Today’s Market Summarised

Nifty breaks out once again and closes at new all-time highs with a clear bullish trend.

Nifty opened the day at 17,404 and kept on moving up through the day. It confirmed bullishness by breaking the all-time high and just kept going up. After breaking even 17,500, Nifty closed the day at 17,519, up 139 points or 0.80%.

Bank Nifty also opened the day flat at 36,637 and tried to move down. Once again, the support was taken at 36,500 and Bank Nifty quickly bounced back up. After yesterday’s high was broken around 2 PM, the index quickly jumped but could not touch the 37k mark. Bank Nifty closed the day at 36,852, up 239 points or 0.65%.

Nifty PSU Bank(+2.83%) and Nifty IT(+1.82%) shot up to outperform other sectoral indices. Only Nifty Media(-1.55%) ended in the red after yesterday’s dream rally.

Asian markets closed mostly in the red today. European markets are trading flat currently.

News Picks

Energy stocks outperformed in the day with NTPC(+7.1%), Coal India(+4.1%), ONGC(+3.6%) and Powergrid(+2.1%) featuring in the top-gainers of Nifty 50. Price hikes and fuel demand going up around the country is a possible reason. Tata Power(+5.3%) also gained.

Coal India(+4.1%) has also requested the Government to look at tweaking tax rules, after which we may see share buybacks which could boost prices of the stock

Bharti Airtel(+4.5%) once again rallied to 52-week highs after the government approved delayed payment of AGR Dues. Vodafone Idea(+2.8%) also gained with 100 per cent foreign direct investment (FDI) in the telecom sector being approved as part of its comprehensive package for the telecom sector. Possible takeover of Idea coming?

Stocks related to the telecom industry, especially PSU Banks with high debt exposure to Idea moved up. SBI(+2.5%), PNB(+2.5%), Yes Bank(+2%), IDFC First Bank(+1.4%) and IndusInd Bank(+1.6%) shares closed with bullishness.

Ami Organics(+20%-UC) which got listed in the market yesterday, hit the upper circuit in early trade today. 

IT stocks including TCS(+1.6%), Mindtree(+4.5%), Goenka group’s Zensar Tech(+18.9%), Mphasis(+4.4%), CoForge(+1.3%) hit fresh 52-week highs in the day with money flowing into the sector.

After reports that rice prices could increase, shares of related stocks Chaman Lal(+5.9%), LT Foods(+6.2%) went up.

ZEEL(-2.1%) was locked in the 10% upper circuit in the morning but fell more than 15% from day high.

SpiceJet(+5.9%) introduces 38 new domestic and international flights. Indigo(+1%) also moved up.

Telangana Govt forms panel for Larsen and Toubro(+1.5%)‘s Hyderabad metro rail bailout.

Titan(+3.1%) soared to fresh all-time highs with bullishness with brokerages going bullish and fresh offerings from the company’s Tanishq brand.

US Patent and Trademark Office has granted Subex’s(+2.7%) patent application that helps to maximize the revenue of telecoms.

NCC(+7.3%) emerged as the lowest bidder to construct all 3 packages of Bangalore metro’s 37 km airport line.

Sources said during the market hours that the Indian cabinet has approved the Production-Linked Incentive scheme for the auto sector. India to spend Rs 26,058 crores on Production Linked Incentive scheme for auto, the drone industry.

Tata Motors DVR(+12.8%) extended gains over the standard Tata Motors(+1.9%) share with heavy institutional buying. The orange line is Tata Motors DVR share prices compared to standard shares.

Markets Ahead

Nifty broke out to touch and cross 17,500 with strength in the day, with our bearish view on the index being negated.

Infosys, TCS and other IT stocks continuing to rally with Foreign Institutional money flowing into them have helped the market move up. Just these two stocks alone 35 points to Nifty today.

Along with this, Bank Nifty got the confidence to break out with the telecom sector reforms announced by the government today. Including reduced payments, highly debted companies including Vodafone Idea will get 4 years to pay off their dues to the government. This has given some confidence to shareholders of their lending banks.

Not just Idea, Bharti Airtel also rallied and the co’s market cap today crossed that of SBI, nearing Rs 4 lakh crore. We will have to see if this confidence in telecom and bank stocks are continued tomorrow.

Bank Nifty once again took support at 36,500 and moved up. The range will continue to act as good support for the index.

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