Today’s Market Summarised

Volatility returning to the market with markets returning back to high intraday movements. 

Nifty opened the day with a gap-up at 16,293 and was falling. It took support near 16,200, exactly near yesterday’s support. Just after 12 PM, the index got more power and started moving up. Yesterday’s high was crossed and Nifty made a fresh all-time high but last hour saw profit booking. Nifty closed the day 16,294, up 36 points or 0.22%.

Bank Nifty opened the day at 36,115 and fell sharply till 35,650 in just more than 1 hour. The 500 point fall showed bearishness, but Bank Nifty quickly reversed from this low and shot back up to above 36,000 level. There was volatility near the end, and profit booking made Bank Nifty close at 35,834, down 193 points or 0.54%.

Most sectoral indices once again closed in the red with Nifty Media and Nifty Realty falling below 1%. Nifty Metal moved up.

Asian markets closed mostly mixed today. European markets are all trading in the green as of our market close.

News Picks

Bharti Airtel(+4.2%) moved up and closed as Nifty 50’s top gainer. Idea’s fall along with a breakout in the stock helped it shoot up. Subsidiary OneWeb also reportedly received a Satellite license from DoT India for a period of 20 years.

Reliance(+1.45%) also moved up and closed among Nifty 50 top-gainers.

Eicher Motors(+3.4%) moved up, one among the few auto stocks to close in the green.

ITC(+3.1%) moved up with good buying interest. Expecting continued bullishness in the stock in coming days looking at the buying action.

After Tata Steel BSL’s(+0.9%) strong results yesterday, metals found a bit of power. Tata Steel(+2.1%), JSW Steel(+2.1%), SAIL(+4%), National Aluminium(+3.4%), Jindal Steel(+2.2%) closed with power.

Banks and finance stocks saw profit booking after many days of bullishness. SBI(-3.3%), IndusInd Bank(-2.2%), Bajaj Finance(-1.7%), ICICI Bank(-1.7%) and Bajaj Finserv(-1.3%) closed as Nifty’s top-losers. 

On the other side, HDFC Bank(+1.3%) and Kotak Bank(+1.2%) closed in the green. These stocks are still far away from their 52-week highs unlike the above 5 stocks. 

IDEA fell more than 25% after Kumar Mangalam Birla stepped down as Chairman. Then it started to move up and closed just 0.8% down for the day. IndusTower(+3.8%) closed in the green. As per reports, UK’s Vodafone Plc has said that it would offer its stake to the lenders who are willing or to BSNL for free if they take over the company.

However, IDFC First Bank(-3.9%), IndusInd Bank(-2.2%) and Yes Bank(-1.9%) moved down on concerns of stressed loans given to Vi. 

Hind Petrol closed 2.6% down after reporting Q1 results last day.

CholaFin moved 4.4% up in the day after their results. The stock has moved up 13% in the last 5 trading days. Junior Aviation Minister also said Indian Airlines lost Rs 19,000 crores in FY21. 

Spicejet(-3.67%) has now defaulted on payments for four days. Indigo was also weak.

JK Paper(+6.9%), JK Tyre(+3%) and JK Lakshmi(+2.9%) moved up. Possibly buying from the promoter JK Organisation. 

Greaves Cotton(+2.9%) moved up after the proposal for the sale of the company’s land located at a village in old Mumbai for a total consideration of Rs 320 crores.

Markets Ahead

A weekly expiry in the right sense. Volatility is what we expect on Thursdays and that is exactly what we got.

Nifty’s bullishness was initially contributed by Bharti Airtel, which was up more than 6% intraday. After this, Reliance also shot up reaching more than a month highs possibly because of the same reason: Idea’s fall.

FIIs are back to aggressive buying in the last few days, reversing from their trend of selling in the equity markets. If we see a buying figure today as well, we can expect next week also to be bullish in the Indian equity market.

Nifty closed just below 16,300 and Bank Nifty below 36,000 even after the intraday spikes. These spikes and moves back down would have been amazing for scalpers in the day.

Airtel, Kotak Bank and ITC are showing some strength. These stocks need to be added to your watchlist to see if their strength continues.

The Monetary Policy Committee Meeting is happening now. Decisions will be out by tomorrow regarding the interest rates of the country. This would need to be watched as well.

How did this expiry go for you? The first expiry of the month has surely been interesting. Do you think Nifty will continue to move up or time to take a rest for the index? Let us know in the comments of the marketfeed app!

Catch you all at The Stock Market Show sharp at 6:30 PM!