Today’s Market Summarised

Nifty regains after a gap-down opening in the day.

Nifty opened at 17,658 with a gap-down and fell slightly. The index traded in an 80 point zone for nearly 4 hours. With a breakout across all indices, Nifty moved up but could not sustain the rally. With a fall near the end, Nifty closed day at 17,711, down 37 points or 0.21%.

Bank Nifty opened the day at 37,642 and crashed down nearly 280 points. From here, the index bounced back to test 37,900 near 3 PM.  With a fall near closing time, Bank Nifty closed the day at 37,743, down 202 points or 0.53%.

Only Nifty PSU Bank(+2.7%), Nifty Metal(+2.3%), Nifty Pharma(+1.6%) and Nifty Realty(+1.1%) closed in the green. Most other indices closed with consolidation.

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

News Picks

Energy stocks once again rocked in the day continuing yesterday’s bullishness. NTPC(+6.6%), Coal India(+6.4%), PowerGrid(+6%), IOC(+3.6%) and ONGC(+1.7%) closed among Nifty 50’s top-gainers.

There is news that China is considering raising electricity rates for industrial customers in order to combat supply shortages. 52-week highs were hit by multiple power companies including Coal India(+6.3%), Tata Power(+8.2%), NTPC(+6.5%), Power Grid(+6%), PFC(+0.8%), OIL(+9%) and Torrent Power(+2.6%).

Money continued to flow into the pharma sector with SunPharma(+4.6%) closing in the top-gainers. Cipla(+1.7%) and Dr Reddy(+1%) also closed in the green.

Metal stocks closed with strength in the day. Hindalco(+3.3%) and JSW Steel(+2.8%) closed with strength in Nifty 50. National Aluminium(+6%), Jindal Steel(+5.8%), SAIL(+3.6%) and MOIL(+2.5%) also showed bullishness. 

SAIL(+3.6%) and NBCC(+2.6%) moved up with news of privatisation by the government.

PSU Banks closed in the green with the Piramal Group completing DHFL takeover. SBI(+3.3%), Bank of India(+3.8%) are the top beneficiaries from this deal and will receive Rs 7,267 crores and Rs 4,125 crore respectively. Union Bank of India(+4%) also moved up.

BLS International(+2.8%) wins a contract for Italy visa processing services in Russia.

Financial stocks closed among the top-losers of Nifty 50. HDFC(-2%), HDFC Bank(-1.3%) and ICICI Bank(-1%) closed in the red.

HDFC AMC(-5.5%) fell after Standard Life sold shares in a block deal at opening time. Max Health(-3.9%) also saw a gap-down opening with a block deal.

Info Edge(-4.6%), Metropolis(-3.2%), Godrej Cons(-2.9%), IRCTC(-2.4%), BEL(-2.4%) are top midcap losers.

Markets Ahead

As we discussed yesterday, energy stocks have been continuing their rally. IEX also gained to reach all-time highs. Click here to learn more about IEX. We can expect a similar bullishness in Reliance and Adani stocks soon.

Today’s rally in Bank Nifty was mostly sponsored by SBI with the news discussed above. No other stock contributed to the index significantly in the generally bearish day.

The levels of 17,500 and 17,800 were not tested in the day. We can expect a move tomorrow if these levels are broken, otherwise, it will just be consolidation with volatility. 

Tomorrow is the monthly expiry, so we can expect high movements in the indices including Bank Nifty. Nifty IT gained sharply towards the end with power in Infosys and TCS after their morning fall. This bullishness could be continued tomorrow.

Looking at how the European markets are performing now, and with Dow Jones Futures in the green, we can expect a gap-up opening tomorrow in Nifty. Keep a watch out for Kotak Bank, Reliance and IT stocks.

What do you think? Will the slow correction continue? Or are we just seeing consolidation near the top? Let us know how your day went in the comments section of the marketfeed app!