Today’s Market Summarised

Nifty opened the day with a gap-down and formed multiple red candles, as was expected. But around 9.40 am, with a quick turn around from banks, the index started moving up. It soon broke the opening range and went up to create the day’s high near 12,730. After this, Nifty corrected a bit then closed at 12,719.95, up 29.15 points or 0.23%.

Nifty created a green candle in its 1-day chart but failed to cross yesterday’s high. With its second back-to-back weekly gains, Nifty has had a pretty eventful 5 days. Fresh strong all-time highs were marked by the index, and today’s close is only 50 points away from it.

Bank Nifty opened the day with a gap-down at 28,112 and strongly went down. It touched a day-low near 27,700, took support and then started its upward journey. The index of Banks pulled Nifty 50 up through the rest of the day and closed near the day-high at 28,465.70, up 186.90 points 0.66%.

Metals outperformed every other index today. In fact, it was the only index to give a steady movement today. Nifty Realty also performed with Indiabulls Real Estate continuing.

Most Asian markets closed in red today. Major European markets are slowly coming back up from below.

News Picks

Shares of Apollo Hospitals closed at Rs 2,265.80, up 7.36% today after yesterday’s fall. It was today’s top gainer from the F&O activated stocks, after being the top loser yesterday.

Eicher Motors shares created fresh 52-week highs even after mixed results from the company yesterday. The company reported a 40% year-on-year(YoY) fall in net profits for the 2nd quarter of this financial year. However, positive commentary from the management indicated continued growth in sales to pre-covid levels. Share prices closed at Rs 2,514.60, up 6.97%. It was the top gaining stock in Nifty 50 today.

Indiabulls Real Estate continued its rally after Rakesh Jhunjhunwala’s RARE Enterprises bought a 1.1% stake in the company. Yesterday, the stock price had gone up by almost 14%. Today share prices closed at Rs 60.20, up 9.26%. Read about Rakesh Jhunjhunwala’s portfolio here. Most real estate stocks rallied along with it.

Sun TV shares closed at Rs 424.80, down 3.90% after the company announced a 5.6% YoY fall in net profits to Rs 346 crores for Q2. Subscription revenues increased by 14%. The company is also investing heavily to build its content for OTT platforms (online subscription services).

ICICI Bank went up to keep Bank Nifty in green today, even as HDFC Bank pulled the index down. Shares closed at Rs 485.55, up 1.86%. HDFC Bank fell almost 1% to Rs 1,358 after the company was flagged after foreign investment reached almost its limit.

Shares of Indiabulls Housing Finance went up 6.52% to close at Rs 182.20, along with the jump in Indiabulls Real Estate and government’s push for housing projects.

Jubilant Foodworks jumped in trade after the company reported Q2 standalone net profit stood at Rs 76.91 crores, slightly up against crore against Rs 75.92 crore in the corresponding quarter a year ago. This result was better than street estimates. The closure of the company’s 105 stores in July-September quarter shows consolidation of operations. Share prices closed at Rs 2,482, up 6.10%.

Markets Ahead

The unbelievable rally of real estate, cements and paints for the past many week, and today’s consolidation is very surprising. Industry insiders probably knew the Atmanirbar 3.0 package announced yesterday was probably coming. But glad that these rallies were caught by us in the previous weeks. We can still look into these sectors for long-term recovery and growth.

We can expect good news coming in soon, with multiple vaccines across the world showing good results. In fact, 4 crore doses of AstraZeneca’s vaccine has been manufactured by Serum Institute. Head of AIIMS has also came out and said that herd immunity in India might come before the vaccine does, which sounds good. Hoping the economic recovery picks up pace.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.