Today’s Market Summarised

Nifty opened the day with a gap-up at 14,834 and went up with almost every index moving up. It even crossed 14,900 but soon came down with heavy sell-off in banks. After taking perfect support at 14,760, Nifty started moving back up with the power of IT, Auto, FMCG and Pharma stocks.

Up until the last hour, I thought it was a day of consolidation in Nifty. A last-minute burst in every index including Bank Nifty pushed Nifty up 150 points in 30 minutes. Nifty closed the day at 14,919, up 157 points or 1.07%

Bank Nifty was generally bearish through the day but closed flat. After opening with a gap-up at 35,484, the index of banks went up 300 points in the first 20 minutes. It then kept on falling to take support perfectly near 35,000. Bank Nifty moved up in the last 2 hours to close at 35,419, up 123 points or 0.35%.

All major sectoral indices(except PSU Bank index) closed in the green today. Nifty Auto was up 3.19%, while Nifty IT was up 3.04%.

Asian markets closed mixed in the day. European markets turned green and are currently trading flat after opening below.

News Picks

Tata Motors continued its rebound from 300 levels, gaining 5.32% in the day. It was boosted by the February sales data of the company which came in at a 9-year high. The company put out a positive statement in reply to the Delhi Govt’s removal of subsidies on Nexon EV saying that range depends on riding style and many other factors.

With the company once again posting good tractor and passenger vehicles sales numbers, M&M went up nearly 5% in the day. Global ratings agencies including Morgan Stanley and CLSA maintained bullish view on the stock.

BPCL shares shot up 3% after the company exited Numaligarh refinery in Assam by selling it to Oil India and Engineers India for Rs 9,876 crore. Investors are expecting a high dividend payout after this sale, along with a push for privatisation.

JustDial shares are up 20% again today. The stock has gained more than 50% in the last 5 days. 

Adani Ports is set to develop the West Container Terminal at Colombo Port and is said to have received approval from Sri Lankan Govt. The company also handled higher cargo volume of 21.12 Million Metric Tonnes in February, up 8% YoY. Shares were up 4% today.

IT and Pharma stocks were generally up in the day. They were trading bearish for the past week and a reversal was expected. Shares of Infosys, Tech Mahindra and Wipro showed up in the top-gainers list of Nifty. Dollar prices have also reached back to above 73 levels vs the rupee, which is good for IT and Pharma. We even talked yesterday about this. 

Cochin Shipyard and Mazagon Dock shares once again closed 4-6% up in the day. PM Modi while speaking at the Maritime India Summit laid out big for India’s shipbuilders and ports. Many new orders are expected for both companies soon. Shipping Corporation of India gained 20%.

Trent once again closed 9% up after being added to F&O stocks list on NSE. LTI gained 6.23%, LTTS closed 6.89% up and were also added on the list.

Markets Ahead

Markets continued on its path of recovery, and is set to meet 15,000 once again. SGX Nifty is trading near that level currently. This will surely be an important level and may take some time to be broken. Looking back down 14,760 and 14,630 are good zones to watch out for.

Expecting Bank Nifty to keep moving with volatility like always.

IT stocks have begun their move back up. TCS and Infosys together contributed nearly 60 points to Nifty today. Major tech stocks are 5-10% lower than their 52-week highs and we may see these levels being reached soon if general market helps.

The National Real Estate Development Council(NAREDCO) has said that the worst is over for the industry. Meanwhile, lenders warned the council against increasing prices as it may hurt demand. 

Real estate is indeed an important sector for the economy as a lot of financial institutions lend to both common people and giant builders. So if this industry is doing well, then it would be a huge relief to Banks and other financial institutions.

The 4G spectrum auction is closing today. Airtel has acquired Rs 18,000 crore worth of airwaves to benefit 9 crore more users. All spectrum bought by the company can also be used for 5G. Bharti Airtel shares closed more than 1% up in the day. Looks at a good level, after last day’s heavy sell-off by a foreign investor brought prices down.

Catch you all on The Stock Market Show tonight!