Today’s Market Summarised

Tables turn in the market. IT and Pharma indices going to red, while financial stocks outperformed along with Autos and Metals.

Nifty opened the day at 14,368 with a slight gap-up. The index tried to go up multiple times but found resistance at 14,400-14,450 as IT stocks remained weak. But after 2 pm, every index started to move up and pushed Nifty up considerable. Nifty closed the day at 14,504, up 194 points or 1.36%.

Bank Nifty was more bullish in the day. After opening at 30,950, the index tried to fall in the first minute itself. But yesterday’s low was not broken and with this confidence, Banks started moving up. The index consolidated in a 350-point range for more than 4 hours before breaking out near noon.

Even though 32,000 was not broken, Bank Nifty managed to close above yesterday’s high at 31,771, up 979 points or 3.18%.

Nifty PSU Bank which fell nearly 10% yesterday was today’s top-gainer, going up nearly 4.5%. Nifty IT saw heavy profit booking, falling more than 3% in the day.

Asian markets closed in the green today. European markets are consolidating.

News Picks

Shares of M&M closed nearly 8% higher in the day. The company has received more than 50,000 bookings for Mahindra Thar in the 6 months of launch and is ramping up production to reduce waiting time. Also planning to introduce XUV400, in competition to Hyundai’s Creta.

Shares of Bajaj Finance and Bajaj Finserv went up gradually over the day. The Bajaj Twins were top-gaining stocks of the day from the start. The NBFC stocks pushed up Nifty Finserv to go up 3.4% at close.

While it was the day of reversals of Banks and NBFCs, yesterday’s gainer Dr Reddy’s closed down 4.40% as the top-loser. The stock was bearish from the start after a gap-up opening and pushed the Pharma index down. 

TCS reported their Q4 revenue numbers yesterday, with net profits going up 14% YoY and a Rs 15/share dividend. Markets being the market, TCS fell more than 4% in the day as profits were booked.

The government will soon allow all foreign-made vaccines in India. Vaccines like Pfizer, Moderna, J&J can get completely imported vials or look at manufacturing in India. Pfizer stock is up by 6%. 

After the Government directed SpiceJet to gear up for more vaccine supplies. Stock is up by 2.5%.

With the cabinet soon planning to take up IDBI divestment, stock is up by more than 7.5%.

Adani Green said that 925 MW added to capacity despite pandemic and total operational capacity reached 3,470 MW. The stock closed nearly 1.8% up.

Larsen & Toubro has begun the construction of a 300MW solar plant in Saudi Arabia. The company had also won multiple thousands of crores worth of orders last day. The stock closed up by 2.3%.

Adani Ports closed 1.5% down in the day after being removed from Dow Jones Sustainability Index due to deals with Myanmar Military. The company said its investment decisions in Myanmar were under very different circumstances and all transactions & payments to Myanmar Economic Corporations have been terminated.

Ramco Systems won an order from Exsyn Aviation Solutions for aircraft data migration. Stock is up by 2% in a day where most IT stocks closed in the red.

Private weather forecasting firm Skymet Weather predicted that the 2021 monsoon will be normal. This is good for the country as a whole, since we are an agriculture-based economy. Also reassures growth for stocks linked to the agriculture sector.

Tata Motors has said that Jaguar Land Rover expects to report significant positive free cash flow in Q4. Tata Motors went up more than 5% in the day.

Ashoka Buildcon emerged as the lowest bidder for Gauge Conversion of Bechraji–Ranuj section, a project worth Rs 334 crores. Stock is up by more than 4%.

Markets Ahead

Foreign vaccines will soon be allowed in India. With this, the vaccine shortage in the country could be solved and even vaccination for everyone above 18 could be possible.

Also, the Bombay Municipal Corporation commissioner said that the Covid test positivity rate is down from 27% to 16%. This is really good and considering that he also said that lockdown restrictions will not be as stringent as they were during the first wave, markets took this with a lot of positivity.

Also, indirect tax collection rose 12.3% to Rs 10.7 lakh crore in FY21, which is really good for the country.

As vaccine concerns and lockdown concerns subsided, especially after many industry experts pushing against another lockdown, markets have calmed down.

Bank Nifty closing above yesterday’s high gives some confidence. Considering how Nifty never fails to surprise us, this might actually go either side after tomorrow’s market holiday. 

Going up, we know that 14,620, 14,750 are good resistance. Going down, yesterday’s low will act as a good support.

AstraZeneca and Pfizer have started moving upward, and can be looked at in the coming days. Wonder where Dr Reddy will go now though!

Enjoy tomorrow’s market holiday, and spend time with your family. Hoping the first day of Ramadan fasting is going good. And Keralites do enjoy Vishu celebrations tomorrow while Karnataka celebrates Ugadi today.

Catch you all on The Stock Market Show tonight!