Today’s Market Summarised

NIFTY opened the day at 17,247 and gave a breakout crossing the major resistance of 17,325. The index consolidated in a range of 35 points and moved up in the second half to face resistance at 17,400. 

NIFTY ended the day at 17,354, up 150 points or 0.87%.

BANK NIFTY opened the day at 35,134 and crossed 35,500 in just 30 minutes. Consolidation in a zone of 200 points followed and Bank Nifty ended the day at 35,482, up 418 points or 1.19%.

All the major sectoral indices closed in the green. NIFTY IT(+0.11%) consolidated after hitting another all-time high yesterday. NIFTY METALS(+1.94%) recovered yesterday’s drop completely.

Asian markets closed in the green with HANG SENG moving up by more than 1% as prices of Chinese tech stocks listed in the US surged. European markets are trading in the red except DAX.

News Picks

Hindalco(+5.7%) closed as Nifty 50’s top gainer after its business rival Alcoa Corporation  announced  temporary shut down of aluminium production at its plant. National Aluminium(+3.4%) also moved up.

It was a high demand day for Cements stocks including Ultratech Cements(+2.6%), Shree Cem(+2.1%), Ambuja Cem(+1.7%), JK Cem(+2.7%), India Cements(+2.7%) and others.

Most of all the stocks from Nifty Auto closed in the green expecting good sales data in the coming days. Amara Raja Battery(+2.9%), Bajaj Auto(+1.5%), Bosch(+2.6%), BalKrishna(+2.6%), M&M(+0.95%), Maruti(+1.9%), TVS Motor(+1.8%) and Tata Motors(+2.5%) moved up.

There was strong buying in heavy weights of Nifty Metal and Tata Steel(+0.95%), JSW Steel(1.5%), VEDL(+2.3%) closed in the green.

IDFC(+13.1%)& IDFC First Bank(+1.7%) moved up after IDFC First Bank got an in-principle nod to merge with IDFC & IDFC Financial.

RBL Bank(-2.7%) continued to close in the red after the developments it had during the last weekend.

Indigo Paints(+9.6%) shot up after brokerage firm Motilal Oswal gave a Buy rating on it.

CMS Info was listed with a weak gain at Rs 220 against the issue price of Rs 216 and closed at Rs 238, 10% up.

PB Fintech(+2.2%) rose up after its board approved investment of up to Rs 700 crores in Policybazaar Insurance Brokers.

AstraZeneca(+2.6%) has applied to India for Covishield full market authorization.

The GST Council has unanimously decided to defer the hike in GST on textiles from 5 percent to 12 percent, which was to come into effect from January 1.

Vishwaraj Sugar Industries(+2.3%) has developed technology for sugarcane syrup preservation to enhance ethanol production.

Dilip Buildcon(-7.3%) fell heavily after CBI raided its official and residential premises.

Sunpharma(+1.3%) today tested its 5-year high at 851 and you can analyse the stock in the coming days.

Century Textiles (+4.5%) surged after Antique stock broking marked a BUY call on the stock.

Markets Ahead

NIFTY was near the intersection of a short term bullish channel and a long term bearish channel. The index broke the bearish channel in the first hour itself. This gives hope to the investors. 

NIFTY was fueled by BANK NIFTY that has been consolidating for several days. At the same time, the breakout is not complete without crossing 35,500 which the index struggled to do. 

If BANK NIFTY gives a breakout along with IT that consolidated today after the rally, we can witness a sharp up-move in NIFTY towards 18,000.

As mentioned in the report yesterday, the 50-day Exponential Moving Average was watched in the day and the index has closed above the dynamic resistance and 17,350. This indicates temporary strength. Let us watch 17,600 on the upside in the coming days to confirm strength in the market.

It was great to see a breakout on the last day of the year. Let us continue our journey of learning, investing and trading in the coming year. Wish you a Happy New Year!