Today’s Market Summarised

In a day dominated by bulls, all sectors in the market move up and close in the green. 41 out of the Nifty 50 stocks close positive.

Nifty opened the day at 14,509 and started to move up soon. After breaking 14,550 which was yesterday’s high, the index found its pace. Slowly and steadily, the index started moving up breaking 14,600 in the process. Nifty closed the day at 14,653, up 168 points or 1.16%.

Bank Nifty opened at 32,281 and created a very confusing first candle. 32,300 and 32,500 were taken as good supports in the way up. With HDFC Bank and SBI both moving up, Bank Nifty found it easy to rally. After testing 32,800 Bank Nifty closed the day at 32,735 up 460 points or 1.43%.

Nifty Metal and Nifty PSU Bank(up 2.30%) both went up most in the day. Nifty Bank and Nifty Media closed more than 1% up. All other sectors closed under 1% in the green.

Major Asian markets closed mixed in the day. European markets are currently all trading slightly in the red.

News Picks

RBI issued guidelines for the appointment of auditors in Banks, NBFCs. This is to ensure that auditors are appointed in a timely, transparent, effective manner. Banking and NBFC stocks reacted in a good way.

The Supreme Court allowed Vedanta to operate the oxygen plant in Tuticorin on a standalone basis. Stock is up by nearly 3%.

Zydus Cadila’s new drug ‘Virafin’, which is considered successful in the treatment of Covid patients, will soon be available in three districts of Uttar Pradesh. Shares of Cadila gained from deep reds, but still closed 1.19% down in the day.

Maruti Suzuki India’s net profit falls below estimates. Q4 profit was declared to be Rs 1,170 crore, down nearly 10% compared to last year. Do not forget that last Q4 was considered to be a bad performance due to Covid-19 and Maruti has performed worst than that. The stock closed 1% down.

Shares of Tata Motors gained 2% in the day, moving up sharply after the Maruti results.

SBI will be holding a board meeting on April 28 to consider raising Rs 14,938 crore. It will be likely used to protect the loan book against bad-loans due to the lockdowns. Shares of the banker gained nearly 2.5-3%.

Hindustan Zinc net profit for Q4 stood at Rs 2,480 crore, up 85% YoY. The stock ran like anything after the results and is up by 4.5%.

SBI Cards and Payment Services reported a 110% rise in net profit at Rs 175 crore for Q4. The stock is up by 3.6% in the day.

HDFC Life Insurance reported a 2% increase in its standalone profit after tax to Rs 318 crore in the quarter ended on March 31, 2021. Stock is down by 3.6% after many days of moving up. But still, income from premiums have grown at 23% and this might be a good dip to add/average the stock if it is in your portfolio.

Copper prices hit all-time high. Hindalco, the aluminium and copper manufacturing company, became the top gainer of Nifty 50, up by 5.14%.

Steel plants in the country are supplying liquid medical oxygen (LMO) to various states amid rising demand. Tata Steel has increased its daily oxygen supply limit to 600 tonnes a day. JSW Steel is preparing to lower steel output to boost oxygen supply.

Many factors including robust demand from China and falling demand from Chile have taken up Metal prices. All stocks from Nifty Metal closed in the green, except SAIL.

Chemical companies saw heavy buying with many rallying up with huge volumes. Deepak Nitrate closed nearly 9% up, followed by Navin Fluorine up 8%. 

Other speciality chemicals shares were also up. Alkyl Amine, Balaji Amines both gained 20%. Sudarshan Chemicals(up 16.47%) was followed by GNFC(up 12.67%).

Markets Ahead

With the vaccine hopes and improved reports of new efficient drugs against Covid-19, markets have continued the journey up. This is exactly what we talked about in Friday’s postmarket report, that markets are set to move up from here.

And interestingly, the private banks’ results have also cheered up the market. With this and Nifty closing above 14,500, we might see more movement up in the coming days. If this happens, a change of sentiments could take Nifty to 14,800 and maybe close to 15,000. Reliance is also back in the bullish mode, up nearly 2.5% today.

Bank Nifty has 32,800-33,000 as the next important resistance zone.

But all this cannot be done without the help of Foreign Insitutional Investors who have sold sharply in April till yesterday. Hoping for many days of FIIs turning net buyers ahead.

Wishing that the Covid situation in India turns around and becomes stable like the market has moved back up. Stay safe everyone!

Catch you all on The Stock Market Show tonight!