Today’s Market Summarised

A bullish day in the market. After remaining closed on Wednesday, Nifty opened with a gap-down and consistently went up in the day.

After opening the day with a 70-points gap-down at 14,225, Nifty tried to move down in the first candle. But today being the weekly expiry, some magic was sure to happen. After 30 minutes, the opening level was broken and Nifty went up throughout the rest of the day. The majority of this power was given by financial stocks. Nifty moved up 270 points from the day-low and closed the day at 14,406, up 109 points or 0.74%.

Bank Nifty’s was highly bullish in the day, with almost all participants closing in the green. After opening at 30,728, Bank Nifty moved up nearly 1300 points from the day-low. A proper uptrend with both private and PSU Banks shooting up. Bank Nifty closed the day at 31,782, up 669 points or 2.15% for the day.

But interestingly, all sectors did not move up equally. Nifty Financial Services(up 2.13%) was followed by Bank Nifty(up 2.15%). Media, Metal and Realty indices were up 1-2%. Nifty FMCG fell the most, but down only 0.74%.

Major Asian markets also closed mostly in the red today, with Japan’s Nikkei 225 up more than 2%. All European markets are trading in the green.

News Picks

Caplin Point Lab received USFDA approval for Neostigmine Methylsulfate injection. The stock closed up by 3%.

Lalit Agarwal of V-Mart Retail said that Tier-I and II towns are the most impacted now by fresh lockdowns and will lose at least 40-45% of business in Q1. The stock recovered to close 2% down, after falling nearly 5% intraday.

India’s sugar export data is out, giving even more strength to the sugar rally. Exports stand at Rs 17,072 crore, up 39.64% compared to last year. Balrampur Chini closed 7% up, and Eid Parry closed 2.5% up.

Filatex India’s Q4 net profit jumped nearly 5x to Rs 118 crore vs Rs 21 crores last year. Stock is up by nearly 2%.

Tata Motors fell sharply intraday after subsidiary JLR suspended UK car plants work due to the shortage of semiconductor chips. Stock closed down more than 1%.

Indiabulls Housing Finance and HDFC entered into a strategic co-lending partnership to offer housing loans at competitive rates. Indiabulls HSGFin was up by 12% at one point and closed up 6%. HDFC gained more than 2.5%.

After Tata Steel BSL amazing net profit numbers, shares of the company closed up by 4%. Tata Steel closed up 3% in the day.

With this, many metal stocks turning bullish again. Ace investor, Rakesh Jhunjhunwala, said in an interview today that he is a large investor in metal stocks & expects the demand is going to be huge over the next decade.

Reliance’s media firm, TV18 Broadcast, reported a 77.03% increase in its consolidated net profit for Q4. The stock closed 20% up in the day. Parent company Network18 gained nearly 12%.

With Wipro announcing a 2nd salary hike, and investors turning bullish again, stock prices closed 3.52% up in the day. 

Cement stocks continued to be under pressure with ShreeCem, UltraCemco featuring as top-losers in the day. 

Markets Ahead

With how ICICI Bank was flying up in the morning, and seeing Kotak & HDFC Bank, I was personally highly bullish on Bank Nifty in the day. It did outperform even Nifty and went above my targets of 31,500.

The majority of market sentiment was lead by this one simple logic which took up Bajaj Finance and Bajaj Finserv last day. Good finance companies with the ability to raise capital will be safe against the Covid-19 threats. With this, 4 out of the top 10 gainers in Nifty were banks/NBFCs.

PM Modi addressing the nation and saying that a lockdown is advised only as a final resort would have given markets some confidence.

COVID-19 vaccine registration for people of 18 years and above will start on Saturday, April 24(update: Date is confirmed as April 28).

Also following up, AstraZeneca shares went up 10% in the day. Pfizer shares crashed 5% after media reports announcing the signing of a vaccine agreement with AuroPharma

IT shares are all about getting in at good levels, as proved by Wipro hitting a 52-week high today. More up move for the stocks including small-caps like Happiest Minds is expected.

So in every market crash/dip, average or pick up new stocks to your portfolio. But make sure that this portfolio is a strong one, consisting of the best companies of their sector.

Bank Nifty is still under 32,000 and Nifty is still under 14,500. So don’t think that the market can be called bullish yet.

Catch you all on The Stock Market Show tonight!