Today’s Market Summarised

A day of volatile consolidation in the market. Nifty went up, then it went down. And then it closed right where it opened the day at.

After opening the day with a gap-down at 14,337, Nifty traded in a 75-point channel for the first one hour. Just before noon, it even crossed yesterday’s high and tried to move up. From the high, selling pressure across all major stocks took Nifty down nearly 200 points. Nifty closed the day at 14,341, down 64 points or 0.45%.

Bank Nifty opened at 31,552 and was very volatile in the first hour. But even in a day of net consolidation, Bank Nifty moved 750 points from the day’s low to high. With the afternoon profit booking, Bank Nifty fell nearly 600 points then closed at 31,772, down 60 points or 0.19%.

Only Nifty Media and Nifty PSU Bank closed in the green today. But no index, except Nifty Realty(down 1.10%), moved more than 1% up or down.

Major Asian markets closed mixed. European markets opened and have started falling sharply, possibly influencing Nifty’s fall today.

News Picks

Zydus received emergency use approval from DCGI for the use of ‘Virafin’ for treating moderate Covid-19 cases. Interestingly, 91.15% of patients treated were RT-PCR Negative by Day 7. Cadila HC gained 3.32% in the day.

Shares of PVR(up 5%) and Inox Leisure shot up after the Cadila report. Indian Hotels closed 5% up.

Markets tried to move up with this news, with all pharma stocks moving up after this news hit. 

Maharashtra Health Minister says that Mumbai oxygen issues resolved, Remdesivir distribution issues will be resolved in two days. Pharma stocks remained weak in the day, but gained in the final hour.

Pfizer said that report/tweets that Pfizer is currently in discussions with Aurobindo over the Covid-19 vaccine agreement are inaccurate & baseless. 

Current reports say that Dr Lal Pathlabs has not stopped RTPCR collection and testing it as per capacity. The stock had fallen after reports of Delhi

Germany’s Linde and the Tata Group secure 24 oxygen transport tanks for India. You can check the article about Linde India here.

Powergrid Infrastructure Investment Trust files for IPO. It comprises fresh issue of up to Rs 4,993 crore. Share prices closed 3.78% up constantly from the start of the day.

Torrent Power will set up a 300 MW capacity solar power plant in Gujarat at an estimated cost of Rs 1,250 crore. Stock is up by 2.3%.

Tata Elxsi net profit has increased 40.3% to Rs 115.16 crore in the March 2021 quarter. The stock opened with a huge gap up and ended 5% up.

Zomato founder Deepinder Goyal denies IPO RHP filing after reports of filing Red Herring Prospectus with SEBI. Naukri closed 1% up.

Insurance stocks moved up, with ICICI Prudential Life(up 4%) and HDFC Life(up 1.5%). SBI Life was up more than 4% but closed flat at market close.

Finance stocks went up in the day, especially midcaps. SRTransfin closed 4% up, followed by M&M Finance, MFSL, Manappuram up 1-2%. Muthoot Fin was up 4.7% in the day.

Shares of Indus Towers fell more than 3% after reporting net profit increase of 38% Rs 1,364 crore in Q4 compared to last year. But the profit numbers remained flat compared to last quarter.

Markets Ahead

Compared to last Friday’s close, Nifty has fallen nearly 260 points this week. But this week has ended with net consolidation if you look at the weekly charts. Interestingly, Nifty has fallen for three weeks in a row, the longest row of losses in 11 months.

Reliance’s fall of 1% and HDFC’s fall of 3% from last Friday has made Nifty’s weekly close worse than that of Bank Nifty’s. Who would have guessed!

30,000 continues to be strong support for Bank Nifty as we discussed last Friday. Nifty has reached 14,200 this week, and 14,000 is the next strong support if it is broken strongly.

The drug developed by Zydus looks very promising. If it can really cure 90% of mild Covid-19 cases within 7-days, then the pressure on hospitals and the economy will reduce. This might be a turning point for our market if global markets had supported as well.

Once the US market stabilises after the Biden announcement of increasing taxes, our markets may turn around next week. So enjoy your weekend, but don’t forget to put some time in for studies as well!

Catch you all on The Stock Market Show tonight!