Today’s Market Summarised

Market closes slightly in the green after opening with a huge gap-up.

Nifty opened at 17,902 and jumped up with power from IT stocks. The index touched an all-time high near 17,950 in the first few minutes then started showing weakness. Slowly, the index fell nearly 130 points from the day-high. After recovering, Nifty closed the day at 17,853 up 30 points or 0.17%.

Bank Nifty opened the day at 37,996 and briefly traded above the 38k mark. It failed to sustain the move, and the index fell along with most other stocks in the market. Bank Nifty closed the day at 37,830, up 58 points or 0.16%.

Nifty Realty(+1.5%) was the only index to close well in the green. Nifty Metal(-2.1%), Nifty PSU Bank(-1.8%) and Nifty FMCG(-1.1%) remained weak.

Asian markets closed mixed in the day. European markets are all trading in the red today.

News Picks

Asian Paints(+3.8%) gave a breakout to fresh 52-week highs. It was the top-gainer in Nifty 50. 

Bharti Airtel(+1.7%) featured in the gainer’s list. Other telecom stocks – Vodafone Idea(+9%) and Indus Towers(+13.8%) also moved up. Indus Tower closed at a fresh 52-week high above 316.

Steel stocks closed with weakness as Tata Steel(-3.5%) and JSW Steel(-2.6%) closed among the top-losers. National Aluminium(-2.8%) and Jindal Steel(-3.2%) also moved down along with other metal stock.

Many chemical companies jumped today with Tata Chem(+4.4%) leading the rally. RCF(+11.2%), ChamblFert(+11.2%), GujAlkali(+9.4%) and NFL(+7.4%) and FACT(+6.9%) closed with gains in Nifty 500.

Hospital stocks saw profit booking with Apollo Hospital(-6.9%) and Narayana Hrudayalaya(-5.8%) closing in the red. Max Healthcare(-1.7%), Metropolis(-1.8%) and Dr Lal Pathlab(-3.7%) also closed in the red.

Realty stocks closed mixed with Oberoi Realty(+10%), DLF(+2.1%) and Phoenix Ltd(+2.3%) closing with gains. Meanwhile, Hemisphere Properties(-4%), IBReal Estate(-2.2%) and Sobha(-1.4%) fell.

IRCON(+2.8%) closed in the green after getting order worth Rs 224 crores to set up 500 MW solar power plant

Markets Ahead

There is a slight sense of profit booking in global markets. Interestingly, only Indian market is now at its 52-week high, while others are still 1-3% down from this level.

Today, Bank of America said that its Global Equity Funds saw the first outflow in 2021, which was also the largest outflow since March 2020. 

BofA Weekly Note also talked about the Biggest Outflow From U.S. Equity Funds Since Feb 2018, and Largest Outflows From European Equity Funds In 2021. This is not a random event as it is being seen worldwide. Keep in mind that a correction could be possible.

Mostly a consolidating day with the Midcap index closing in the red. I feel that this could be an indication of a small correction in the market. European markets are in the red, and Bitcoin has also moved down 3-4% with crackdowns in China. Crude oil is still in the green.

Interestingly, even when the markets have fallen after rallying there are always investors who seem to be confident in buying the dip. Make sure your portfolio of long-term picks are fundamentally strong and this could help you outlast corrections. 

Reliance failed to stay above 2,500 after opening at its fresh 52-week high. But HDFC Bank held up Nifty by contributing more than 30 points.

Keeping a watch of 17,950 as immediate resistance and 17,800 as the immediate support for Nifty.

Hope you had a great week in the market. Make sure to check out some stocks for studies during the weekend and also to find some time to chill out!