Today’s Market Summarised

Nifty opened the day at 14,600 and tried to was very volatile. After finally deciding to move up, Nifty could not sustain above 14,680 and mostly consolidated in the day. Between 9:30 am and 3 pm, the index moved in an 80-point channel. In the last hour, Nifty fell more than 110 points as heavyweights fell. Nifty closed the day at 14,617, up 36 points or 0.25%.

Bank Nifty also saw a day of consolidation, trading in a 400 point zone. After opening at 32,170, Bank Nifty tried to break 32,300 but could not find enough power. The index remained volatile in a very tight range. Bank Nifty closed the day 31,977, down 135 points or 0.42% in the day.

Nifty Pharma(up 1.90%), Nifty Media(up 1.87%) were the best performing sectors in the day. Nifty IT and Nifty Auto were both up 1.21%.

Asian markets closed flat but all in the green today. European markets are trading in the green.

News Picks

After Wipro posted a 27% YoY jump in consolidated net profit at Rs 2,972 crore yesterday, the stock was highly bullish in the morning. Closed the day up by 9%.

A government entity announced a collaboration with Tata Power to set up solar-powered microgrids and water pumps in rural areas across the country. Tata Power closed the day nearly 3% up.

Railway Board Chairman Suneet Sharma said that no state has asked the railways to stop any train service yet. Shares of IRCTC gained after this to close 1% up in the day.

Q4 revenue of GTPL Hathway is at 748 crore rupees vs 635 crores (YoY) and  net profit is at 56.9 crore rupees vs loss of 13.6 crores (YoY)

Ashok Leyland has completed the delivery of bulletproof vehicles to the Indian Air Force. The stock closed up by 1.5% in the day.

Nalco got a mining lease for Utkal-E Coal Block. The block has a total mineable reserve of about 70 MT. The stock closed 1.55% up in the day.

Aluminium stocks generally remained bullish in the day after global aluminium company ALCOA reported strong earnings for the last quarter. Hindalco was up 4.65%, followed by Vedanta at nearly 3% up.

After reports came out that Cadilac Health had completed Phase-III trials of their Covid-19 vaccine on children, the stock shot up to close up by 4.44%.

Most Cement stocks went up in the day, with the expectation of higher profits as cement prices continue to go up. UltraCem gained nearly 2.7% in the day.

Vivmed Labs received approvals for three products from its Hyderabad plant. Stock made an amazing run, closing up by 15.8%.

Remdesvir producing Pharma companies generally remained bullish in the day, as demand for the anti-viral drug increased. In fact, all stocks from Nifty Pharma closed in the green.

Shares of DCM Shriram hit an all-time high after moving up nearly 20% in the day.

CAMS went up 11.47% to hit an all-time high. The stock will continue to move up as mutual fund penetration in the country improves.

Shares of Angel Broking closed nearly 9% up after it onboarded nearly 4 lakh customers during March 2021, a record for a month. Added nearly 10 lakh clients in the January-March quarter.

Markets Ahead

Chandigarh is imposing a weekend curfew. Uttar Pradesh govt announced a lockdown every Sunday. Weekend curfews, Sunday curfews and night curfews still sound like a joke to me and will help with nothing but hurting businesses. Instead more awareness, stricter mask and quarantine rules can be enforced.

Markets also feel the same way, with no apparent reactions to the new lockdowns across the country. Centre Govt once again said it has no plans for a nation-wide lockdown.

Nifty has posted yet another weekly loss, unable to recover properly from Monday’s fall. It is the 4th weekly fall in the last 5 weeks.

Interestingly, Nifty Pharma was the only sectoral index to close with gains this week(up 1.8%). Nifty PSU Bank was down 7% followed by Nifty Media and Realty both down 5%.

Hoping everyone is ending the week with net profits. Personally got the chance to pick up some good stocks in the dip. You can always maintain a list of strong stocks from good sectors which could rebound well after sharp falls.

For context, in a week when Nifty and Bank Nifty closed with 1.5% losses, HDFC Bank is up in green. The dip was a beautiful opportunity for those who capitalised it well.

Also, there is a chance for further jump in SBI Cards(up 6% today). Citigroup is planning to exit retail banking in India and its 27 lakh strong credit card portfolio could be up for grabs. If SBI Cards manages to grab the customers directly, it could add well to its 1.2 crore credit card portfolio. But of course, HDFC Bank and other players will be interested too. 

Have a chill weekend, and do not forget to open a few charts and look into some annual reports as well. SBI Cards is one stock you can look into, a very interesting company which for disclosure I am personally holding.

Have some tea, and enjoy your weekend.

Catch you all on The Stock Market Show tonight!