Today’s Market Summarised

European markets closed 5-7% up, SGX Nifty touched 12,800 and amazing sentiments around the Covid-19 vaccine progress. Nifty was expected to open with a huge gap-up, but that did not happen. In fact, after a lower than expected gap, Nifty even formed consecutive red candles in the first minutes of the day.

Nifty opened the day at 12,557, but quickly fell to take resistance near yesterday’s high. But after taking this support, Nifty went up strongly making fresh all-time highs along the way. The index took resistance near 12,620 and fell sharply around 1:45 pm to 12,520. From this level, Nifty went back up to make even higher highs in the day. Nifty touched an all-time high of 12,642 today, and closed at 12,631.10, up 170 points or 1.36%

Bank Nifty opened the day above 28,000 today. After opening at 28,051, Bank Nifty went up to touch a day-high of 28,800. The index fell after 1.50 pm, pulling Nifty down. The index recovered a bit and consolidated towards the end of the day to close at 28,606, up 1071 points or 3.89%.

Nifty Financial Services came in as the top gainer today, beating Nifty Bank which came in a close second. Nifty Pharma and Nifty IT crashed today, and was among the top losers.

Most Asian markets closed in green today. Major European markets are trading mixed today.

News Picks

A general trend was followed in the market today. IT and Pharma stocks fell sharply after Covid-19 vaccine announcement pushed up financial stocks in India. They have been in a long-term uptrend. Meanwhile, Banks and financial institutions who had been underperforming performed well today.

Indigo gained 9.15% to Rs 1,627 after the news, along with many others. Indigo had last day placed an order for multiple jet engines, click here to read about it.

PVR and Inox share prices also jumped, after the vaccine announcement.

Pfizer share prices closed at Rs 5,051, up 2.59% today. The company’s US parent had announced a vaccine coming soon, but stock prices fell over the day after opening at the 20% Upper Circuit.

Shares of Cipla crashed to Rs 722.2, down 5.37% today along with other major pharma companies. The company had last day asked its employees to be prepared for a cyber attack.

IndusInd Bank touched a day high of Rs 870, but fell to Rs 832, up 7.29% today. The stock has been a constant uptrend.

Bajaj Finance and Bajaj Finserv were among the top gainers and lead the rally for NBFCs along with HDFC.

Markets Ahead

While European markets rallied, one thing to have kept in mind was that they were nowhere near all-time highs. Nifty was already at its all-time high and hence did not see a rally of 5-7%. Financial services and Banks continued on their uptrend, with huge rallies. IT and Pharma stocks crashed and crashed hard. This was because, after their huge post-covid rallies, a correction came in these sectors as information of Covid-19 vaccine came in from Pfizer. Good companies from underperforming sectors did well today, including major NBFCs, PVR and LT. We can expect a further rally in the coming days, but only for these fundamentally strong underperforming companies.

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