Today’s Market Summarised

A day of net consolidation in the market. Nifty closing 

Nifty opened the day at 15,830 with a gap-up and moved up. In the first one hour of trade, Nifty went up to nearly 15,900 and found resistance there. From that level, it got trapped in a bearish channel, reaching 15,800 zones. The last hour fall took Nifty even lower, making it close at 15,772, up 26 points or 0.17%.

Bank Nifty opened the day at 35,099 and tried to move up but resistance was found near the 35,300 zone. Just like Nifty, it got stuck in a bearish channel, breaking the 35,000 mark and moving lower. Bank Nifty closed the day at 34,745, down 126 points or 0.36%.

Nifty Auto(+1.35%) was the only sector closing with a movement of more than 1%

Asian markets closed mostly mixed in the day, with Japan’s Nikkei gaining 3% after yesterday’s fall. European markets are all trading flat with not much change.

News Picks

Maruti(+5.3%) closed as Nifty 50’s top gainer as leading analysts said they expect demand recovery and pent-up demand in the automotive space. Commodity prices cooling down and chip-shortage issues being slowly resolved will also help the stock. Tata Motors and Ashok Leyland also gained 1% each.

Cement stocks moved up again, with South India cement prices set to increase, ShreeCem(+3.5%) and UltraTech Cements(+1.2%) featured in the top gainers. India Cements(+2%) also moved up.

Nifty IT stocks moved up in the morning with the rupee continuing its weakness. Wipro gained 2.66% even as some others closed in the red.

Shilpa Medicare has launched another first time in the world Oral Thin Film formulation, a pediatric dose of Paracetamol Oral Thin Film. The stock shot up after the news and then cooled down to close 2% up.

HFCL had applied for Rs 12,000 crore PLI scheme for telecom gear and manufacturing gears. The stock moved 25% in two days and closed the day at 13% up.

Subex Secure and Spire Solutions’s partnership won a project to help secure systems of a leading oil and gas company in the Middle East. It is to address the steep rise in cyberattacks and associated cyber risks in the region. Subex closed 6.8% up

Bharat Biotech’s Covaxin showed 77.8% efficacy in Phase-III trials. The company has tied up with Hester Bioscience and Panacea Biotech who both moved up and closed 5% up. 

HPL Electric and Power to install 4G and 5G compatible narrow band smart meters in parts of Delhi. Such good news and the stock closed 6% up. 

Paper stocks were in high demand. JK Paper(+13%), Orient Paper(+11%), West Coast Paper(+4.3%), Star Paper(+6.5%), Astron Paper(+8%), Andhra Paper(+4%), Emami Paper(+4.9%), Sesha paper(+7%) and Malu Paper(+7%) gained sharply in the day.

GMR Infra closed 5% up after giving a great multi-year breakout yesterday. 

Avanti Feeds reported Q4 consolidated net profit at Rs 69.7 crores, down 19% YoY and down 7% compared to last quarter. Bad results of Avanti Feeds moved competitor Venkey’s to close in the 20% Upper Circuit. 

Asian Paints promoter pledged 23 lakh shares or 0.24% stake on June 21. The stock closed 1.88% down.

Markets Ahead

HDFC Bank was looking really strong in the morning. Once it crossed the 1,500 level, it was respected for many hours before finally breaking down. Reliance was respecting the 2,250 level as well. 

But just afternoon, it was clear that the day was bearish. Just like we have been discussing, the bulls and bears are not letting each other win.

With this, Nifty has once again closed with net consolidation up by just 25 points. Today’s low is a good support zone for Nifty and can be watched.

The upside for this expiry looks to be limited with 16,000 looking like a task for next week. There are high call buildups across the market.

The oil rally is still going very strong, and India’s ONGC will surely benefit. Hedging against rising petrol prices with ONGC shares! Anyway, our fuel bills have been low for the past months with lockdowns.

Hope you had a great day in the market!

Catch you all on The Stock Market Show tonight!