Today’s Market Summarised

Nifty bounces back slightly from last week’s fall and closes in the green.

Nifty opened the day with a gap-up at 17,616 and moved up. By 11 AM, the index touched an intraday high of 17,750 but could not continue the rally. A small fall was seen and the index traded for the rest of the day between 17,660 and 17,720. Nifty closed the day at 17,691, up 159 points or 0.91%.

Bank Nifty opened the day at 37,400 with a gap-up and slowly moved up. A pattern similar to Nifty was seen and the index mostly consolidated in the afternoon. Bank Nifty closed the day at 37,579, up 354 points or 0.95%.

Nifty PSU Bank(+2.1%), Nifty Metal(+3%), Nifty Realty(+2.1%) and Nifty Media(+2.6%) all moved more than 2% up. All sectoral indices closed in the green.

All Asian markets closed mixed in the day. European markets are all trading in the green currently.

News Picks

Divislab(+8%) closed as Nifty’s top-gainer after the drug Molnupiravir was found to reduce the risk of hospitalisation or death by approximately 50% by American Pharma company Merck. Divislab is Merck’s Authorized manufacturer for India. 

Metal stocks continued their slow recovery with Hindalco(+4.4%) and Tata Steel(+2%) closing among the top-gainers of Nifty 50. Other stocks including SAIL(+4.7%), Jindal Steel(+4.1%), Vedanta(+4.3%) and NMDC(+3.3%) closed in the green.

Graphite(+3.2%) and HEG(+11.8%) also closed in the green.

There are news running around that National Aluminium(+10%) and Hindustan Copper(+10.4%) are candidates for privatisation.

Cummins India(-2.7%) continued its bearishness on concerns of the draft bill seeking to reduce diesel generator use.

IRCTC(+5.6%) continued to rally and moved up to all-time highs above Rs 4,000. The record date is 29 October.

Quick Heal(+1.6%) introduces a new version of its flagship security products for consumers.

Reliance(+1.2%) touched all-time highs and closed in the green.

Piramal Capital completed its reverse merger of DHFL and PEL(+4.9%) showed  bullishness over the whole day.

Most IT stocks from Nifty IT closed in the green; can be seen as a pre-result rally for the index. OFSS(+2.4%), Mphasis(+2%) and TechM(+2%) closed with most gains.

Sugar stocks BalramChini(+7.2%), Dalmia Sugar(+8.5%), Shree Renuka(+5-UC), Dhampur Sugar(+5%-UC),EidParry(+1.7%), Triveni Engineering(+7.4%) rallied in the day.

Bajaj Twins – Bajaj Finance(+2.2%) and Bajaj Finserv(+3.6%) closed in the green 

Tata Motors(+2.6%) closed in the green after unveiling their new micro-SUV called Punch, the stock’s highest level since early July. M&M(+1.5%) hit its highest level since May 28th.

Hotel stocks and theatre stocks closed in the green with more relaxations coming and services industry re-opening. Indian Hotel(+2%), EIHotel(+1.9%), Chalet Hotel(+3.9%). PVR(+2.9%) and Inox(+5.8%) closed with gains.

Airtel(+0.8%) and Ericsson are expected to do a joint briefing tomorrow. Market participants expect it to be about the 5G trial.

UPL(+1.3%) has been threatened with a criminal probe after the South African pollution scandal. Stock closed among the top-losers of Nifty. The company also said that the China shutdown would impact agrochemical and raw material prices.

Paras defence(+5%-UC) continued to be at upper circuit after listing

Indus Tower(-3.4%) moved down after news that Private Equity firm KKR is planning to sell the entire 4.85% stake in the company.

Power outages in China are expected to impact chemical output & it led to a sharp rise in prices of basic chemicals in India. Toluene price went up 3%, Phenol 7%, Methanol 29%, Acetone 6% in the last 2 wks. Cos with exposure are RIL(+1.2%), Deepak Nitrite(+8.8%), GNFC(+5.5%), Deepak Fert(+1%) and others moved up.

Markets Ahead

Nifty closed in the green today after many days of fall. The 17,500 support was not tested and bulls took up the index today.

After the power sector rally, the next rally is now being seen in commodities with high production in China. Because of the power shortage, production in China will decrease and prices will move up. Metals and chemical stocks are now moving up, you can watch for similar moves in other sectors linked to China.

Pharma and IT stocks are silently moving up, with just Cipla being the exception today. We had also talked about Adani stocks last week and they are slowly moving up. Today, Adani Ports(+1.2%), Adani Ent(+4.6%), Adani Trans(+3.6%), Adani Power(+5%), Adani Green(+2.1%) moved up.

Keep a watch on metal and pharma stocks. Also IT stocks may bounce from their current supports ahead of Q2 results being published. 

Let us know in the comments section of the marketfeed app which sectors again will benefit from the China power shortage issue!