Today’s Market Summarised

Nifty dances around and closes the first day of the week with net consolidation. 

Nifty opened the day at 16,275 with a small gap-up and tried to move up. However, it could not break the level of 16,320 and from 10 AM to 2 PM fell very slowly to fresh day-lows. By closing, Nifty recovered and closed the day at 16,258, up 20 points or 0.12%.

Bank Nifty opened the day flat at 35,836 and made a very volatile first candle. The index quickly turned into bullish moved up breaking Friday’s high. But just like Nifty, the index could not sustain and moved down. Bank Nifty recovered and closed the day at 36,029, up 220 points or 0.61%.

Most sectoral indices closed with consolidation in the day. Nifty Metal fell sharply by more than 1.87% after results from SAIL.

Those Asian markets which were open today, closed mixed in the day. European markets are all trading flat in the red as of our market close.

News Picks

M&M(+2.2%) gained and closed as Nifty 50’s top-gainer after reporting results on Friday. The management’s positive commentary on the tractor segment and the all-new XUV700 also gave confidence boost to investors.

IRCTC(+6.4%) closed with good gains after giving a good breakout last day. Mumbai local trains are also set to fully open for vaccinated passengers.

Piramal Enterprises(+5.5%) moved up on the day after reporting a 7.71% rise in its consolidated net profit to Rs 533.79 crore. The stock is at fresh-highs.

Theatre chains Inox(+2.8%) and PVR(+4.9%) gained after Mumbai reported they will re-open malls and theatres.

Metals stocks had a tough day of profit booking with National Aluminum(-12.1%) and SAIL(-4.8%) falling heavily after posting good results. Coal India(-1.9%), Hindalco(-1.6%) and JSW Steel(-1.3%) were featured in the Nifty’s top-losers list. 

Rolex Rings got listed at Rs 1,250/share against the issue price at Rs 900/share. The stock closed 38% higher from its IPO price at Rs 1,170.

Tyre-makers JK Tyres(-5.5%) and Balkrishna Industries(-4.3%) fell in the day. On the other side, MRF(+1.1%) moved up after its results. 

Venky’s(-7.9%) fell sharply after reporting Q1 standalone net profit of Rs 55.1 crores, down 29% from last quarter. Rs 77.9 crores last quarter.

Future Group stocks continued their crash after the Supreme Court stood against the Reliance takeover deal. Future Retail, Future Enterprises, Future Lifestyle, Future Supply Chain closed in the 10% Lower Circuit. Future Consumer(-8.2%) also moved down

Anti-virus company Quick Heal(-17.7%) fell sharply after announcing its results.

Markets Ahead

Markets consolidated in the day, with metals showing weakness.

Equity Mutual Funds showed increased inflows, jumping more than 3-times to Rs 22,584 crores in July. This is the reason for aggressive Domestic Institutional Investors(DIIs) buying last month and holding the markets up.

Retail investors are increasingly showing their power in the market, supporting the market. This time FIIs are also turning into net buyers in July, if the trend continues we may see the market move up towards 16,500 and more.

The fall in SAIL and National Aluminium did not affect other metal stocks that much. Can watch all metal stocks for a trendline breakout from this bearish phase.

Nifty is to be watched above 16,350 for a confirmation of bullishness. Reliance did not show any strength nor weakness today, after Friday’s fall.

Bank Nifty can be watched above the 36,200 mark, which may give more confirmation for bullishness. HDFC Bank has managed to close above 1,500 after July 16th. Next, the level of 1,520-1,524 will have to be watched.

Looking for a rebound in the midcap and smallcap index in the coming days too!

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