Today’s Market Summarised

NIFTY opened the day with a gap down at 14,070 and tried to move up. But this was not sustained and NIFTY took support at 14,050 to move back. Just after 10:30 am, and it moved up sharply through the day. The index continued its rally beyond the day high, and only barely corrected before European markets opened. After global markets opened flat, Nifty rallied fueled by IT and Banks to even cross 14,200. Nifty closed the day at 14,199, down 66.60 points or 0.47%.

Bank Nifty opened the day just above 31,000 and shot up. The index went up relentlessly to create new post-covid highs. The index moved almost 500 points since after 1:30 pm and consolidated near the day high. Bank Nifty closed the day at 31,722, up 509 points or 1.63%.

IT stocks and Bank indices went up sharply. Metals corrected sharply after yesterday’s rally.

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

News Picks

Bank shares went up sharply today. Axis Bank, IndusInd Bank and ICICI Bank went up sharply today. Private Bank index went up sharply.

IT stocks also sharply went up today. The industry is seeing continued bullishness from yesterday and pushed up Nifty today. Wipro, TCS and HCLTech featured in the top-gainers today. There were no losers in the IT index today.

HDFC led the rally in financial services along with Axis Bank, IndusInd Bank and HDFC Life. The derivatives for the index is set to start trading from January 11.

Shares of ONGC fell more than 2% even with a lot of positivity surrounding the Oil&Gas sector. Following Delhi Govts path, the central govt is said to be planning to run all the plants on gas.

Also, PM Narendra Modi inaugurated 450km natural gas pipeline between Mangalore and Kochi. GAIL went up more than 1%, while Petronet LNG went up more than 1.5%.

Shares of MRPL(Mangalore Refinery & Petrochemicals Ltd) gained more than 8.5% after the company increased its stake in ONGC Mangalore Petrochemicals Ltd to 99.99% last day.

Steel stocks corrected today after yesterday’s unbelievable rally. JSWSteel, TataSteel, Hindalco and SAIL fell sharply today.

Info Edge(Naukri) gained more than 13% today to close at fresh all-time highs. You can check out our article on the company to get a brief idea of why.

Shares of Reliance closed in the top-losers list with farmers protests against the company not cooling down.

Markets Ahead

Financial Services index companies are once again back at it again. Just ahead of the launch of the derivatives trading on the index, it is flying with no other apparent reason than institutional money flowing in. Once the derivatives are active, a lot of buying and selling power will be needed to move the index.

IT Stocks are continuing their rallies ahead of the Q3 results, and we may probably see heavy selling pressure once they are announced.

Nifty has again touched fresh all-time highs. Where to next? Will a sharp correction ever come or are you waiting for it without reason? Or will Nifty consolidate again and midcaps rally? I feel it is the last option.

The budget presentation is on February 1st, and is being looked at with high expectations.

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