Today’s Market Summarised

Markets showing bullishness till 2 PM, then seeing a sharp fall to close flat.

Nifty opened the day with flat at 15,800 and made a very volatile first candle. While trying to move up, Nifty kept finding resistance at 15,820 levels. But just after 1:30 PM, the index shot up to fresh day-highs near 15,860. And just after 2 PM, strength was lost and markets crashed down more than 120 points. Nifty ended the day at 15,763, down 15 points or 0.10%.

Bank Nifty opened at 34,660 and was weak through the morning. The index tried to move up along with Nifty and then was bearish thereafter. Still, the index saw lesser volatility than the rest of the market. Bank Nifty closed the day at 34,584, down 107 points or 0.31%.

Nifty Pharma+3.6% and Nifty Media+1.9% outperformed today. All other indices closed with net consolidation.

Asian markets closed in the red. European markets are all trading in the red as of our market close.

News Picks

SunPharma(+10%) reported Q1 consolidated net profit rose 56% to Rs 1,400 crores against a profit of Rs 894 crores last quarter. Other Pharma stocks including Cipla(+4.1%) and DivisLab(+1.2%) closed in the Nifty 50 top-gainers list.

Lupin(+1.9%) acquires Southern Cross Pharma in Australia.

Zydus Cadila(+2.4%) receives final approval from USFDA for Fulvestrant injection used in cancer treatment.

TechM(+7.2%) shot up after reporting a 42.91% growth in June quarter consolidated net profit at Rs 1,365.7 crore. HCLTech(+1.7%) also closed in Nifty’s top-gainers.

Metal stocks were mostly in the green, but saw profit booking near the top. Hindalco(-2.9%), Tata Steel(-1.6%) and JSW Steel(-1.5%) closed among the top-losers in Nifty 50.

China’s major fertiliser makers to suspend exports amid tight supplies. RCF(+4.1%), Chambal Fert(+1.7%), NFL(+3.3%) and FACT(+5.9%) gained well. UPL(-1.3%) fell ahead of its Q1 results.

Ashok Leyland(+6%) shot up in the morning after its subsidiary Switch Mobility who makes electrified commercial vehicles company announced a strategic agreement with Dana, who is a supplier of parts to companies like Ford.

Lal Path Labs(-4.4%) fell sharply after reporting a 57% QoQ increase in net profit to Rs 131 crores.

Govt approves telecom sector PLI scheme beneficial for ITI(+2.9%), Tejas Networks(+4.9%), HFCL(+4.4%) and Dixon(+1%). Other electronic manufacturing companies including Crompton(+3.3%), Voltas(+2.7%), Bajaj Electricals(+1%) and WhirlPool(+2.9%) also closed in the green.

Marico(+3.5%) shot up after reporting Q1 consolidated net profit of Rs 356 crores up 62% from last quarter.

Markets Ahead

Nifty showed strength just after noon and created fresh day-highs powered by buying across all indices. But even at this time, European markets had opened in the red. 

Once these international markets continued to fall a while later, Nifty also sharply fell from the day-highs to day-low in less than 1 hour.

Metals shares saw profit-booking after a good week. Even with today’s fall, Nifty Metal has closed more than 7.5% in the green this week. 

Nifty Auto has closed as the worst performer, down 1.5% this week. As the month has closed, the announcements of auto sales data will start coming on Monday. So we can watch out for a trend reversal in the first few days of the week!

Expecting a gap-down opening on Monday, if the global markets continue to fall. Few more results from Nifty 50 companies also remain, including that from HDFC and SBIN. As we have seen, results do cause a good impact in the stock price and the rest of the market.

How did your month of July go? Have you been tracking your returns? Otherwise, it is high time to be doing it!

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