Today’s Market Summarised

Nifty opened the day at 11,492 with a gap-up, even when Friday’s global markets were in red after The President of The United States, Donald Trump, was tested positive for Covid-19. The news that Donald Trump was ready to get discharged from the hospital may have helped. On its way up, Nifty consolidated near 11,550 in the morning. Nifty went on to touch its day high near 11,580 before eventually reversing trend and going down and taking support at 11,450. The index closed the day at 11,503.35, up 86.40 points or 0.76%.

Bank Nifty actually pulled down Nifty for the whole day after 11am. The index opened with a gap-up at 22,380 and moved up to a day high of 23,768 very soon. After forming a double-bottom pattern (The W-shape in the chart), Bank Nifty crashed to a day low near 22,250. The index recovered after 1.30pm to close at 22,370, up 125 points or 0.56%.

Nifty IT was undoubtedly the best performing sectoral index, with very positive sentiments surrounding the industry. TCS and Wipro were the top-gaining stocks in Nifty 50 today. Nifty Auto traded in slight red, mainly due to two-wheeler stocks not performing today. Nifty Metal had also performed well, with Tata Steel and JSWSteel featuring in the top-gainers list.

Asian markets mostly closed in green. European markets are currently trading in green, just under 1%, very similarly to Nifty.

News Picks

According to the Indian Government’s affidavit filed with the Supreme Court on Friday,  “it is willing to waive compound interest for all borrowers with loan amounts less than Rs 2 crore. This would be applicable for Micro, Small, and Medium Enterprises (MSME) loans and retail loans across most categories. The affidavit also suggested that this relief would be applicable to all borrowers “irrespective of whether someone had used the moratorium or not.” The court has given time till October 12th for every stakeholder to respond. Bank Nifty fell after hearing about this further delay.

Shares of TCS closed with a gain as much as 7.55% till Rs 2,713 after the company announced it is considering share buyback during its quarterly results meeting on October 7. It was the top gaining stock in Nifty 50 today. With this,TCS market cap has touched Rs 10 lakh crore, and it is only the second company to do so after Reliance Industries. Shares of IT companies have been showing constant growth since the last few months.

With rumours floating around that Wipro is also considering a share buy-back, shares of the company closed at Rs 335, up 7.01%.

Shares of Tata Steel jumped 4.93% to close at Rs 382.95 after Chinese steelmaker, Jingye expressed an interest in taking over Tata Steel‘s loss-making UK operations. The trading idea was shared on @fundfolio today. Did you catch it?

Shares of Reliance fell 0.46% in a bullish market to close at Rs 2,215. It seems like the Rs 33,000 crores raised by Reliance Retail is yet to reflect in the stock.

Shares of Angel Broking were listed on the exchanges today, at a lower price than the IPO issue price. This is the first IPO after March without any listing gain. Is the trend over, now?

Share prices of SAIL closed at Rs 35.25, up 3.22% after the company said that it is exploring new markets for the sourcing of coking coal with a view to reducing dependence on select countries for the raw material.

Route Mobile shares closed at Rs 825, up 5.30% after the company said it has completed the acquisition of intellectual property and its associated contracts from TeleDNA for over Rs 12 crores. The company had earlier had a listing gain of over 100% in their IPO.

Finance Minister Nirmala Sitharaman is going to hold a virtual media briefing on the outcomes of the 42nd GST Council meeting at 5:45 PM in New Delhi today. Keep watching marketfeed for an in-depth analysis.

Markets Ahead

Nifty has come back up to strongly reclaim 11,500. The index is expected to face some tough resistance near 11,600, but has broken a downtrend for the time being. Even with a correction, lots of short term supports have formed below. The verdict of interest on the interest case being delayed is surely irritating all Bank Nifty contracts traders. With such a huge case still in courts, Bank Nifty is expected to be volatile this week. Also, steel stocks are moving back up after they fell heavily in the last 2 weeks. Hoping you all will join us for the first episode of marketfeed’s ‘The Stock Market Show’ tonight on YouTube.