Today’s Market Summarised

Nifty consolidates and closes at all-time highs. Sees power from Reliance hitting another 52-week high.

Nifty opened with the day at fresh all-time highs of 17,399 with a gap-up. The index however fell after crossing 17,400 and was consolidating after that. Nifty closed the day at 17,377, up 54 points or 0.31%.

Bank Nifty opened the day at 36,817 and was in a mood to consolidate. After falling slightly in the beginning, the index moved sideways till closing time. After taking support at Friday’s low, Bank Nifty closed the day at 36,592, down 169 points or 0.76%.

Nifty Realty(+3.1%) shot up once again, followed by Nifty IT(+1.5%) and Nifty Media(+1.3%). Most other sectors consolidated.

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

News Picks

IT stocks dominated the day with Wipro(+4.7%), HCL Tech(+2.1%), Infy(+1.7%) and TechM(+1.3%) closing in the top-gainers of Nifty 50.

Mphasis(+2.4%), OFSS(+1.4%) and Mindtree(+1.2%) also closed in a day where Nifty IT stocks mostly closed in green.

Reliance(+1.5%) moves to record high again touching an intraday high of Rs 2480. The stock is nearly 20% up since July end.

Realty shares moved up in the day once again. Brigade(+6.3%), Prestige(+13.4%), Sobha(+6.3%), Oberoi Realty(+7.2%), Sunteck(+2.2%) and Godrej Properties(+1.5%) shot up.

IRCTC(+4.8%) gained and closed above Rs 3,000. The stock is waiting for a 1:5 split soon. 

IndiaMART(+9.6%), IRCTC(+4.8%), Escorts(+4.9%), IEX(+4%), Polycab(+4.2%), MCX(+3.1%) were among the top midcap gainers.

Aluminium shares including National Aluminium(+5.6%) and Hindalco(+1.7%) shot up. This was after reports suggesting that the Army has taken over Guinea, a country with the world’s largest Bauxite(Aluminium Ore) reserves. This may increase aluminium prices.

Welspun India(+8.8%) becomes the first Indian company to receive USFDA approval for its 3 ply surgical masks.

Consumer durable stocks moved up with Bajaj Electricals(+8.3%), Voltas(3.1%), Blue Star(+2.8%), Crompton Greaves(+2.5%) moving up. 

India’s Gold Imports in August increased by 92% to 121 tonnes compared to last year.

Manappuram(+2.8%), MuthootFin(+1.1%) moved up slightly.

Markets Ahead

Reliance and Infy held up Nifty today while all three major private banks – HDFC Bank, ICICI Bank and Kotak Bank pulled the index down.

With the India Volatility Index(VIX) moving up once more, the market is indicating a volatile week ahead. The index has closed at its highest level since June.

The week has started off on a muted note with just Realty and IT rallying the most. I think Nifty still has power and will continue to trade with 17,200 and 17,000 as important supports.

Midcaps and small-caps have now started gaining power, which could also indicate its time for Nifty to consolidate. There is now a strong call option buildup at 17,500 ranges, indicating that this could be the upper level for Nifty this week. However, there are still more than 1.2 lakh contracts at the 18,000 level also.

The U.S. markets are closed tonight on account of Labour Day, and we may not get a strong indication from there. SGX Nifty is now trading above 17,400 and might give a gap-up tomorrow if it continues. U.S. Futures are trading in the green.

Do you think the large-cap rally will take a pause? Is the high Option Interest buildup at 18,000 indicating more up move? Let us know what you think about it in the comments section of the marketfeed app!