Today’s Market Summarised

Another close in red for Nifty, while many sectors rallied.

Nifty opened the day with a gap-down at 15,694 and moved down. By taking support at 15,630, it quickly rallied up in the morning. With this, the index traded in an increasingly consolidating zone and made a weak pattern. Nifty closed the day at 15,689, down 38 points or 0.24%.

Bank Nifty opened at 35,175 and crashed down in the first thirty minutes. It even crossed the 35,000 zone and went down till 34,850. The index of banks also had a very volatile day, with sharp up and down moves. Bank Nifty closed the day at 35,071, down 202 points or 0.57%.

Nifty Metal(+1.99%) and Nifty Realty(+2.38%) performed well in the day, even when Nifty closed in the red. All other indices saw consolidation.

Asian markets closed mixed in the day. European markets are all trading  well in the green, gaining back from yesterday’s losses.

News Picks

Bajaj Finserv(+4.2%) today hit Rs 2 lakh crore in market capitalization for the first time after its stock touched a record high in today’s trade.

Metals stocks once again featured in the top gainer’s list of Nifty 50. Tata Steel(+4.1%), JSW Steel(+1.99%), Hindalco(+1.8%) closed with good gains.

JSW Steel reported Q1 crude steel production volume jump of 65% YoY to 5.07 million tonnes. Tata Steel moved up as CARE upgraded the rating of the company. 

VEDL(+2.65%), National Aluminium(+2.5%), Jindal Steel(+2.1%), SAIL(+1.75%), JSL(+9.7%), JSL Hisar(6.4%) also gained in the day.

TCS(-1.55%) closed in the red after reporting Q1 results below expectations yesterday

Reliance Industries fell for the 4th day to reach over a 1-month low, closing 1% down.

Ashoka Buildcon(+3.5%) received a Letter of Authorization (LoA) for IRCON International project worth Rs 482 crores.

Realty stocks gained sharply in the day, continuing this week’s trend. DLF(+4.3%), Godrej Properties(+1.%), Prestige Estates(+2.5%), Sobha(+1.4%), IBREALEST(+2.5%), Brigade(+3.4%) and Sunteck(+6.8%) moved well. 

Pharma stocks also had a good day in the market. Divislab(+2%) and Cipla(+1%) closed with gains. Granules(+7.2%; is at a breakout zone) and Torrent Pharma(+2%) also moved up.

AU Small Fin Bank once again moved up 4.7% up. On Tuesday, we had talked that the stock had taken good support in the 1-Day chart.

The Government of Singapore bought a 1.74% stake in Max Financial Services last quarter. The stock closed 2.7% up. 

GHCL(+2.9%) received approval from shareholders for demerger for Inorganic Chemicals and Textile Business.

The government is considering selling the entire stake of 45% in IDBI Bank. LIC may also sell the entire stake of 49%. The stock closed 3% up. 

Markets Ahead

Realty had a great week in the market with the index moving up more than 6%. Nifty Metal also gained 2.8% this week. Compare that to Nifty Auto, which fell 2.5% because of the whole Tata Motors crash!

Anyway, even though Nifty closed slightly in the red, midcaps and smallcaps have closed with gains both today as well as this whole week. With this, I feel that we can count this as a consolidating week and not a bearish week. This also gives me confidence that next week will not be bearish.

Interestingly, San Francisco Federal Reserve President Mary Daly said that the Covid Delta variant is a threat to global recovery and India’s Finance Ministry said the economy is showing signs of a comeback from the impact of the Covid-19 2nd wave.

Either way, metals have officially gained back with Tata Steel back at its all-time highs. Expecting such a move from other peer stocks as well.

TCS results turned out to not excite the market. The Q2 updates from ICICI Bank after 2-weeks may give a huge direction to the market. For Nifty, the key support to watch out for will be 15,630, near today’s low. If that level is broken, we can expect a further fall. Otherwise, the resistance level to watch out for is the all-time high 15,915 itself.

Global markets recovering ahead of the weekend is a positive sign. Will the 16,000 level stay unbroken for next week, or do you expect a rally?

Let us know how the week went for you in the comments of the marketfeed app!