Today’s Market Summarised

A very mixed day in the market with very high volatility. Almost all sectoral indices closing in the red, but Nifty still closing flat!

After SGX Nifty’s dramatic turn from red to green, Nifty opened with a 50-point gap-up at 14,749. But this was not sustained and the index fell 130 points in the first 30 minutes! In the next half hour, it tried to move up another 100 points. After this, a sharp fall took the index down to 14,600.

Clearly a volatile day! But after this fall, Nifty slowly moved back up to close at 14,677, down 18 points or 0.13%.

Bank Nifty opened at 32,518 and moved around. The index was clearly bearish for the whole day, unlike Nifty which tried to move back up. It tried to take 32,300 as support but broke the level before noon. The index could not move back up and sustain above this level.

After testing the support at 32,100 multiple times, Bank Nifty closed the day at 32,169, down 282 points or 0.87%.

Nifty FMCG(up 2.13%) was the only sector to close in the green. Nifty Metal(down 3.76%), Nifty Realty(down 3.19%) and Nifty Auto(down 2%) performed the worst. Nifty IT, Media and Pharma also closed more than 1% down each.

Major Asian markets closed in the green. All European markets are trading in the green with small gains.

News Picks

Asian Paints reported an 81.13% jump in its consolidated net profit to Rs 869.89 crore for Q4. The stock consolidated after the morning rally and closed up by 8.5% as Nifty’s top gainer.

Shares of UPL closed 7.4% up after Q4 net profits jumped 74% YoY to Rs.1063 crores.

Larsen & Toubro won another large order worth Rs 2,500-5,000 crores. The stock moved 3% up from the day low and closed 2% up among Nifty’s top gainers.

FMCG stocks rallied in the day right from the market opened. Yesterday, data from Nielsen, global research agency said that the industry saw a 9% growth in the January-March quarter. This was higher than the December quarter where growth was 7%. 

5 out of the top 10 gainers in Nifty 50 were FMCG stocks – lead by ITC (up 4.4%).

Nifty Metal(down 3.76%) saw a sharp sell-off once again with all stocks in it closing in the red. The index was nearly 6% down by noon, and moved up.

Jindal Steel(down 8.61%) was down nearly 14% at one point but came back up. NMDC closed 8.5% down. 3 out of the top 5 losers in Nifty 50 were from Nifty Metal – Coal India(down 4.36%) & Hindalco and Tata Steel both down 4%.

Tata Motors fell 4.22% in the day, followed by all other Nifty Auto participants in the red. Results of the automaker will be published on May 18, and fundraising will be considered as well.

Cadila HealthCare said that they are on track for a May-end submission of its Covid-19 vaccine and that they should be able to supply 5 crore doses by year-end. It closed as Nifty Pharma’s worst participant(down 4.61%).

Lupin reported an 18% increase in its consolidated net profit at Rs 460 crore for Q4. The stock fell 2.7%

After formally starting vaccination with Sputnik-V, Dr Reddy’s tried to stay in the green even as other Pharma stocks fell. The company is still importing the vaccine and is months away from production. During the day, a 29% YoY fall in net profits to Rs 554 crore was announced and the stock closed 2% down.

Tractor manufacturer Escorts reported a 5% fall in consolidated net profit posted as Rs 271 crores compared to last quarter. The stock closed 1% down, as results were in line with estimates.

Welspun India closed 11% up after approving the buyback of equity shares at the price of Rs.120/share. The current market price is at Rs.101.35.

Apollo Tyres fell 6% as the company announced a 35% fall in net profits for Q3 compared to last quarter.

IEX closed down by 6% after Q4 results along with Happiest Minds(down 8.2%) as profit booking kicked in.

Markets Ahead

A generally bearish day in the market, with Nifty being kept flat by just a few stocks. Even with Asian Paints, ITC and Reliance pushing up Nifty by 60 points, it closed in the red. Nifty has closed 260 points down from Monday’s opening level, while Bank Nifty is down nearly 1,000 points.

A strong pullback from Reliance‘s Rs 1,900 support helped Nifty today. The stock closed more than 1.25% up but still can’t be called bullish.

Almost all banking stocks closed in the red, and Bank Nifty is near its key support at 32,000. Last week we had talked about how this support looks strong, but that might not be the case next week. Most banking stocks are near support levels.

The fear of rising Covid-19 cases are back even as a top government advisor said more than 200 crore doses of vaccines will likely be available in India between August to December this year.

PM Modi in an online video address has said that the Indian govt is making efforts to vaccinate citizens quickly and all roadblocks are being removed.

As markets close for the weekend, Nifty has still closed above 14,650 support. Bank Nifty’s move in the next week will decide Nifty’s fate. But then again, 14,000 continues to be a very strong support which has very low chances of being broken in May.

So it is indeed a rangebound market, with buying when market falls to 14,200-14,500 ranges and selling when it reaches back to 14,900-15,000 ranges. So go with the flow, and invest wisely.

Take some time off over the weekend, but also remember to check out some charts and study them. Let us hope it will be a refreshing weekend for us and the market in the middle of the month. Let me know in the comments section of marketfeed App how the week went by for you!

Catch you all on The Stock Market Show tonight!