Today’s Market Summarised

Nifty once again had a general day of consolidation even with multiple sectors giving good movements.

Nifty opened the day at 14,884 and fell to 14,800 in the 10 minutes of market opening. It tried to move back up but just mostly consolidated over the day. Even the fall after 1 pm did not have much power. Nifty closed the day at 14,834, down 38 points or 0.26%.

Bank Nifty was bearish in the day, falling nearly 300 points after opening at 32,637. With some power mainly from SBI, the index tried to moved up but could not even reach 33,000 level. Bank Nifty saw consolidation towards the end to close at 32,448, down 334 points or 1.02%.

Nifty Pharma(up 3.04%) was the sector which moved most today, with Nifty PSU Bank also gaining more than 2%. The only other sector to move more than 1% was Nifty Bank(down 1.02%).

Asian markets closed mixed in the day. European markets are mostly consolidating in the day.

News Picks

NITI Aayog and the Finance Ministry may meet on April 14th to discuss the privatization of IOB and Bank Of Maharashtra. Bank Of Maharashtra stock is up by 11%, while IOB gained 12%.

With Chinese Auto sales booming, March Retail passenger vehicles went up 66.4% compared to last year. Tata Motors who has a strong presence in the country with JLR may benefit. Shares closed more than 1% up in a bearish day for auto stocks.

Alkem Lab started commercial production at its Chakan manufacturing facility. Stock is up by 5.2% in a day where other Pharma stocks also did well.

Shares of Angel Broking gained 1.5% after data came out that Goldman Sachs India acquired a 1.59% stake in Angel Broking in the January to March quarter.

Zensar Technologies announced a strategic partnership with US-based Claimatic to offer insurers digital solutions. Stock closed up by 2.15%.

The government asked major pharma companies to boost production of Remdesvir to full capacity by the end of the month. These companies include Cipla(up 4.88%), Cadila(up 9.29%), Sun Pharma(up 3.66%) and Dr Reddy(up 1.52%). This is the main reason for the pharma rally today.

Nifty FMCG index closed up with Hindustan Unilever gaining 2.74% in the day. The stock is at an 11-month high, breaking good consolidation.

The rupee weakening to near Rs 75/dollar rate has also pushed up IT and Pharma stocks in the day. These companies will benefit as they are net exporters and earn mostly in dollars.

Chemical shares generally saw a sell-off in the market, with UPL featuring in the top-losers list.

Markets Ahead

Nifty broke a 3-day green streak to end the week with losses. Most indices saw consolidation with volatility in the day. Nifty Metals closed the week with a 6.6% jump, followed by Nifty IT(up 5.3%) and Nifty Pharma(up 5%).

In a week where Nifty closed in the red, Nifty Midcap and Small cap closed 1-3% up. Was a spectacular week for the smaller stocks in the market.

We had discussed how Nifty could fall yesterday. With Bank Nifty, especially Private Banks continuing to remain weak, the index was pulled down.

The German Health Minister has said that they would need a lockdown to break the current wave. Hopefully, India will not have to go that far. As for Covid news, Amit Shah has said that there is currently no vaccine shortage in India. Johnson & Johnson is also ready to start its vaccine trials in India, with the highlight being that it needs only one shot.

If the global markets do not show some positivity, we might see the weakness in financial stocks pulling down Nifty even more. But the rallies like what happened in Metals yesterday and in Pharma today will keep on happening. Your job is to just identify these.

Also, bond yields in India and the US have fallen. But this did not seem to help the market in any way. 

Over the weekend let’s open some charts and find out good opportunities. There are surely many in the market, as with the rally of sugar stocks last week. So have a cup of tea and chill, and also remember to enjoy your weekend.

Catch you all on The Stock Market Show tonight!