Today’s Market Summarised

Market jumps around on the day of monthly expiry and closes with consolidation.

Nifty opened the day at 16,632 and tried to jump up. It could not even cross yesterday’s high and saw profit booking. Down below, 16,600 was a strong support with option sellers at the level staying strong. After trading in an 80 point range, Nifty closed the day at 16,636, up just 2 points or 0.01%.

Bank Nifty opened at 35,508 and tried to move down. However, slow buying in the index gradually pushed it up to near 35,800 levels by 2 PM. This level was not broken and profit booking pulled the index down. Bank Nifty closed the day at 35,617, up 31 points or 0.09%.

Most sectoral indices saw consolidation in the day. Nifty Media and Nifty Metal closed in the red.

Most Asian markets closed mixed in the day with Hong Kong markets again showing weakness. All the European markets are currently trading in the red.

News Picks

FMCG stocks once again performed in the day with other indices looking weak. Britannia(+2.2%) and Tata Consumer(+2%) closed among Nifty 50’s top-gainers.

Other stocks from the sector including PGHH(+3.5%), VBL(+2.2%), Marico(+1.9%) also closed with gains. Read more about what we think about Marico, here. Funnily enough, ITC closed 0.8% in the red.

BPCL(+1.3%) saw heavy buying towards the end of the day, with privatisation buzz around the company saying that global oil majors are interested. September 16th is the ex-dividend date for the Rs 58/share dividend in the stock.

Bharti Airtel(-4.1%) fell ahead of its board meeting on August 29. Vodafone Idea(-6.3%) and Indus Tower(-2.4%) were also weak.

M&MFin jumped 5.5% up after the company confirmed the news of the new CEO appointment. CholaFin(+3.8%) also moved up.

AFFLE(+5%-UC) hit upper circuit after it approved stock split in ratio 1:5.

Intellect Design(+3%) moved up after winning a multi-million dollar deal from the Middle East.

A subsidiary of Reliance Industries(+1.2%), Reliance Life Sciences, applied for approval for the phase-I trial of its Covid vaccine candidate.

BSE(+2.2%), MCX(+2.1%), IEX(+2.7%), CDSL(+0.6%) and CAMS(+1.5%) have slowly started moving back up.

Marksans Pharma(+2.7%) gets USFDA approval for the drug Acetaminophen, used to treat mild to moderate pain.

Metal stocks could not sustain yesterday’s bullishness and mostly closed in the red. NMDC(-4.9%), SAIL(-3.4%), National Aluminium(-2.9%) and JSW Steel(-1.7%) moved down.

From September 1, bumper to bumper insurance coverage on new cars sold in Tamil Nadu is mandatory, after a ruling from the Madras HC. This is a piece of good news for insurance firms. NIACL(+3.1%), GICRE(+2.1%), ICICI General Insurance(+0.4%) moved up near the end of the day.

Markets Ahead

Nifty traded in a tight range on the day of monthly expiry. At a lot of places, it gave impressions that a breakout/breakdown would come but then reversed.

If you look at the chart of HDFC Bank, it did cross our level of 1,565 and give a move but saw profit booking. The strong Open Interest buildup made me think that it could have given a breakout if it was not the monthly expiry day.

Reliance once again continued its rally. After the Supreme Court ruled against the company on August 6th in the Reliance Future deal case, many had expected the stock to move down. But we had talked about how this cleared up uncertainty around Reliance and that it might now move up. The stock is nearly 7% up since.

The 36,000 level still remains strong for Bank Nifty, and I do expect a good move soon. The index is seeing many of its participants at good levels, keep an eye on Axis Bank.

Since tomorrow marks the start of the September series, what do you expect? Can Bank Nifty shake off the bears and move above 36k? Or will it need more time? Let us know in the comments of the marketfeed app.