Today’s Market Summarised 

Nifty opened the day at 11,489 with a gap-up and traded below that level till after noon. Around 11am, after taking support at 11,440 level (yesterday’s close), Nifty started its upward journey fueled mostly by Banks. The index broke the 11,500 level with a strong green candle at 2pm and went on to close making a high at 11,521.80, up 81.75 points or 0.71%.

5 min chart of Nifty

Bank Nifty outperformed Nifty 50 today, as expected. It opened the day at 22,220 and took support near yesterday’s close. The index had its first big green candle of the day at 2pm, and kept on making higher highs to close making a day-high 22,465.65, up 364.4 points or 1.65%.

5 min chart of Bank Nifty

Nifty Pharma moved the most today giving consistent returns from the morning. Bank Nifty came in just behind through the late-stage rally of banks and NBFCs.

Asian markets closed mixed. European markets are trading in green at the time of Indian market close.

News Picks

Ashok Leyland closed at ₹77.65/share, up 3.81% after the news of the launch of the company’s new light commercial vehicles’ platform. We had talked about this in today;s morning article.

Shares of Indiabulls Housing Finance closed at ₹185.80, up 1.95% after the company announced fundraising through QIP was complete. News creates? Yes, news creates volatility.

PVR was an easy shorting opportunity today after shares of the company closed at ₹1,264, down 3.48%. It was the worst performing F&O activated stock of the day. Yesterday, the company announced net revenues were down 98.6% to ₹12.7 crore with ₹0 coming from their core business. Companies which do not innovate are going to struggle in the “new-normal” of the post-COVID world.

Shares of Grasim Industries closed at ₹718.05, up 1.56% after the company decided to go ahead with its Rs 3,523-crore viscose fibre business brownfield expansion in Gujarat.

Shares of ICICI Bank gained in early trade and closed at ₹371.7, up 2.20% after it got exemption from reducing stake in its life and non-life subsidiaries to 30% for a period of three years.

Shares of Apollo Hospital closed at ₹1,659.05, up 2.18% even after the company posted net loss for the quarter ended June 30.

Shares of Radico Khaitan closed at ₹445.85, up 7.58% after the promoters released all pledged shares. Shares hit fresh 52-week highs today. 

Realty stocks fell after ratings agency CRISIL said it expects demand for residential real estate in the country to drop by 50-70% in FY21. Nifty Realty was the worst performing sectoral index today.

Markets Ahead 

As we said today morning, Bank Nifty did see a V-Shaped reversal today, as yesterday’s fall was without much reason. But patience was key, as the major moves happened after 2pm. Hope you caught the rally today. Pharma rally was caught by us over on Telegram @fundfolio in the morning. Will this week see Nifty testing new post-COVID highs? Bank Nifty still has a long way to go, and is expected to take more time to create fresh highs. Keep watching this space for more.