Today’s Market Summarised

What an opening for Nifty in the market, with all indexes and most stocks opening with good gap-ups.

Nifty opened the day at 15,075 with a 150-point gap-up. This was the highest gap-up since March 3rd. It took support at 15,050 and stayed the whole day above this level. For the most part of the day, the index traded in just a 50-point range. Nifty closed the day at 15,108, up 185 points or 1.24%.

Bank Nifty opened nearly 500 points gap-up at 33,928 and even went on to break the 34k mark for the first time since 29th April. Heavy consolidation was seen in a 300 point zone just around the 34,000 mark. Bank Nifty closed the day at 33,922, up 463 points or 1.38%.

Only Nifty PSU Bank(down 1.3%) closed sharply in the red today. Nifty Auto(up 3.22%) performed the best, going up throughout the day. Nifty Metal(up 1.66%), Nifty Pharma(down 0.2%) and Nifty FMCG(down 0.2%) fell sharply after the gap-up openings.

Major Asian markets closed in the green. All European markets are also trading in the green at the time of market close.

News Picks

Reliance Jio said it is constructing the largest international submarine cable system centred on India with global partners to cater to increased data demand. Reliance went up to Rs 2,000 mark and closed 1.3% up.

Bharti Airtel reported a consolidated net profit of Rs 759 crore, down 11% compared to last quarter. The Average Revenue Per User(ARPU) numbers also fell to Rs 145. The stock fell 2.4% in the day and closed as Nifty’s top loser.

Auto stocks went up considerably in the day, with all stocks in Nifty Auto closing in green. Ashok Leyland(up 6.5%), M&M(up 5.85%) and Bajaj Auto(up 5.25%) went up most in the day. 

Tata Motors moved 3.5% up ahead of Q4 results. Results are expected to be published today after market hours.

Hero Motocorp has restarted production at three of their plants yesterday. The stock moved 1.8% up.

Bharat Forge to purchase remaining stake in Kalyani Strategic Systems, and make it a wholly-owned subsidiary of the company. Bharat Forge closed 3.5% up.

Canara Bank fell sharply and closed more than 4% down in the day. The PSU Bank reported net profit of Rs 1,011 crore, but Gross NPA rates have moved up to 8.93% vs 7.46% last quarter.

Quick Service Restaurant stocks like Jubilant Foodworks(up 5%), Burger King(up 9%), Westlife Development(up 4.5%) performed well on the day. You can read more about the industry here. They moved as KFC and Pizza Hut franchisee Devyani International filed for a Rs 1,400 crore IPO yesterday.

Global crude oil prices touched $70/barrel for the first time since March, with expectations of demand recovery. After the news, oil stocks like IOC(3.5%), HindPetro(5%), ONGC, OIL, BPCL(all up 1-2%) moved and closed in the green.

The recently listed drug firm Gland Pharma reported a 34% rise in its consolidated net profit to Rs 260.4 crore for Q4. The stock closed 9% up in the day.

After market hours, Torrent Pharma reported consolidated net profit for Q4 at Rs 324 crores, up 3% YoY and 9% compared to last quarter. The stock closed 1.5% down in the day.

Titan closed nearly 5% up at Rs 1,540 in the day, continuing its rally from the Rs 1,400 support that we had discussed at the beginning of May.

Markets Ahead

Nifty has blown away even the expectations of bulls by opening above the 15,050 resistance level. And interestingly, this level was taken as a support in the day, indicating bullishness. Nifty has closed at its highest level since 10th March.

Even though SBI looked weak, Reliance and HDFC Bank supported the market in today’s rally. Just these 2 stocks alone contributed 60 points to Nifty’s 180 point gain. But we saw a lot of active participation from all heavyweights today.

The next immediate support for Nifty looks to be at 14,900 if 15,000 is broken. 15,100 was respected today, and the market closed above this. I think we will be seeing more bullishness in the days ahead with Nifty moving to 15,200 and above.

Suddenly, all-time highs look possible again for Nifty, with Bank Nifty still far away from its all-time high levels.

The last-minute increase in the premiums of call option contracts even though Nifty stayed flat is interesting. This too indicates more bullishness.

If SBI does help Bank Nifty ahead of its results, more movement can be seen. Reliance could not break the 2,000 marks today, keep an eye out for the level tomorrow. If SBI and Reliance do not support the market, we might see consolidation.

Catch you all on The Stock Market Show tonight!