Today’s Market Summarised

Nifty had a very volatile day and moved more than 240 points! Just for context, the last two days Nifty traded in a 80-100 point range and today it was much much more. After opening above the key resistance of 11,950, Nifty went up quickly as expected and took resistance near 12,000. After breaking that resistance, the index refused to fly and made a day-high of 12,018 before falling and consolidating. But the big move came after 12.30pm, when global markets started losing hope of US stimulus. Nifty crashed to take support 11,780 before recovering and closing at 11,937.65, up 40.85 points or 0.34%.

Bank Nifty opened the day at 24,468 and went up and up. The index consolidated for a long time near the day-high of 24,830 and fell along with Nifty after noon. After taking support near 24,100, Bank Nifty closed the day at 24,639, up 327 points or 1.35%.

Just like yesterday, Nifty Realty rocked the sectoral indices chart with Nifty Metal coming in at second. Nifty FMCG performed the worst today.

Asian markets closed mixed for the day. European markets are currently trading in red.

News Picks

After OberoiRealty jumped 20% yesterday, Godrej Properties closed at Rs 1033, up 10.56%. The realty sector has been bullish for the past few days. Huge property companies are making use of cheap land prices to start new projects.  

UltraTech Cements reported a net profit of Rs 1,235 crores, up 113% YoY. The result has beat street estimates. Shares of the company closed at Rs 4,631.95, up 1.93% even after profit booking tried to pull it down.

Shares of Escorts fell after ace investor Rakesh Jhunjhunwala cut stake in the company to 5.64% from 7.42% earlier. Can expect some correction to the stock prices.

BAJAJ Finance reported a net profit of Rs 965 crores, down 36% YoY. Net Interest Income jumped 4% YoY. Share prices crashed before recovering and closing at Rs 3,252, down 0.31%.

Morgan Stanley has bought a 1.1% stake in Vodafone Idea, shareholder details of Q2 FY21 revealed. 

Reliance gave good movement, as expected today. After going up in the morning, shares of Reliance crashed to close at Rs 2,122.65, down 1.54%. We are preparing an article on the company’s possible move away from petroleum products to renewables. Stay tuned to marketfeed.

The FMCG index was shaken by the continued fall of Britannia, which closed at Rs 3,401.85, down 4.26%. The company had announced its Q2 results last day. Similarly, ColPal announced its results today and the stock closed at Rs 1,426, down 2.40%.

PSU stocks continued to be volatile, as predicted by marketfeed on Monday. Good scalpers could have made some quick profits in the names featured among top gainers.

Shares of builder DLF jumped 2.87% to Rs 172.85 after Standard Chartered GBS unit said it would lease 7.7 lakh square feet space for a period of 15 years in Chennai, in a project developed by DLF and GIC.

Markets Ahead

As PM Modi’s speech yesterday turned out to be a non-event, the focus was on US stimulus. According to House Speaker Nancy Pelosi, they are very close to cutting a deal which is agreeable by both Republicans and Democrats. The Indian and European markets, fearful of the cancellation of the stimulus, fell after noon but regained later. Retail players who did not enter into intelligent trades may have been hurt by the sudden volatility, but a big move in either direction was clearly expected. 12,000 has once again been proven as Nifty’s important resistance, with the index failing to close above it. When will this level truly be broken? Will we see a 12,100 or 12,200 level soon?

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.