from SBI near the end. Bank Nifty closed at 35,344, up 586 points or 1.69% for the day.

Nifty PSU Bank ended with big gains(+5.9%) lead by SBI and Canara Bank. FMCG also did well(up 2.4%) on the back of ITC rally.

Asian markets closed mixed, with most indices even closing in the red. IT was the index which closed in the red, with just small losses.

News Picks

Shares of ITC gained after 12pm with huge strength on the back of big volumes and closed as the top gainer in Nifty 50.

Shares of SBI gained towards the end of the day as the bank published better than expected results. Net interest income rose 4% from last year Q3 to Rs 28,820 crore. Net profits fell 7% YoY to Rs 5,196 crore on higher provisions for bad loans. The stock alone pushed up Bank Nifty by 250 points today.

Shares of ApolloTyres closed 7.2% up to as the company posted amazing results yesterday. You can read this article to know why tyre stocks have been rallying off-late. Balkrishna Industries also gained 6.26%.

Jubilant Food bounced back from yesterday, closing more than 6.7% up. Along with ITC it took the FMCG index up. Also, Procter & Gamble India share price hit a new 52-week high after the company reported a Q2 profit jump of 84%.

PSU banks rallied in the day, along with positivity from SBI. Indian Bank gained more than 15%, and Bank of Baroda gained more than 6%. These stocks have no weightage in Bank Nifty.

Godrej Properties fell by more than 3.5% as the company reported net profit down 69% YoY to Rs 14 crore for Q3. Total income fell 28% YoY to Rs 306 crore.

Tata Power reported net profit up 22% YoY to Rs 318 crore for Q3. Revenue is up 7.4% to Rs 7,598 crore. Shares closed up 6.4% in expectation of good results.

Markets Ahead

What a week of rallies for Nifty and Bank Nifty. By weekly, I mean from last weekly expiry to this expiry. After touching 13,600 last Friday, Nifty rallied more than 1300 points to close near its all-time high today! Bank Nifty rally for this expiry has been even more staggering rallying almost 6,000 points since last Thursday’s low.

Really did expect Nifty and Bank Nifty to take some rest today. And did not feel Bank Nifty would cross 35k today. Did not expect Nifty to cross 15k and this worked right for the week. Analysis need not always be right, right? 

The monetary policy announcement for tomorrow will be an important event, although no significant changes will be announced. With SBI looking largely bullish, and near its all-time highs can expect some more rally if that level is broken.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.