Today’s Market Summarised

Nifty rallying up the day after the weekly expiry to fresh highs, as investors cheer on.

Nifty opened the day at all-time highs of 16,391 with a small gap-up and was bullish. First, 16,450 was taken as resistance then 16,500. Nifty surprised market participants and moved ahead to fresh highs. At market close, Nifty ended the day at 16,529, up 165 points or 1.01%.

Bank Nifty opened the day at 36,034 and was not bullish like Nifty. The index consolidated through the day, and tried to move up and cross 36,200 near the end. This was not sustained and Bank Nifty closed the day at 36,169, up 121 points or 0.65%.

Nifty IT(+1.82%) once again showed the most strength and closed higher. Nifty Realty and Nifty Media moved down.

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

News Picks

Tata stocks stayed in bright green with Tata Consumer(+4.2%) and TCS(+3.3%) closing as Nifty 50’s top-gainers. Both stocks hit fresh 52-week highs in the day.

Tata Steel(+1.8%) also gained in the day after posting their results yesterday.

HCLTech(+2%) and Wipro(+1.5%) joined TCS(+3.3%) in the top-gainers list. Infy(+1.3%) also closed with good gains.

Reliance(+1.6%) is breaking out with good volumes and gave a good boost to Nifty in the day.

Eicher Motors(-2.6%) closed as top-loser for the second day, after posting their results yesterday. Other Nifty Auto stocks including Ashok Leyland(-2.4%) and Mothersumi(-1%) closed in the red.

Ashok Leyland gained back from its morning fall after PM Narendra Modi tweeted the launch of the Vehicle Scrappage Policy today is a significant milestone in India’s development journey as it will remove unfit and polluting vehicles. 

Auropharma(-7.8%) shares fell heavily after the Q1 results of the company failed to impress investors. 

Other pharma stocks moved up with Wockhardt Pharma(+4.7%) entering into an agreement with Enso Healthcare. It is a company in Dubai for the manufacture and supply of the Sputnik V / Sputnik Light vaccine.

Cadila(+2.6%) received final approval from USFDA for Mesalamine extended-release capsules, used to treat a condition that causes swelling and sores in the lining of the large intestine and rectum.

L&T(+2.7%) moved up after winning an order for Titanium-Clad Oxidation Reactor from Technip Energies.

Bharti Airtel(+2.2%) moved up after receiving Rs 1,000 crores from Jio for spectrum.

Gujarat Fluorochem closed higher by 2.3% after posting Q1 consolidated net profit at Rs 154 crores, up 20% from last quarter.

Star Cement(+6.7%) approved buyback at Rs 150/share. The current market price of the stock is Rs 115.

Puravankara(+9.9%) rallied after posting Q1 net profit of Rs 154 crores more than doubling profit Rs 87.5 crores from last quarter.

Markets Ahead

Nifty broke out in the day and touched 16,500. Midcaps and smallcaps moved down after funds of Foreign Institutional Investors(FIIs) moved in to the big stocks.

TCS and Infosys hitting fresh all-time high market capitalisations have shown that investors still have faith in the Indian IT and tech space. A lot more is expected from the sector in the long-run. Nifty IT has moved up more than 4% this week.

Nifty Pharma lost strength once again and moved down more than 3% in the week.

Two major things happened yesterday; a government report showed retail inflation for July increased at the slowest pace since May and also the Finance Minister Nirmala Sitharaman again said that central banks’ will be prioritising growth of the economy.

Results season in Nifty 50 is coming to an end with mixed reactions. In this quarter, 47 out of 50 companies have already posted results. Only 18 out of them have beaten analysts expectations.

Still, with the economy unlocking after the second wave of Covid-19 and support from central banks continuing, the markets are moving to fresh highs.

How did this week go for you? How is your portfolio looking in a week where Nifty 50 once again hit fresh all-time highs? Let us know in the comments of the marketfeed app.

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