Today’s Market Summarised

Once again an all-time high for Nifty, but this time with much less power.

Nifty opened the day at 15,667 with a gap-up and was highly volatile. But then it slowly fell over the day  and moved down in the day. It kept moving down slowly and went down to nearly 15,600 levels. From here, Nifty gained 95 points and even touched a new all-time high within 2 hours. Nifty closed the day at 15,690, up 114 points or 0.73%.

Bank Nifty opened at 35,597 and consolidated in a 200 point range for 4 hours. After testing the day-low again, the index moved up just 300 points, breaking the 35,600 level. It took resistance at the high of June 1st. Bank Nifty closed the day at 35,649, up 275 points or 0.78%.

Nifty Realty(+3.79%) once again went up, and was followed by Nifty Media(+1.64%). All other sectors closed with a less than 1% move.

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

News Picks

Titan gained 6.65% in the day to close as Nifty 50’s top gainer. Gold prices are moving up, and consumer demand for the company’s products is moving back to normal. Market cap of the Tata Group company now stands at Rs 1.5 lakh crore.

With prices of Brent Crude moving up in the international markets, ONGC gained 4% and OIL India gained 1.5%. The stocks have hit their 52-week highs. To track such international news, including crude prices, read our Top 10 International News article on marketfeed.

After reports of Hinduja Bank’s licence being cancelled by Cayman Islands for money laundering, IndusInd Bank saw sharp selling pressure. After this, the bank gained back after it denied all reports of being a unit of Hinduja Bank. The stock closed 2.1% down as Nifty’s top loser.

Snowman Logistics closed 11% up after it partners with Dr Reddy’s for Sputnik vaccine in India.

Muthoot Finance gained another 6.8% in the day, continuing its rally from yesterday after posting results.

The central government is set to reduce GST on shipping Maintenance, repair and operation supplies from 18% to 5%. Stocks like GESHIP, COCHINSHIP,SCI and GRSE shot up in the morning and then cooled down to close in the green.

Phoenix Mills will receive Rs 830 crores from Singapore Government’s wealth fund according to Shishir Shrivastava of Phoenix Mills. The stock closed 6.7% up.

Shalby Hospital ties up with Serum Institute of India , Bharat Biotech and Dr Reddys for providing Covid-19 vaccine. Stock closed 5% up. Many hospital stocks gained in the day. Apollo Hospitals gained 4.64%, while MaxHealthcare gained 6.2%.

APL Apollo Tubes reported Q4 consolidated net profit at Rs 119 crores, up 109% YoY and down 9% from the last quarter. The stock closed 4.9% up.

The government has brought forward the target date ethanol blending programme. Eid Parry(+1.67%), DCM Shriram(+2%) and Balramchini(+3.2%) moved up.

Cadila HealthCare got tentative approval from USFDA for Osimertinib tablets used for treating lung cancer. The stock gained but was pulled down by other Pharma stocks and closed 1.1% up.

Leading domestic steelmakers have hiked the prices of hot-rolled coil (HRC) and cold-rolled coil (CRC) by up to Rs 4,000 and Rs 4,900 per tonne. Nifty Metal closed with just 0.66% gains.

Electronics stocks like Voltas(+7.6%), Crompton(+2.2%), Dixon(+2%), Blue Star(+2.3%), Havells(+2.4%) moved well in the day

From the auto sector, Escorts gained 4.7% and Eicher Motors gained 3.3%. Most other auto stocks remained flat.

Mothersumi fell 6.89% in the day after gaining over 12% yesterday. This happened after downgrades from Jefferies, CLSA and Nomura that the recent rally has made the stock a bit overvalued.

Major Realty stocks like Oberoi Realty(+9%), Sunteck(+3.7%), Godrej Properties(+1.1%), Sobha(+2.4%), Indiabulls Real Estate(+5.7%), DLF(+2.3%), Prestige Estates(+5.3%) performed well. This was after the government rolled out a new framework, Model Tenancy Act, for rental housing in India.

Markets Ahead

What a boring day honestly in the market. These are days where investors will smile and traders won’t. Not to say there were no interesting moments in the day. Bank Nifty bouncing back from the day-low and breaking the consolidation was a great sight. But even after this, the movement was limited.

No stock other than Indusind Bank fell more than 1% from Nifty 50. As this consolidation was happening, the midcap index once again rallied to its all-time highs. Nifty Smallcap gained 1.3% as well.

This was the first weekly expiry with the reduced leverage rules by SEBI. Did it affect your trades in a good or a bad way? Let us know in the comments of the marketfeed app.

Most of this consolidation is contributed by India VIX dropping another 8% today, indicating that the markets are now very less volatile.

According to an official, the government is soon set to notify Production Linked Incentive(PLI) schemes for auto components, steel and textile sector. Do make a list of your favourite companies from this space, and have a study.

Do have a study of the Model Tenancy Act discussed above as well. Expecting some renewed power in the realty sector in the next cycle of markets rally.

Hope you had a great day in the market!

Catch you all on The Stock Market Show tonight!