Today’s Market Summarised

One more day of volatility in the market.

Nifty opened the day at 15,769 with a gap-up. There was not enough strength to move up, with the index moving sideways in a 40-point zone. Just after 1 PM, the index fell sharply in the afternoon with a 110-point fall. After all the volatility, Nifty managed to gain back some losses and closed at 15,692, up 3 points or 0.02%.

Bank Nifty opened at 35,357 and found good resistance at 35,400 levels. From the day-high, it went down to the day-low in just 20 minutes. The support at 35,000 was not tested and a jump back to 35,200 was seen. Bank Nifty closed at 35,198, down 127 points or 0.36%.

Nifty Realty(+3.61%) performed the best in the day. All other sectors moved without a 1% fall or gain.

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

News Picks

Cement and Realty stocks gained in the day. UltraCemCo(+2.81%), ShreeCem(+1.94%) closed as Nifty’s top gainers.

Other cement stocks JK Lakshmi Cements(+1.1%), Ramco Cements(+1.2%), ACC(+1.7%), Orient Cements(+2.%) also moved.

Realty stocks Godrej Properties(+2.2%), Prestige Estates(+2.6%), DLF(+3.5%), Sunteck,(+5%), Sobha(+5.1%), IBREALEST(+15%), Oberoi Realty(+3.5%) and Ajmera Realty(+6.3%) closed with huge gains.

Federal Bank(+4.5%) closed higher on RBI giving approval for reappointment of MD & CEO Shyam Srinivasan for 3 more years. 

Page Industries(+5.8%) closed as the top gainer in F&O stocks, with many textile-related stocks closing in the green. Other textile stocks including Raymond(+4.9%), Bombay Dyeing(+10.2%), Arvind(+8.4%), Siyaram Silk(+20% – UC) and Welspun India(+7.2%) also gained. Nykaa’s soon to be IPO at a large valuation will stir a rally in textile stocks.

Kitex once again hit 20% Upper Circuit after announcing the decision to leave Kerala. The stock is up more than 50% in the last 3 trading days.

Equitas Small Finance Bank(+7.3%), Ujjivan Small Finance Bank(+1.4%) gained slightly while Equitas Holdings and Ujjivan both closed in the 20% Upper Circuit. This was after RBI allowed small finance banks to apply for reverse mergers. 

With Bank of America saying earlier in the month that gold lenders may see revenue growth, the stocks have been gaining. Manappuram(+3.4%) and Muthoot(+1.5%) gained in the day. Both stocks are at good breakout zones, keep a watch.

SoftBank is looking for a stake in Apollo Hospital‘s Pharmacy arm. The stock is already up more than 11% in the past 1 month. Meanwhile, Aster DM Healthcare gained more than 8% today.

SSWL reported Q1 standalone net profit at Rs 51.2 crores against a loss last year. The stock closed 3.75% up.

JSW Steel board approved raising up to Rs 5,000 crores via rights issue to existing shareholders and up to Rs 7,000 crores via NCDs. The stock closed 1.89% up.

Nepal enters into a Rs 9,677 crore deal with SJVN for a hydropower project. The stock closed 2.3% up.

NMDC has cut the price of Lump Ore by Rs 200 to Rs 7,450 & fines to Rs 6,360/tonne. The stock closed 1.1% down.

SCI opens the virtual data room (VDR) today for the bidders in its privatisation. The stock shot up in the last 15 minutes and closed 4.4% up. 

EaseMyTrip(+4.4%) moved up after expecting a 100% growth this year with recovery for tourism. 

Dairy stocks including Dodla Dairy(+4.7), Hatsun(+8.1%) and Parag Milk(0.85%) gained in the day. This is because Maharashtra’s Gokul and Mother Dairy raised the prices of milk by Rs 2/litre yesterday.

Markets Ahead

Nifty even with the volatility continued net consolidation, giving a movement of just 3 points from Friday’s close.

Realty stocks rallied when Nifty consolidated, just as we discussed yesterday in our week ahead article.

If you look at when our market’s crashed, you can see it was around the same time that European markets started sharply moving down along with Dow Futures too. And even with the first, there was another round of fall.

This was probably FIIs selling in the market due to international pressures and DIIs buying in the lower ranges.

The 15,600-’630 level remains crucial for Nifty and a fall may pull it down further. Markets seem to be on a sell on rise mood, and Nifty will need to close above 15,900 to show some strength.

Bank Nifty will see support at 35,000 and 34,850 if falling. On the upper side, 35,800 will need to be broken.

Interestingly, Nifty smallcap and Midcap closed with gains in the day but this was mostly due to realty stocks. There is no absolute weakness yet in the market.

A projection of worse than usual Monsoon may also weigh in on the economy. To read how monsoon and stock market are related, click here.

Infosys results on Wednesday and Wipro’s on Thursday is being looked at by investors. You can keep an eye out as Infy can move Nifty if it becomes volatile.

How did your week start? Did you see the fall in the market afternoon? Let us know in the comments of the marketfeed app!