Today’s Market Summarised

Nifty opened the day with a big gap-up and quickly made a red candle. The red candle went down and took support at 12,960, as expected. From there on the index started moving up non-stop till almost near market close. After touching a high near 12,130, Nifty fell near the end of day to close at 13,109.05, up 140.10 points, or 1.08% for the day. The index looks bullish in its 1-day candle, as vaccine hopes pushed the index up.

Bank Nifty opened the day at 29,767 and fell sharply. The index of banks fell over 200 points in 5 minutes and took support near 29,500 levels. From here banks showed an amazing performance and went up to touch even 29,900+ levels. But overall, it could be called as a day of consolidation for Bank Nifty. The index fell towards the end of day to close at 29,817.85, up 208.80 points, or 0.71%.

While every major sectoral index closed flat or in green, Nifty Realty was the best-performer. PSU Banks also went up today.

Major Asian markets closed in the red green today. All European markets are also currently trading with big gains, tracing positivity from the vaccine news of Moderna.

News Picks

Share prices of SUNTV were in a good breakout zone, as said by us on Friday here. After opening, it went up more than 2%, but calmed down to close at Rs 445.05, up 1.16%.

Shares of Bata India fell over 1.82% to Rs 1,544.20 after the company announced the appointment of current India CEO Sandeep Kataria as the company’s global CEO.

Auto manufacturing stocks remained under pressure with just Bajaj Auto as an exception. Auto ancillary stocks gained, with MotherSumi up more than 5% in the day. Auto sales data for the month of November have started to come out.

Shares of Auropharma closed up 3.25% to Rs 896.75, after the company said it expects to commercialise its vaccine manufacturing facility in Hyderabad by May 2021.

Last week’s key gainers in the mid-cap finance space corrected today. SRTransfin, CholaFin and Manappuram were the top losers in the F&O segment.

As international oil prices recover due to vaccine hopes, GAIL and ONGC shares shot up today.

ABB Power Products and Systems India shares jumped 10% to Rs 1,254 after the company signed a Memorandum of Understanding (MoU) with Ashok Leyland and the Indian Institute of Technology Madras (IITM) for an e-mobility pilot project. The stock has gained 33% in the last 3 days. Shares of Ashok Leyland remained flat for the day.

Markets Ahead

Moderna said today that their vaccine 100% effective even against severe cases of Covid-19 and is set to seek emergency clearance from both US and UK. This has surely pumped in positivity in to the global markets with European markets rallying up. Dow Futures are also up, indicating that there might be a gap-up opening tomorrow.

This is what the world was hoping for, a no nonsense vaccine that will just work, with no side-effects. But now that it is here, how much more will Indian markets rally? Will the still underperforming banks continue to rally? Can Reliance really push Nifty up? One thing is clear, vaccine news can still move global markets.

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