Today’s Market Summarised

A positive end to a highly volatile day. Markets close with gains even after Mumbai lockdown and mid-week holiday broke Tuesday’s bullish momentum.

Nifty opened the day at 14,530 and tried to move up in the first 15 minutes. But at 9:30 pm, the market started falling heavily, which saw the index falling 200 points in 2 hours. What happened after this was very interesting. All indices reversed along with Nifty and it moved up and up. After crossing the opening range, Nifty closed near the day high at 14,581, up 76 points or 0.53%. Even with all that volatility, it was just 50 points away from day’s open.

Bank Nifty was generally more bullish in the day, outperforming Nifty. After opening with a gap-up at 31,932, even the first candle was very volatile. It fell nearly 700 points to the day-low in 2 hours and then reversed with high strength. With this strength, Bank Nifty closed near the day-high at 32,112, up by 341 points or 1.07%.

Nifty Pharma, Nifty Metal, Nifty Bank gained more than 1% in the day. Nifty PSU Bank and Nifty Auto fell more than 1%. Nifty PSU Bank which fell nearly 10% yesterday was today’s top-gainer, going up nearly 4.5%. Nifty IT saw heavy profit booking, falling more than 3% in the day.

Asian markets closed flat but mostly in the green today. European markets are trading with small gains.Asian markets closed in the green today. European markets are consolidating.

News Picks

Delhi Govt announced a weekend lockdown but avoided a full lockdown. Malls, gyms, spas and auditoriums will be closed but cinema halls will be able to function at 30% capacity. PVR and Inox fell 2.5% and 3.5% respectively over the day.

Cadila HealthCare said it plans to double the production of anti-viral drug Remdesivir by May, to produce 20 lakh units per month. Stock closed up 3% for the day.

Tata Motors & Bajaj Auto said that all the Maharashtra plants are operational in compliance with government guidelines. Both stocks gained from the day’s low to close nearly flat.

After the Q4 results of Infosys missed estimates, the stock opened with a nearly 4% gap-down. Last day it was TCS who fell sharply. Infy gained back some losses but closed down by 2.4%.

HDFC Bank said it is planning to raise up to Rs 50,000 crore during the next 12 months through the issuance of bonds. Even when Bank Nifty fell sharply in the morning, HDFC Bank was mostly strong. It closed with more than 2.4% gains.

Metropolis Healthcare completed the acquisition of Tamil Nadu-based Dr Ganesan’s Hitech Diagnostic Centre Private Limited. Shares of Metropolis Healthcare closed up by 2.2%.

Share of Cipla and TCS gained sharply to get into the top-gainers list today. Both of them were among the top-losers on Tuesday.

ONGC invited buyers for gas from the KG basin, sees it as key to increase domestic production. Share prices closed up nearly 3% in the day.

Eicher Motors fell nearly 3% after brokerages reduced the target on the stock. If you have done your own research, then these dips can be seen as opportunities for buying.

India’s March Wholesale Price Index inflation came out to be 7.39% against an estimate of 5.90%. This does not look good for the economy, but RBI has already said that it would not be increasing rates soon.

The Health Ministry today opened a pathway for foreign COVID-19 vaccines to be used in India. This is expected to speed up India’s vaccination process.

Competition Commission approved the acquisition of DHFL by Piramal Capital & Housing Finance.

Markets Ahead

Volatility trapped many traders in the market today. Such was the movement. 

But now I feel that the markets have factored in the restrictions in Maharashtra well. All that was added in the first 2 hours of the market. In fact, markets went up after a small dip, even when the Delhi CM today announced a weekend lockdown there. 

My only concern is that the vaccination drive in India is yet to catch up to that of other developed nations. The ground reality in many states is getting worse by the day. But hoping that the increased production of anti-viral drugs will be able to lower the rates of severe cases.

Nifty will keep moving on, even with all such roadblocks. 14,650 and 14,800 will be good levels going up. Moving down, we know that 14,500 will act as good support along with 14,370 and 14,250. 

Bank Nifty closing above 32,000 is also a sign of strength. This level could once again act as a support along with 31,000 down below. 

Finance Minister Nirmala Sitharaman has also said that there will not be a nationwide lockdown. Nifty looks like it will not be affected by any further lockdown news like that of Maharashtra.

Catch you all on The Stock Market Show tonight!