Today’s Market Summarised

Nifty touching a fresh all-time high and Bank Nifty breaking out!

Nifty opened the day at 15,878 and moved up. 15,900 was taken as resistance and then was broken with strength in the morning. All-time high at 15,915 was also broken and then consolidation was seen. Nifty closed the day at 15,924, up 70 points or 0.44%.

Bank Nifty opened at 35,766 and was volatile. The very important zone at 35,800 was broken after 10:45 AM and the index shot up. But from here, strict consolidation was seen with Bank Nifty almost touching 36,000 and not falling below 35,800. Bank Nifty closed at 35,907, up 240 points or 0.67%.

Nifty Realty(+4.20%) and Nifty IT(+1.29%) moved up with strength. Most other sectors closed flat.

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

News Picks

Continuing the bullishness from yesterday, IT stocks once again shot up. HCLTech(+5%), TechM(+3.1%) and Wipro(+2.5%) closed as top-gainers in Nifty 50.

Engineering company LTTS(+18.9%) gained well after posting Q1 earnings yesterday. Parent company L&T(+4.1%) and LTI(+4.8%) also moved.

Larsen and Toubro once again moved up sharply and hit a fresh 52-week high. We had talked about how it is in an important zone yesterday. 

Nifty Metal closed with gains with Hindalco(+2.5%) and Tata Steel(+0.9%) closing in the green. Other Nifty Metal stocks including APL Apollo(+4.8%), HindZinc(+3.5%) and SAIL(+1.3%) also closed in the green.

SAIL(+1.33%) moved up after Rakesh Jhunjhunwala’s name appeared in the June shareholding list of SAIL.

ONGC(-3.2%) fell in the day with crude oil prices around the world falling. OIL(-2.7%) also fell.

Midcap IT company Happiest Minds touched the 1500 mark and closed 12.8% up.

Banks closed in the green, boosted by HDFC Bank(+1.44%) and also AUBank(+4.7%). AU Bank was also moving up after the breakout we discussed last week. 

There are reports saying that Reliance is planning to buy JustDial for Rs 5,900-6,600 crores. Just Dial closed 2.5% up. Reliance said that it cannot comment on the deal yet.

RBL Bank(-1.74%) joins with VISA to provide Credit Cards after its partner MasterCard was banned by the Government of India. The stock closed in the red.

Realty stocks jumped in the day once again. IBREALEST(+6.6%), Sobha(+19.1%), Prestige Estate(+6%), Godrej Properties(+3.5%), Sunteck(+3.4%), DLF(+3.5%) and Oberoi Realty(+4%) were the notable gainers.

Kolte Patil(+4.3%) develops a platform with Planet Smart City to develop 15,000 housing units.

Sources say Pfizer, Johnson and Johnson are yet to apply for a license of Covid-19 Vaccines in India. Pfizer closed 1.8% down.

IT management company BLS International(+3.8%) tied up with Flipkart to provide last-mile services.

India may consider a PLI scheme for the Wind Energy Sector. Inox Wind(+9.4%) and Suzlon(+3.8%) closed in the green.

JSW Energy(+9%) gained in the day continuing rally from yesterday after announcing fundraising plans yesterday.

Markets Ahead

Bank Nifty moving up to 35,800 and crossing that level gave it so much power. The target we discussed yesterday for the index was 36,000 if 35,800 was crossed. 35,985 was the day-high for today

IT stocks supported the market with Infy and Wipro alone contributing nearly 40 points to Nifty. When this happened Reliance and HDFC Bank saw selling so as to keep Nifty flat.

Reliance failed to cross 2,100 and HDFC Bank shot up after opening above the 1,500 level.

Volatility existed but the breakout at 35,800 was clean. Nifty did make a fresh high as Bank Nifty crossed this level.

Nifty has reaffirmed its bullishness by closing above 15,900. The rally looks like it will continue to 16,100 and above next week or by the end of July. The support at 15,650 will continue to be a very strong level along with 15,820.

Bank Nifty has an important resistance at 36,000 level too. Last time this was easily crossed with power from the Nirmala Sitaraman candle during the Budget week. Let’s see if the power is continued!

Expecting the realty rally also to continue, as we kept watch for it last week.

How did your expiry go? Were you able to catch the breakout of Bank Nifty? Let us know in the comments section of the marketfeed app.