Today’s Market Summarised

A breakout day again with markets closing at the day’s high.

NIFTY opened the day at 17,393 and shot up. After crossing the level of 17,500, the index consolidated. Further breakout was seen in the afternoon and ended up moving more than 250 points from the opening level. NIFTY ended the day at 17,625, up 271 points or 1.57%.

BANK NIFTY opened the day at 35,612 and saw buying. Once 36,000 was broken, the index moved another 500 points from there till closing time. Bank Nifty ended the day at 36,421, up 940 points or 2.65%.

NIFTY BANK (+2.6%), FIN NIFTY (+2.4%) and the PSU Bank (+2.1%) index moved more than 2% in the day. NIFTY METAL (+1.9%) also moved up along with AUTO (+1.6%).

Asian markets closed mostly in the green. European markets are trading in the green, with FTSE being closed.

News Picks

Coal India(+6.3%) moved up after saying that Coal output was up 3.3% to 60.2 MT in December 2021. It closed as the top-gainer in NIFTY 50.

Other than Coal India, other Nifty Metal stocks remained positive for the day. Tata Steel(+2.7%) closed up along with Hind Copper (+2.4%), Vedanta(+3.6%), SAIL (+2.7%) and Jindal Steel (+2.2%).

The auto sector remained generally positive with the auto sales data coming out. Eicher Motors (+4.9%) and Tata Motors (+3.1%) moved up the most. Ashok Leyland (+4.2%) also moved up.

Bajaj Finance (+3.4%) and Bajaj Finserv (+3.5%) closed among the top-gainers of NIFTY 50. Other finance stocks including ICICI Bank(+3.3%), IndusInd Bank (+2.7%) and HDFC Bank (+2.7%) also gained.

RBL Bank ends with gains of 4.4% today after a sharp decline last week. Federal Bank (+5%) moved up after reporting a healthy 12% YoY increase in loans.

LTI (+2.7%) hit a fresh 52-week high in the day. LTTS(+2.2%) moved up after saying it will consider Q3 results and dividend on Jan 18th. TCS(+2.1%) moved up from IT stocks in NIFTY 50.

Pharma stocks were beaten down even in the bullish market today. Cipla (-1.4%) closed as the top-loser in NIFTY 50 along with Dr Reddy (-1.1%) and Divi’s Lab (-0.58%).

With demand returning, infrastructure stocks saw buying in the day. Grasim (-2.4%), Ambuja Cement (+2.5%), Ramco Cement (-2.2%) and UltraTech (+1.7%) were among the many to move up.

M&M Financial (-2.2%) reports a loan disbursement of Rs 2,750 crores with a 42% (YoY) growth. The stock moved up.

Greaves Cotton (+12.9%) and Olectra (+5%-UC) moved up in the day along with other EV stocks.

Markets Ahead

Markets shot up for the opening day of the 2022 calendar year. On Friday, we had discussed that the 50-day moving average was crossed and sustained. The bearish trendline in NIFTY was also broken on Friday.

Today was the follow-up to this breakout. As we can see, NIFTY has found resistance at the previous swing high from December 13th.

Today, Bank Nifty also gave a breakout and gave the market confidence. The index however found resistance today at its 50-day Exponential Moving Average. We will hopefully see a breakout in the coming days as well.

India’s December Manufacturing Markit India PMI came out at 55.5 vs 57.6 last month. It is indicating a slight slowdown even though growth is being seen.

Going ahead, we can expect NIFTY to continue its bullishness and recover. Support can be expected at 17,350 along the 50-day EMA below which bears will take strength again.

Does your portfolio look better for New Year’s than in December? Let us know in the comments section of the marketfeed app! Again, wishing you a very good year ahead!