Today’s Market Summarised

Metals moving up once again in the day with unbelievable power. Along with this, India’s 7th largest company – HDFC posted results that exceeded expectations. Markets closed in the green even with fear and uncertainty of the weekend ahead.

Nifty opened the day at 14,821 and tried to move up. 14,850 acted as a good resistance and the index slowly fell just 97 points in 4 hours. Yes, Nifty traded in a 97 point today, and hence a general day of consolidation. Nifty closed the day at 14,823, up by 98 points or 0.67%. It closed just 2 points up from the opening level.

Bank Nifty was a bit bearish as compared to Nifty. After opening with a gap-up at 33,076, the index tried to move up by jumping nearly 200 points in just 10 minutes. This positivity was not sustained as all other banks except HDFC Bank fell. 33,000 could not be held strong and the index fell to yesterday’s levels. 

Bank Nifty closed the day at 32,904, up by just 76 points or 0.23%.

All sectors except Nifty PSU Bank(down just 0.14%) closed in green. But out of this, only Nifty Metal(up 4.73%) moved up by more than 1%.

Asian markets mostly closed flat in the day. European markets are all trading in the green.

News Picks

Rajasthan government announced strict lockdown from May 10 to May 24. AU Small Finance Bank fell by 3% as its 43.6% of branches are in the state.

Tata Motors will has increase the prices of its passenger vehicles by an average of 1.8%. The stock tried to move up, but closed flat.

Metal stocks once again shot up in the day, as their dream rally continues. Most stocks of Nifty Metal including Tata Steel(up 7.4%), Hindalco(up 3.95%), SAIL(up 7.9%), National Aluminium(up 10.87%) and JSW Steel(up 3.72%) hit new 52-week highs among others.

The parent company of HDFC Bank, HDFC, announced their Q4 standalone net profit at Rs 3,180 crores, up by 42% YoY and 8% compared to last quarter. Individual loans have grown by 19%. Board also approved fund raise of Rs 1.25 lakh crores via bonds and a dividend of Rs 23/share.

Dabur India reported a 34% YoY growth in net profit at Rs 378 crores for the fourth quarter. Domestic Volume has grown 25.4% in Q4. The stock closed nearly 2% down after numbers missed estimates.

M&M to open an advanced design centre for mobility products in the U.K. The stock closed 2.7% up in the day.

Carlyle Group plans to sell up to a 3.5% stake in SBI Life at minimum Rs 945 a share. The stock opened 5.5% up and then fell down near yesterday’s close. But moved back again and closed 3% up.

Hero MotoCorp Q4 result beats estimates. Profit jumped 39% to Rs 865 crore on strong revenue and operating growth. The stock fell 6% from the day high within the first market hour and finally ended 1.8% down for the day. Bajaj Auto and Eicher Motors joined Hero on the top-losers list.

Tata Consumer Products Ltd reported a net profit of Rs 133.34 crore for the quarter ended March (Q4) but missed estimates. It had posted a net loss of Rs 50 crore in the corresponding period last year (Q4 FY20). The stock is down by 3.6% as the top loser of Nifty 50.

With news of BPCL privatisation reaching advanced levels, shares ended more than 2% up in the day.

Markets Ahead

Markets closed the day with some fear as rumours floated around of a potential nationwide lockdown to be announced soon. Also the Finance Ministry’s Economic Report said that ‘the second Covid wave has hit economic activities. Vaccination is the key to economic recovery.’ Vaccination, as you all may know, is not happening fast enough.

With 33,000 still not being able to be sustained by Bank Nifty, the strength and momentum seems to have been paused. But Nifty has closed above 14,800 with the power of Metal stocks and this is a good demand zone for the index. If HDFC Bank(up 0.9%) moves up on Monday, we might see some more rally.

With the lockdown fears and uncertainity, booked profits on many swing stocks including Happiest Minds, Tata Elxsi and SAIL which we had discussed here this week. 

Reducing risk and diversifying your portfolio will help you immensely in the long-term. Never put your whole capital in to one stock, and in times of uncertainty hold some cash for averaging in dips.

Hope you had a great week with Nifty moving up 300 points from Monday’s opening and some good moves from IT, Pharma and Metal stocks.

Also check out the 1-month chart of JSLHisar and the breakout it has given. Will be a good pick for next week in a dip, if market does not turn bearish!

Hoping you had a great day in the market today. And as always, stay safe and stay home if you can. Keep studying charts and improve your skills.

Catch you all on The Stock Market Show tonight!