Today’s Market Summarised

Markets close slightly in the green and close at the highest point since 14th October.

NIFTY opened the day at 18,246 and moved with volatility. After the initial jump from and fall, the index mostly stayed in the green for the week. NIFTY ended the day at 18,308, up 52 points or 0.29%.

BANK NIFTY opened the day at 38,269 and shot up and was volatile. However, the index could not sustain above the 38,500 mark and fell back down. Bank Nifty ended the day at 38,216, down 154 points or 0.4%.

NIFTY Auto (+2%) and Realty (+1.2%) gave breakouts in the day. Most other indices consolidated with Pharma seeing some selling pressure.

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

News Picks

HeroMotoCorp (-5.1%) closed with a big gain as NIFTY 50’s top-gainer. The stock moved after the company injected more funds into subsidiary Ather Energy and plans to unveil an EV in March.

Other auto stocks also saw buying led by Tata Motors (+2.9%), Maruti (+2.2%), M&M (+2.2%) and more closing in the green.

Construction stocks including Grasim (+3.3%), UltraCemCo (+2.7%), JSW Steel (+2.4%) and Shree Cements (+1.7%) closed with gains from NIFTY 50. UltraTech Cement reported Q3 results with a net profit of Rs 1,710 crores, up 14% YoY and beating estimates. 

Realty stocks including Sobha (+6.1%), Brigade (+4.6%), Lodha (+3.2%) and DLF (+1.5%) also moved up.

HCL Tech (+5.8%) fell sharply after announcing their Q3 results during the weekend due to tougher margins. On a similar line, HDFC Bank (+1.5%) also saw selling even after their in-line results.

Fertiliser stocks mostly closed in the green after rumours of Rs 1.4 lakh crore in fertilizer subsidy in the budget. DeepakFert (+4.1%), Madras Fertilizers (+10.8%), FACT (+3.7%), NFL (+3.1%) moved up.

Bhansali Engineering Polymers (-9%) crashed down intraday after reporting a Q3 net profit of Rs 75.7 crores, down 44% YoY.

Pharma stocks saw selling pressure in the day. Cipla (-1.2%), Granules (-7.4%), LAURUS LABS (-2.5%) and STAR (-2.4%) closed in the red from NIFTY Pharma.

Markets Ahead

Results of HDFC Bank kept the markets calm even after the good results. It still managed to pull down the index by more than 20 points.

BANK NIFTY closed between the highest Open Interest levels of 38,000 and 38,500. The index is seeing consolidation in this tight range. A move of more than 200 points over and above these zones can trigger bigger moves.

Keep an eye out for the options data in NIFTY and BANK NIFTY. Our expectation for the current week based on present data is that there would be consolidation with midcap and smallcap stocks moving up.

TCS hit an all-time high and is expected to slowly move up more after the announcement of the Rs 4,500/share buyback. Maruti is also near a 3-year high zone and might give good moves if breaking out.

Have you gotten into the Auto stocks rally? Let us know in the comments section of the marketfeed app!

See you on The Stock Market Show at 7 PM!