Today’s Market Summarised

Nifty’s bulls showing their strength in the day lead by financials and metals.

Nifty opened the day flat at 15,823 and was very volatile. It consolidated in a 60-point zone for most of the day. In the afternoon, the index crossed 15,850 and moved up. Nifty ended the day at a high with 15,879, up 62 points or 0.39%.

Bank Nifty opened at 35,553 and was given some power by HDFC Bank. Slowly over the day, it went up to once again touch the resistance at 35,800 but could not cross it. Bank Nifty closed the day at 35,771, up 192 points or 0.54%.

Nifty Metal(+2.2%) and Nifty Realty(+1.95%) showed strength in the day with all other indices mostly consolidating.

Asian markets closed mostly in the red. But, European markets are all trading slightly in the green now.

News Picks

With brokerages once again turning bullish on metal stocks and good results once again expected for Q2, 3 out of top 5 gainers in Nifty 50 were from the sector. Tata Steel(+4.4%), JSW Steel(+2.56%) and Hindalco(+2.15%) closed with gains.

Other metal stocks including Nationalum(+6.1%), SAIL(+4%) and JindalSteel(2.5%) also gained sharply.

Jindal Steel also reported 20% YoY increase in Q1 Steel Production to 2.01million tonnes, with sales increasing by 3% to 1.61 million tonnes(YoY) out of which 34% was exported.

Also, China completed the release of 1,00,000 tonnes of Copper, Aluminium and Zinc from state reserves in an auction and saw high demand. This has shown that metals might have more way to go even with China trying to bring down prices.

Bharat Forge closed 5% up after Goldman Sachs started coverage on the stock with a target of Rs 883/share.

Sources say that the Department of Public Enterprises will be merged with the Finance Ministry. With this, almost 36 companies including BHEL will come under the ministry. BHEL closed 5% up.

ISGEC Heavy JV bagged orders for critical reactors for the US. The stock closed 1.8% up.

Bajaj Consumer Care: Goldman Sachs India raises its stake by 1.04% in Q1. The stock closed 1.5% up. 

Tata Motors will have an investor call at 5:30 pm today, discussing Q1 details. The stock recovered 3.5% from the day low and closed flat.

Paper stocks PudumJee Paper and Emami Paper, Malu Paper, Genus Paper closed in the 20% Upper Circuit. Other paper stocks JK Paper(+5%), Star Paper(+11.5%), Astron Paper(+6.9%), Orient Paper(+9.8%), Andhra Paper(+4.5%), Ruchira Paper(+10.9%), Kuantum Paper(+9.4%) and Sesha Paper(+7.4%)  traded with gains. You can read all about the industry here.

Matrimony has approved the 100% stake acquisition of  Boatman Tech, which owns wedding planners for Rs 11 crores. Matrimony closed 5.4% up. 

Natco Pharma moves sharply lower after Delhi HC allows interim injunction application against co. The stock closed 6.5% down.

While many others struggled, Equitas reported gross advances growth of 15% YoY and Deposits growth of 45% (YoY). Equitas SFB closed 17% up while Equitas Holding closed 20% up.

IT product distribution company REDINGTON approved a bonus issue of shares in a 1:1 ratio. The stock closed 3.43% up.

All India power demand hits an all-time high of 2 lakh MW today. This is why you should look into IEX, power distribution and transmission stocks.

Realty shares lead by Sobha(+5.3%) gained in the day. Godrej Properties(+3.3%), Brigade(+3%) and DLF(+1.4%) also closed with gains. Sobha reported a 40% growth in sales for Q1 to Rs 683 crores. Click here to read about the real estate boom in India.

Edelweiss(+10%) and MotilalOFS(+8.9%) closed with gains.

Some travel-related stocks including MHRIL(+6.9%) and Indian Hotels(+3.5%) closed with gains.

NatcoPharma fell 6.45% after Delhi HC allowed an interim injunction application against the company filed by California-based FMC Corporation on an insecticide Chlorantraniliprole.

Markets Ahead

Nifty is once again near its all-time high showing that yesterday’s fall was a one-off event. And like we discussed yesterday, I still remain bullish on Bank Nifty which once again touched 35,800 today.

Major contributions were made by Tata Steel and HDFC to Nifty today. Also, remember a JSL Hisar which we discussed more than 2 months back? Still holding on to it from gains from 180 zones and now it is at 210 ranges. 

I feel that metal stocks have once again found their strength led by Tata Steel giving a small trendline breakout.

There is a cabinet reshuffling happening with many Union Ministers including Health Minister Harsh Vardhan resigning. We will get to know the full list by 6:30 PM today.

Markets around the world are also looking into minutes from a Fed Meeting tonight, but this might pass off as a non-event.

Will be watching the all-time high of 15,915 in Nifty along with the 35,800 level for Bank Nifty. Both are really important, and if opening with a gap-up, they might act as supports.

Hope you had a great day in the market. What do you feel? Will Nifty touch a fresh all-time high tomorrow or will we have to wait? Let us know in the comments of the marketfeed app!

Catch you all on The Stock Market Show tonight!