Today’s Market Summarised

Nifty falls after opening at fresh all-time high levels. Closes nearly 

Nifty opened the day at 15,911 with a gap-up and started falling. Even though it tried to move back many times, an even larger fall would pull the index down again. Towards the end, 15,800 was broken but Nifty managed to gain back. Nifty closed the day at 15,814, down 45 points or 0.29%. 

Bank Nifty opened at 35,439 and was in a mood to consolidate. For most of the day, the index moved in a 200 point zone with 35,240 as support and 35,440 as resistance. Bank Nifty closed flat at 35,359, down 5 points or 0.01%.

Nifty PSU Bank(+2.3%) outperformed in the day. Nifty Metal and Pharma gained 1.3% each. All other sectors consolidated.

Most Asian markets closed mixed in the day. European markets are all trading slightly in the red.

News Picks

Dr Reddy(+1.8%) closed as Nifty 50’s top gainer after announcing the commercial launch of 2-Deoxy-D-Glucose (2-DG) used to treat Covid patients.

Other Pharma stocks including CadilaHC(3%), whose vaccine Zycov is ready for launch closed with gains. AuroPharma(+1.84%) and Biocon(+1.8%) also moved up.

Metal stocks continued bullishness from last day with Hindalco(+1.70%) and Tata Steel(+1.6%) closing in the top-gainers list. National Aluminium(+9%) gained sharply ahead of announcing results today.

Other metal stocks including JindalStel(+3.2%), NMDC(+2.5%), VEDL(+2.12%) closed with gains. Base metal prices, including that of Aluminium, have been trying to move up.

IGL rallied 4% after announcing its Q4 results yesterday. Also as we discussed in the Top International News article on Friday, natural gas prices are rallying. GujGas closed 5.4% up while MGL closed 2.3% up.

ISGEC Heavy shares jumped 20% up after reporting Q4 profits at Rs 63.42, 4-fold increase YoY. Revenue was up 4.5% YoY to Rs 1,520 crores.

Escorts(+1.7%) gained after announcing price hike for tractors from July 1st.

IOB and Central Bank gained 6% each after more news of privatisation.

Shares of Thyrocare dropped nearly 10% after PharmEasy acquired a 66.1% stake in the company at a discounted price. They will also make an open offer for another 26% in the company.

Power Mech Projects, a smallcap with under Rs 1,000 crore market cap, has gotten an order from Coal India worth Rs 9,300 crores. The stock closed 6% up.

With crude oil prices steady at near $74/barrel, shares of OIL gained 3.5% with ONGC gaining 1.2%.

Markets Ahead

Nifty has closed in the red but still managed to stay above the 15,800 zone. HDFC Bank, Reliance and even TCS closed without any strength.

Nifty would go on to make further highs only if it can sustain above the 15,890-15,910 zone. Do keep a watch out for these levels.

With the Finance Minister announcing more support for different sectors of the economy, there is positiveness running around. Tourism, farming, public health are the major sectors receiving aid. Stocks in this sector can be watched.

The Banking and Financial sector will also see reduced stress with the government promising good support to the industry. Expecting a bullish move from the index tomorrow after today’s consolidation. Will be watching out for today’s high to be broken tomorrow, or 35,000 as support in Bank Nifty.

Catch you all on The Stock Market Show tonight!