Today’s Market Summarised

Nifty gives another breakout to a fresh all-time highs.

Nifty opened the day with a gap-down at 17,867. The index showed bullishness and easily crossed its all-time high at 17,947. The 18k mark was also tested and broken. However, from 1 PM, profit booking started and the index fell nearly 80 points. Nifty closed the day at 17,945, up 50 points or 0.28% right near today’s opening level.

Bank Nifty opened the day at 37,795 and went up. The resistance at 38,100 was crossed with a 300-point move in just the first 30 minutes of trade. Towards the second half of the day, the index kept on moving up and created a fresh all-time high near 38,500. With a slight fall near the end, Bank Nifty closed the day at 38,293, up 519 points or 1.37%.

NIFTY AUTO(+2.6%), NIFTY REALTY(+1.7%), NIFTY METAL(+1.5%) and FIN NIFTY(+1.3%) outperformed in the day. The NIFTY IT(-3.3%) index saw some correction led by TCS(-6.3%).

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

News Picks

The rally in Nifty 50 was led by auto stocks – Tata Motors(+8.5%) and Maruti(+3.6%). A combination of new models and the upcoming festival season sent Tata Motors share to Rs 420 highs. M&M(+2%) also gained to touch Rs 900.

Tyre stocks continued to move up along with autos – Apollo Tyres(+2.5%), JK Tyres(+0.5%), Birla Tyres(+8.1%), CEAT(+1.9%) closed in the green while MRF(-1%) closed in red.

Power stocks returned to be in focus for the day with Coal India(+4.4%), Power Grid(+3%), NTPC(+2.6%), ONGC(+2.5%) closing among Nifty’s top-gainers. Tata Power(+8.2%), Torrent Power(+7%) and Indian Energy Exchange(+12.2%) also saw bullishness.

China’s coal futures hit an all-time high as floods worsen the energy crisis.

Energy Minister Satyendra Jain says, most of the power plants are currently left with 2-3 days of stock. All the plants in NTPC are working at 55-50% capacity but supply of coal is a big problem at the moment.

Aditya Birla Group companies Grasim(+3.3%), Hindalco(+2.9%) closed among the top-gainers of NIFTY. Vodafone Idea closed with losses.

IT stocks saw heavy profit booking after the results announcement by TCS(-6.3%). All 5 top-losers in Nifty 50 were from the IT sector with most gaining back some losses from a gap-down opening through the day. TechM(-2.7%), INFY(-1.9%), HCL Tech(-1.4%), Wipro(-1.2%) closed in the red.

Other IT stocks including COFORGE(-5%), Mphasis(-4.4%), MindTree(-4%) and LTI(-1.7%) also closed in the red.

Indigo(+4.3%) and SpiceJet(+1.8%) gained after the Indian government formally announced its exit from the aviation sector with the sale of Air India on Friday.

Aditya Birla Sun Life AMC listed at Rs 715 vs issue price of Rs 712, and closed at Rs 698, slightly in the red.

Finance Ministry says India’s economic recovery gained further momentum in September. India has attracted an FDI inflow of Rs 2 lakh crores in the first four months of FY22, up 62% YoY.

Antony Waste(+10.1%) jumped up after reporting a fall in total compost sales during Q2 FY22 at 2,908 tons as compared to 4,850 tons in Q1 FY22 and 3,327 tons in Q2 FY21.

Saregama India(+5%-UC) shares hit upper circuit after reporting Q2 consolidated net profit Rs 33.8 crores vs Rs 28.2 crores of last year. Revenue stood at Rs 145 crores vs Rs 110 crores last year.

Radico Khaitan(+5.2%) launched some highly awaited brands including Magic Moments Dazzle Vodka and share prices moved up. From the sector, UBL also moved up while McDowell closed in the red.

GMR Infra(+9.2%) says it will bring the corporate debt to zero and closed among top-gainers in F&O stocks.

Equitas Small Finance Bank(+6.9%) gained sharply with positive commentaries from the bank. Bandhan Bank(-5.5%) however saw profit booking and closed in the red.

Markets Ahead

A clean breakout in Nifty and Bank Nifty was seen in the morning despite IT shares pulling down the index. The rally took both indices to fresh all-time highs.

HDFC Bank did give the Bank index a boost to cross the 38k mark with ease, with results would to be out on Saturday. We can expect more movement from private banks ahead of the Q2 results.

Short covering might be seen in the market with strong put buildup being seen at the 18,000 mark today. Option sellers have created straddles at this point for the weekly expiry, mostly to cover losses by Nifty crossing 18k intraday.

However, the closing in Nifty was not very satisfactory. It was almost 100 points down from the day-high, just near the previous all-time high.

Keep a watch on banks and airlines this week. A sector being completely privatized is a dream come true for corporates, and airlines and the banks which fund them are looking bullish this week. Just take a look at how SBI closed at 3:30 PM!

Did you catch the move in Nifty or Nifty 50 stocks? Also, Tata Motors fans let us know your presence in the comments down below! Meet you all on The Stock Market Show at 7 PM on YouTube!