Today’s Market Summarised

A day of volatile consolidation across the market with Nifty closing flat.

Nifty opened the day at 15,221 with a small gap-up and tried to move up. But an immediate fall took Nifty down more than 100 points. From here, the volatile day continued with up and down movements through the day. Nifty even tried to break the day-high near 3 pm but fell once again. Nifty closed the day flat at 15,197, up 22 points or 0.15%.

Bank Nifty opened at 34,935 with a 300 point gap-up, and tried to stay above 35,000. A 500 point fall took the index back to Friday’s levels. Mostly Bank Nifty’s chart looked similar to that of Nifty’s including the last hour jump from all private banks. This time, resistance was found near 35,200 and Bank Nifty fell to close at 34,935, up 336 points or 0.97%.

Only Nifty Metal(- 0.60%) and Nifty FMCG(- 0.34%) closed in the red. Nifty PSU Bank(+2.1%) gained the most followed by Nifty Realty(+ 1.36%) and Nifty Media(+1.2%). All other sectors consolidated.

Major Asian markets closed flat in the day. All European markets are trading slightly in the green at the time of our market close.

News Picks

Cadila Healthcare launched the Ujvira drug, which it called as a breakthrough in breast cancer treatment. The stock shot up to 4% high in the morning session and later cooled down to close 1% up.

The global economy is recovering as the number of Covid cases falls slowly. Oil stocks like IOC(up 5%), BPCL(up 2.56%), Hind Petro(up 2.99%) gained in the day expecting relaxation in state restrictions will lead to more Petrol consumption.

Container Corporation of India said it has completed almost all one-off things before the strategic divestment. Also, the company said it is confident of the land license fee issue being resolved with the government. The stock gained 8% in the day.

Canara Bank is set to consider fundraising via equity route on May 28. The stock was up 5% in the morning but fell after this news came out. Canara Bank closed the day nearly 1% up.

Ramco Cements reported Q4 standalone net profit reported as Rs 214 crores, up 46% YoY and 6% up compared to last quarter. The stock fell 1.82% in the day.

India Cements fell sharply from day-highs to close 3.5% down after posting better than expected results. Q4 net profit of Rs 71.6 crores, 15% QoQ. Even after the fall, the stock is up nearly 17% in May.

ShreeCements and UltraCemCo also featured among the top-losers of Nifty 50 in the day.

M&M closed more than 1% down as the company said it does not plan to launch the Thar in Australia. This followed a court case by Jeep, saying that the Thar looks too similar to the Jeep Wrangler, which in my opinion is 100% true.

Russian Direct Investment Fund and Panacea Biotec launch production of Sputnik-V vaccine against Covid-19 in India. Panacea shares went to 5% upper circuit after the announcement.

Natco Pharma opened at 20% Upper Circuit and then the selloff dragged the stock down to close just 9% up. This was after the company received approval for its generic Lenalidomide capsules from the US health regulator.

Hero Motocorp said it will resume production at all manufacturing plants in India from today after shutting operations due to the lockdowns in the country. The stock was up 2.5% in the morning session but fell to close 0.5% up.

SBI opened with a 4% gap-up in the day, after posting their results on Friday. The stock closed just above 2% up in the day. Public Sector Punjab National Bank is up 4.6% in the day.

JSW Steel closed 2.4% down in the day after posting their results. The stock actually gained from being nearly 4% down in the day. Tata Steel was also down 1.9% in the day.

Power Grid Corporation has approved investments totalling Rs 2,202 crore for various power transmission projects. The stock closed 1% up.

Few days after Pidilite Industries touched Rs 1 lakh crore market cap, it again rallied nearly 4% to fresh all-time highs.

Realty stocks like DLF(+3%), GodrejProp(+3%) , Sobha (+5%) moved higher on the expectation of lockdown rules easing soon.

Markets Ahead

Nifty closed flat for the day but was very volatile. What was interesting to see was the last hour volatility in Bank Nifty. The index gained 400 points then lost the gains as quickly. IndusInd Bank was 1% down and Axis Bank is 1.4% up, usually 2 stocks that move together.

Overall a really boring day for the market, except some stock specific moves here and there it was net consolidation in most indices.

Anyway, the week has started off well. From the US, there are public rumours that the GameStop short-squeeze Round 2 might happen again soon and lead to a series of market crashes like last time. Again, this is just a rumour.

Stocks that are likely to benefit from reduced restrictions, like DeltaCorp(up 8%), Realty stocks, and some hotel stocks are trying to move up.

Speaking of Hotel stocks, ITC showed strength near the close and closed 1% up. Ahead of the company’s results, expecting more strength in the stock.

Catch you all on The Stock Market Show tonight!