Today’s Market Summarised

NIFTY fails to hold early morning gains as IT stocks continue to see profit booking.

NIFTY opened the day at 18,235 and went up 80 points initially. From here the index fell 280 points to the day-low after falling slowly and slowly till 2:30 PM. After a small bounce back, NIFTY closed the day at 18,114, down 63 points or 0.35%.

BANK NIFTY opened the day at 40,213 and showed strength. The area between 40,150 and 40,200 acted as a good support for the index which soon jumped up even above 40,500. There was weakness in the general market and BANK NIFTY fell to close the day at 40,323, up 293 points or 0.73%.

NIFTY REALTY(+2.56%) closed in the green while most other indices were weak. NIFTY METAL(-3%), NIFTY MEDIA(-2.2%), NIFTY PHARMA(-1.5%), NIFTY IT(-1.4%), NIFTY AUTO(-1%) and NIFTY FMCG(-1.2%) closed in the red.

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

News Picks

HDFC(+2.1%) continued to show bullishness from yesterday and closed as NIFTY 50’s top-gainer. Yesterday’s gainers Kotak(+1.2%) and Axis Bank(+1.1%) also moved up. IndusInd Bank(+1%), ICICI Bank(+0.5%) also closed slightly in the green.

Bajaj Auto(+1.6%) closed among the top-gainers of NIFTY with results from TVS Motors(+7.4%) giving it confidence. However, Eicher Motors(-1.9%) closed in the red.

Nifty Metal stocks Hindalco(-4.7%) and Coal India(-3.5%) closed among the top-losers in the day.

ITC(-3.3%) and Tata Consumer(-2.4%) closed in the red from the FMCG index. Nestle India(-1.1%), Godrej CP(-1.7%) and Colgate(-1.8%) moved down. The India expert group on Tobacco is likely to seek to raise tax on tobacco to 75% of the retail price in the short term.

The RBI Deputy Governor Rao says the Non-bank Financial Sector is at a major turning point right now. Indiabulls Housing(-7.8%), LIC Housing(-7.1%) and Canfin Homes(-5.9%) closed in deep reds. LIC Housing and Canfin had announced their results yesterday.

Federal Bank(+7.6%) Q2 net profit rises nearly 50%, NII up 7% and the stock moved up.

Midcap banks including AU Bank(+2.9%), Bandhan Bank(+2.1%), RBL Bank(+1.9%) closed with gains. Muthoot Finance(+2.2%) also gained.

Railways related companies showed bullishness again. RVNL(+20%-UC), Ircon(+8.7%), IRFC(+6.6%) and IRCTC(+1%) closed in the green.

IEX(+0.88%) opened at 10% Upper Circuit and fell to close flat after its results.

Concor(+2.3%) raised guidance for FY22 from 12% volume and revenue growth to 15% volume and revenue growth.

Inox(-0.45%) and PVR(-2.1%) closed in the red after announcing losses in Q2.

Hindustan Zinc(-5.7%) fell sharply after reporting standalone net profit at Rs 2,000 crores vs Rs 1914 crores last year. The estimate was at Rs 2,200 crores.

Markets Ahead

Markets once again pulled down by IT stocks and ITC. NIFTY ended the week of all-time highs with a 400 point fall from Monday’s opening levels.

Support was taken again today but the market indicated weakness by briefly breaking the 18,050 mark. ITC moved down on expectations of Tobacco tax increasing. 

Bank Nifty however held strong. Even after testing the day-low multiple times, the index closed above it. Kotak Bank has been showing strength and was joined by HDFC and HDFC Bank in keeping the market stable today.

The sell-off in mid and smallcap stocks are continuing. The results season is not helping the stocks, which have seen huge rallies in the last many months. We can expect it to stop only when NIFTY starts to move sideways now.

How did the week go for you? How are your holdings looking on the fourth day of fall for NIFTY? Let us know in the comments of the marketfeed app!

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