Today’s Market Summarised

Short covering in the market continued with HDFC Bank and ICICI Bank breaking out to all-time highs.

NIFTY opened the day at 18,286 with a 130 points gap-up. After heavy consolidation for the first 2 hours, there was high volatility till 1:30 PM. By this time, the index tested the day-low and shot up to reach 18,350 near the closing time. NIFTY closed the day at 18,338, up 176 points or 0.97%.

BANK NIFTY opened the day at 38,744 with a small gap-up. The index consolidated in a tight range, unable to break 38,900. But in the last 2 hours, Bank Nifty rallied more than 500 points. After the stellar rally, BANK NIFTY closed the day at 39,340, up 705 points or 1.83%.

NIFTY BANK(+1.8%) and NIFTY PSU BANK(+1.7%) closed with big gains. NIFTY METAL(+1.7%), FIN NIFTY(+1.5%), NIFTY IT(+1.3%) and NIFTY REALTY(+1.2%) also moved up. Only NIFTY AUTO(-0.59%) closed slightly in the red.

Asian markets closed mostly in the green today. European markets are also trading in the green currently.

News Picks

Adani Ports(+7%) continued yesterday’s breakout and closed as the top-gainer in NIFTY 50. Other Adani Group stocks including Adani Ent(+4.8%) and Adani Power(+7%) also closed with gains.

Wipro(+5.3%) and Infosys(+0.38%) opened with big gap-ups after their results announcements yesterday. Infosys fell back down while Wipro closed among the top-gainers. Mindtree(+7.6%) closed with gains after announcing good results.

HDFC Bank hit a fresh all-time high and closed 2.9% up, the rally ahead of the result announcement on Monday. ICICI Bank(+2.4%), and IndusInd Bank(+2.1%) also closed as Nifty top gainers. 

Coal India is continuing the correction, down by 3.2%. However, PowerGrid(+2.6%) closed in the top-gainers list.

The auto sector closed in the red after two days of the rally with Tata Motors(-1.8%) and Eicher Motors(-1.8%) featuring in the top losers list. Ashok Leyland(-1.1%) and MRF(-1%) also moved down. 

TVS Motor(+1.1%) broke the trend and closed in the green after announcing the rollout of 100,000 units of the BMW 310CC series motorcycle from the Hosur facility, Tamil Nadu.

ITC(+2.9%) gave a breakout once again and closed with strength. We can expect more movement in the coming days. Grasim also hit fresh 52-week highs.

IRCTC(+10.8%) rallied to all-time highs moving 100% since September 1st. 

Reliance related media and network firms spiked in the day led by Network18(+14.2%) shares. TV18(+4.1%), Hathway(+2.4%) and DEN(+2.1%) shares closed in the green.

Astral closed 0.8% up after falling 3.5% from day high as PVC resin prices have been increased to Rs 1,24,236/mt, up 20% MoM

IndusInd Bank(+2.1%) says SV Zaregaonkar resigns as CFO, Gobind Jain is appointed new CFO effective September 30.

BEML(+8.9%) gets no objection to the scheme for its demerger from BEML Land Assets and moved up.

Cements stocks moved up on reports saying that South India cement prices are likely to be hiked by Rs 25/bag over the weekend. India Cements(+7.8%), Ambuja Cements(+1.1%), JK Cements(+2.7%),  and Orient Cements(+2.3%) gained well.

DoT approves 7 global & 8 domestic companies for PLI scheme for telecom & networking products. Tejas(+5%-UC), ITI(+2.8%) & HFCL Group(+5%-UC) closed in the green.

Society of Indian Automobile Manufactures data for September Sales is out. Passenger Vehicles sales stand at 1.6 lakh units vs 2.72 lakh units (YoY). Two-wheeler sales at 15.28 lakh units vs 18.49 lakh units (YoY). Shortage of semiconductor chips is causing a major concern for the industry

Century Textiles(+2.4%) moved up after reporting Q2 Consolidated Net Profit at Rs 44.7 crores vs Loss of Rs 14.1 crores last year. 

Markets Ahead

NIFTY posted the biggest weekly gains in more than a month. BANK NIFTY moved up more than 4% this week, the biggest weekly gain in 5 months. Midcap Index is up for the 8th straight week, the longest weekly gaining streak since 2010.

Tata Power, Union Bank, IEX, BHEL and Indian Hotels are the top midcap gainers this week. Tata companies have been incredibly bullish as we saw yesterday.

The wholesale price inflation data in September came out at 10.66% down from 11.39% in August. 

Bank Nifty gave a breakout after many days of consolidation with power in HDFC Bank and ICICI Bank. The power took NIFTY up as well. 

IT shares moved with volatility after the results announcements yesterday. Infosys and Wipro shares were showing a gap-up in the market.

Tomorrow is a holiday on account of Dussehra. So enjoy the 3-day market weekend!

So Bank NIFTY at 40,000 soon? Looks more possible than ever right? What do you think? Let us know in the comments down below!

Meet you all on The Stock Market Show at 7 PM on YouTube!