Today’s Market Summarised

Markets move to a consolidation mood, falling from the initial gap-up openings.

NIFTY opened the day at 18,156 and soon hit an intraday high. with a gap-up of more than 100 points. From the top, the index fell more than 130 points by 1 PM. After a lot of consolidation in the afternoon, NIFTY closed the day at 18,109, up 7 points or 0.04%.

BANK NIFTY also followed a similar pattern in the day. After opening at  38,924 in the morning, the index tried to briefly cross above the 39k mark. But this failed, and a fall along with consolidation was seen. BANK NIFTY could not break yesterday’s high and closed the day at 38,702, down 31 points or 0.08%. 

NIFTY PHARMA(+1.4%) and NIFTY FMCG(+0.94%) moved up in the day. NIFTY METAL(-1.8%) and NIFTY PSU BANK(-1.4%) fell as others saw consolidation.

Asian markets closed mostly in the green today. European markets are trading mixed currently.

News Picks

Energy-related stocks saw sustained buying interest like we discussed in the Week Ahead article yesterday. PowerGrid(+3.4%) and ONGC(+2%) closed as the top-gainers of NIFTY 50. ONGC had also reported good results over the weekend.

Pharma index is near a breakout zone in the charts. Cipla(+2.4%) and DivisLab(+1.3%) closed in the top-gainers list. Laurus Labs(+8.5%), Biocon(+4.4%) and Gland Pharma(+5.1%) also jumped.

Apollo Hospital(+8.8%) was boosted by a 4x jump in net profits, and an increase in non-COVID revenue. Other hospital stocks including Fortis(+7.4%), Max Healthcare(+7.8%), MetroPolis(+7.8%), Narayana Hrudulaya and more gained.

ITC(+2.2%) and Nestle India(+1.7%) also closed with gains from the FMCG index.

Coal India(-4.3%), Tata Steel(-3.2%), Hindalco(-2.7%) and JSW Steel(-1.4%) closed as the 4 top-losers in NIFTY 50 and were all from the metal index.

CoForge(+1.4%) gets approval for listing in ADR in the United States and moved up.

PB Fintech, parent company of PolicyBazaar listed at Rs 1,163/share, with a premium of 19% per share and moved up to Rs 1,202 by market closing.

Non-Banking Financial institutions Manappuram(-9.7%), M&M Finance(-5.9%), Chola Finance(-2.1%), Ujjivan(-9.2%) and more saw heavy selling. There was a fall in net profits reported by Manappuram over the weekend due to lower interest income.

IEX(+2.4%), BSE(+5.1%), IRCTC(+4.4%0 and MCX(+1.1%) saw buying in the day.

Ashok Leyland(+4.3%) said it is in talks with investors to raise funds for EV subsidiary switch mobility.

Bosch India(-1.5%) shares fell after Joint MD and CFO S.C. Srinivasan resigned.

Adani Enterprises(+2.6%) continued its breakout to all-time highs and moved up.

Markets Ahead

NIFTY continued to sustain above 18,080 for the second trading day in a row. Even though the index closed in green, there was a bearish move after the morning gap-up.

On Friday, Foreign Institutional Investors were net buyers in the market. But if we look at the overall last week, they were net sellers in the cash market. There is no particular interest yet being shown from them in the cash market. BANK NIFTY continues to trade in an important zone above the supports at 38,500 and 38,350. More buying is expected in the index if all goes well.

There are very few local cues in the market currently awaited. Consumer Price Inflation data was within estimates and major Q2 results are now over. Wholesale Inflation for October came out today at 12.54% vs 10.66% last month. The estimate was 11.14%.

The moves coming now could be crucial as they are without any news based movements. 

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