Today’s Market Summarised

As the weekly index expiry day always is, today was very volatile. Nifty opened the day at 13,713 and shot up to more all-time highs. The index went up boosted by HDFC, HDFC Bank and Reliance giving good moves. After European markets opened in the green, NIFTY shot up to create an all-time high near 13,774. The index cooled down to close at 13,734, up 58 points or 0.42%.

Bank Nifty opened the day with a slight gap-up at 30,790 and started moving up. The index was pulled back by ICICI Bank, while HDFC Bank tried to push it up. When ICICI Bank reversed from its bearish trend, Nifty Bank went up making strong green candles and even gaps in the 5-minute chart. After testing 30,950, Bank Nifty closed at 30,847, up 148 points or 0.48%.

Financial Services performed well today, along with the Realty index. Nifty Media and PSU Banks were the worst performers of the day.

European markets and Asian markets are trading mixed for the day. Let us watch how US markets close today.

News Picks

Burger King India went up 10% in the start of the day, and was locked in the Upper Circuit. But as all such stocks do, it hit its 10% lower circuit at the end of the day.

HDFC shares continued to move up, going up 2.88%, after the expected rally discussed last day. Non-Banking Finance Companies(NBFCs) have been going up following hope of government support.

Shares of Divislab hit fresh all-time highs, zooming up 2.87%, just weeks after being included in NIFTY 50.

Shares of Steel Authority of India(SAIL) went down more than 4% today. The stock came under heavy profit-booking after zooming up more than 50% in the last 1 month.

Shares of Page Industries, who is the licensee of Jockey International in India, Sri Lanka, Nepal, Bangladesh and the United Arab Emirates, went up more than 5% today. Similarly, other textile stocks, including Kitex went up today. Increased demand from US, and positive outlook from analysts are pushing up textile stocks. SRF also went up 3.5%.

Markets Ahead

Nifty moved but actually just consolidated if you look at the chart. This was very much in line with how we expected, with NIFTY closing between 13,600 and 13,800, exactly like we discussed in yesterday’s post-market report. Bank Nifty also closed under 31,000, just as indicated by the open interest analysis. Bank Nifty creating gaps and going up, still could not cross the 31,000 mark.

Financial services have been rallying. Is this because of the government’s plans to increase liquidity for NBFCs? I even think that the upcoming derivative in Nifty Financial Services has been pushing a lot of FII money into these stocks.

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