Today’s Market Summarised

Buying continues in the market after Friday’s breakout.

NIFTY opened the day at 17,681 with a small gap-up. It was volatile till 10 AM, with a fall of 120 points and a quick recovery. After some consolidation, the market saw some last hour buying. NIFTY ended the day at 17,805, up 179 points or 1.02%.

BANK NIFTY opened the day at 35,502 and moved up and down 300 points. There was resistance found near 36,900 and the last hour buying helped it close near the day-high. Bank Nifty ended the day at 36,840, up 418 points or 1.15%.

NIFTY BANK(+1.1%), FIN NIFTY(+1.1%) and the PSU Bank(+1.2%) indices once again moved up the most. 

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

News Picks

NTPC(+5.4%), ONGC(+3.3%), Powergrid(+2.7%) and Reliance(+2.2%) closed among the top-gainers of NIFTY 50 all from the energy sector.

Other power stocks including Torrent Power(+2.7%), Tata Power(+1.3%) and IEX(+1.3%) also moved up.

SBI(+2.7%), Axis Bank(+1.8%) and Bajaj Finance(+1.7%) closed among the top-gainers of NIFTY 50. Other financial stocks including HDFC(+1.4%), Kotak Bank(+1.5%) and ICICI Bank(+1%) also moved up.

Tata Motors(-1.6%) fell and closed as the top loser in NIFTY 50 after CLSA downgraded its rating to ‘Sell’.

Pidilite Industries(+5%) gave a breakout and closed at fresh 52-week highs. 

Kitex Garments(+5.2%) moved up after total Q3 revenue posts at Rs 205 crores vs Rs 121 crores in Q2F22.

Alembic Pharma(+2.1%) moved up after receiving USFDA’s final approval for Doxycycline antibacterial drug.

Sugar stocks gave breakouts and closed in the green. Balrampur Chini(+14.1%), Eid Parry(+9.8%) and DCM Shriram(+9.1%) moved up. Triveni(+11.3%), Dhwarikesh Sugar(+20%) and others also moved.

Markets Ahead

Our markets are continuing the strong breakout after their December fall. NIFTY looks ready to hit the 18k mark soon with the momentum it is currently having.

But on the other side, weekend full lockdown and curfew is coming up in Delhi. Punjab imposed a night curfew, along with many other states. So this would need to be watched if something is announced on a national level.

Financial stocks are also strongly contributing in this round of market recovery. HDFC, HDFC Bank and SBI are 11-12% away from their all-time highs. Kotak Bank is more than 20% away from their high.

Short positions are being covered and the market is moving up. A small correction from here might be possible but looks like the market is bullish. Reliance is also in a breakout zone and might contribute hugely to NIFTY if crossing the Rs 2,500 mark.

See you at The Stock Market Show at 7 PM!