Today’s Market Summarised

Markets seeing volatility and net consolidation. Nifty closes the monthly expiry exactly around June month’s expiry range.

Nifty opened the day with a small gap-up at 15,770 and was consolidating in the green. The candles were big and volatile after 12 PM. Even after crossing 15,800, the index did not find enough strength to close above it. Nifty ended the day at 15,778, up 70 points or 0.44%.

Bank Nifty opened at 34,741 with a gap-up and was very volatile. The index saw selling pressure before noon and fell to take support at 34,500. Just when European markets opened in green, the index shot up back to day-highs. With net consolidation, Bank Nifty closed the day at 34,691, down 158 points or 0.46%.

Nifty Metal shot up more than 5% today, with Nifty PSU Bank moving up more than 3.5%. Nifty IT(+1.39%) and Nifty Realty(+1.61%) gained while Nifty FMCG closed 1% down. All other sectors closed with consolidation.

Asian markets closed in the green. European markets are all trading in the green as of our market close.

News Picks

Metals rally continued with raw metal prices once again moving up. China has also raised export tariffs for some steel products from August. Hindalco(+10%), Tata Steel(+6.8%) and JSW Steel(+3.7%) closed strongly in the green in Nifty 50’s top gainers. Tata Steel and Hindalco gave Nifty 30 points out of its total 70 point gain.

National Aluminium(+8.7%), VEDL(+6.8%), SAIL(+6%), NMDC(+4.9%), Jindal Steel(+4.2%) also closed in the green.

Bajaj Twins once again showed up in the top gainers with Baj Finserv(+4.5%) and Baj Finance(+2.2%) moving up.

SBI(+3.7%) shot up to fresh 52-week highs ahead of its Q1 results. The stock alone contributed 175 points to Bank Nifty’s 160 points up move.

PowerGrid(-26%) opened with a gap-down due to the bonus issue in the ratio of 1:3. You can ignore the stock in today’s top losers section.

Tata Motors(+2.9%) gained with reports that they will be increasing prices of passenger vehicles. Maruti Suzuki closes 2% lower after reporting a weak set of earnings.

CoForge(+9%) gained sharply after announcing results yesterday. MindTree(+3.2%) and LTI(+6.4%) also closed in the green.

Tatva Chintan listed at Rs 2,396/share vs issue price of Rs 1,083/share, at a premium of 121%. Closed at Rs 2,312, up 113%.

Tata Teleservices partners with Zoom to provide unified communications solutions to Enterprises. The stock closed in the 5% Upper Circuit.

Colgate-Palmolive reported Q1 standalone net profit at Rs 233 crores, down 40% QoQ. The stock closed 4.6% down.

Balrampur Chini to consider share buyback & Q1 result on Aug 9. The stock closed 7.8% up.

Tejas Networks locked in the 5% upper circuit as Tata Sons is set to acquire a controlling stake in the company.

LIC Housing Finance reported more than 60% YoY drop in Q1 standalone net profit at Rs 153 crores. The stock fell 4.2%.

Jio adds 35.4 lakh customers. Bharti Airtel loses 46.3 lakh. Idea loses 42.9 lakhs. Reliance was showing strength in the morning. Bharti Airtel is losing subscribers for the 1st time since June 2020.

Tech Mahindra reported Q1 consolidated net profit at Rs 1350 crores, up 30% compared to last quarter.

Markets Ahead

Nifty has closed the July month expiry at the exact same level as of June month’s level. Was a very interesting expiry with volatility but net consolidation!

Metal stocks continued to rally just as we expected. Jindal Steel, which we had talked about yesterday, gained more than 4% intraday.

15,800 was not sustained and this is showing that there is still not enough strength in the market. Bank Nifty staying below 35,000 is another sign of weakness.

The point of reversal could be the Q1 results from HDFC and SBI. SBI results, if good enough, will provide confidence to all other banks and help Bank Nifty move up. Otherwise, this consolidation is likely to continue or may even see some bearishness.

Internationally, automaker Volkswagen has cut the sales forecast for this year due to the microchip shortage. This could be the reason that Auto stocks continue their consolidation even with decent sales data numbers.

Hope you had a profitable expiry in the market! Let us know in the comments section down below how it went for you!

Catch you all at The Stock Market Show sharp at 6:30 PM!