Today’s Market Summarised

A bullish start to the week with most NIFTY 50 stocks closing in the green.

NIFTY opened the day at 17,788 with a small gap-up and was highly volatile for the first hour. Just before 11 AM, the market bottomed out and started moving up in a channel. Once the day high was broken, heavy buying took the index even higher. NIFTY closed the day at 17,929, up 258 points or 1.46%.

BANK NIFTY opened the day at 39,446 and was volatile like NIFTY. It continued to follow the benchmark indices patterns and at around 1:30 PM, broke the day-high of 39,500. The last-minute power took the index above Friday’s high and BANK NIFTY closed the day at 39,764, up by 648 points or 1.66%. 

NIFTY REALTY(+4%), NIFTY METAL(+3%), NIFTY IT(+2.5%) and NIFTY MEDIA(+2.5%) outperformed in the day. All sectoral indices closed with more than 1% gains.

Most Asian markets closed in the green today. European markets are trading in the green currently.

News Picks

IndusInd Bank(+7.8%) closed as the top-gainer in NIFTY 50, nearly gaining to its levels last Thursday after results were announced.

Metal stocks were highly bullish in the day along with Realty shares after Asia’s manufacturing activity grew in October as emerging economies saw Covid-19 infections reduce. Hindalco(+4%) and Tata Steel(+3.7%) closed in NIFTY’s top-gainers.

SAIL’s(+8.8%) 8-fold increase in net profit numbers pushed the stock up. Other metal stocks including National Aluminium(+4.5%), Jindal Steel(+3.2%) and JSW Steel(+2.9%) also moved up.

Telecom stocks were in focus after Reliance(+0.06%) launched its much-awaited Jio Phone Next for Diwali. Analysts predicted that there would be no significant impact on the industry, and Bharti Airtel(+3.9%) and Idea(+5.7%) shot up. Indus Towers(+5%) also closed in the green. Reliance was in the red mostly, but recovered near closing time.

TechM(+3%) and HCL Tech(+3.9%) stocks closed in the gainers list after falling heavily last week. Other IT stocks including Infosys(+1.9%), TCS(+2.3%), Mindtree(+5.3%), Coforge(+4.2%) and LTTS(+3.7%) closed in the green.

Dr Reddy(+3%) closed among top-gainers with a good recovery in net profit and revenue numbers. SunPharma(+2.1%), Lupin(+2.3%), Glenmark(+2%) and Divis Lab(+1.5%) also moved up.

UPL(-2.7%) opened and saw heavy selling after reporting its results over the weekend.

Auto sales data have started coming out for the month of October. Escorts(-1.5%) reported a 1% YoY fall in Agri Machine Total Sales Unit  to 13,500 units.

M&M(-1.5%) fell after reporting October sales numbers 8% down YoY to 41,908  units.

Two-wheelers stocks mostly tried to close in the green, led by Eicher Motors(+3%) and TVS Motors(+1.3%). Bajaj Auto(+0.5%) also closed slightly in the green.

IOC(+2.8%) to set up a mega-scale Maleic Anhydride plant at Panipat, for an investment of Rs 3,681 crores.

Lux Industries(+6.9%) jumped up after posting Q2 Net Profit Rs 100 crores vs Rs 51.2 crores last year.

Maruti(+1.7%) gained after October Total Sales came out at 1.38 lakh units, down 25% YoY but better than estimates. 

Meanwhile, Tata Motors(+0.4%) reported a 30% YoY increase in October Total Domestic Sales to 67,829 units. However, they reported a Rs 4,441 crores net loss for Q2 after the market closed.

HDFC(+1.5%) reported Q2 net profit at Rs 5250 crores, up 14% YoY and better than estimates.

DeltaCorp(+6.4%), PVR(+3.1%), IndHotel(+5%), Chalet(+4.3%), EIHOTEL(+1.3%) – Hotel and theatre stocks closed in the green.

Realty stocks were highly bullish in the day, Godrej Properties(+5%), Lodha(+8%), Sobha(+7.5%), Brigade(+3%) and Oberoi Realty(+6.5%) outperformed.

Markets Ahead

A good bounce back in the market from Friday’s fall. The question is now if this up move will be sustained. India’s Oct Nikkei Markit Manufacturing PMI shows an expansion at 55.9, compared to September. 

On the other side, inflation is expected to rise as LPG prices for commercial cylinders increased by Rs 266 today.

Many stocks have bounced back from their good supports but those may break if tested and the market moves down again. Just like last day when most stocks closed in the red, today most closed in the green.

We can expect 17,600 for NIFTY to be the first support below 17,750. If 18,000 is broken tomorrow on the upper side, we can expect more move towards the upper side because of the heavy call writing at that level.

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