Today’s Market Summarised

Nifty keeps moving up, nearing all-time high levels with each trading day.

Nifty opened the day at 15,258 and tried to move down. But the index took support before reaching yesterday’s low and started moving back up. With a splendid move from Infosys, Nifty kept moving up even as Banks remained weak. The zone just above 15,300 was a sharp resistance zone and Nifty closed at 15,301, up 93 points or 0.61%.

Bank Nifty opened at 34,765 and fell sharply taking Nifty down as well. But it went back up and consolidated through the day, and the index traded between yesterday’s high and low. Bank Nifty closed flat at 34,684, up 22 points or 0.06%.

Nifty Metal(-1.86%) again fell in the day. Nifty Realty(+2.84%) was the best performing sectoral index followed by Nifty Media(+1.87%) and Nifty IT(+1.76%). All other indices consolidated without giving even a 1% move.

Most Asian markets closed in the green, signalling the gap-up for Nifty today as well. European markets are trading flat.

News Picks

Bajaj Finance(+2.7%) and Bajaj Finserv(+4.6%) closed as Nifty 50’s top-gainers of the day. They were consolidating all through last month as other financial stocks went up.

Expecting a good monsoon season ahead, fertilizer and chemical stocks gained some momentum. UPL and NFL closed 2% and 3.2% up respectively. RCF, ChambalFert, FACT moved 1%.

IT stocks were bullish throughout the day. Infosys(+2.6%), Wipro(+1.87%) and TechM(+1.53%), TCS(1.4%) performed well, giving some movements to Nifty 50.

A Subject Expert Committee (SEC) suggests Emergency Use Authorisation (EUA) for Remdesivir tablets by Jubilant Life Sciences. The stock closed 6% up in the day.

Wockhardt Pharma approaches Govt, asks for help in tying up with COVID vaccine makers. The company said there are 3 facilities that can be repurposed for vaccine manufacturing. The stock gained over 8.5% in the day.

Happiest Minds signs a strategic partnership with IT solutions co Yotta Infra. The stock closed 4.3% up.

V-Guard reported a Q4 net profit posted of Rs 67.8 crores, up 110% YoY, and a fall of 12% compared to last quarter. The stock closed 4.8% up in the day. 

Berger Paints saw sharp buying near the end and closed 1.6% up after reporting Q4 profit numbers. Net profit stands at Rs 211 crores, down 23% compared to last quarter but much above estimates. 

Interestingly, Shalimar Paints is up 10.8% and even Asian Paints is up 0.88%.

Manappuram Finance fell from the day high and closed 0.5% up after reporting an 18% YoY increase in Q4 consolidated net profit at Rs 468 crores. The results were below estimates.

HDFC said it will raise up to Rs 7,000 crore by issuing bonds on a private placement basis. The stock is up by 1.46%

Realty stocks gained in the day lead by DLF(+4.5%) and Indiabulls Real Estate(+8%). Also, IndiaBulls Housing Finance gained 4.5% in the day.

Metals stocks are still in the red side. Jindal Steel(-4.3%), Sail(-4.2%), JSW Steel(-2.6%), Hindalco(-2.6%), NMDC(-2.5%), Tata Steel(-2%) Coal India(-1.1%) are the major losers.

Mahanagar Gas gained 4.5% on better than expected Q4 earnings reported yesterday.

Markets Ahead

Today’s most interesting moves came from the Bajaj Twins which have been consolidating till now in May. While all other financial stocks went up sharply, these two had been consolidating and gave a beautiful breakout in the day. Can watch them for further movements.

We had discussed expecting a move from fertiliser stocks including UPL on last Friday. Anyone who entered then could have exited with some handsome profits by today. Also, include some good stocks from the sector in your long-term portfolio as well. 

Infosys is all set for more moves and is such a stock that has never disappointed investors. Along with TCS, it gave nearly 40 points to Nifty’s 90 point move today.

If you remember, the day all-time high was hit by Nifty was a red candle in the daily charts. And today’s resistance zone was near the closing level of that candle of 16th May. It is Nifty’s best close since 15th May.

But interestingly, heavyweight stocks including HDFC Bank, HDFC, and Reliance are far from their 52-week highs. So more rally from these stocks could indeed take Nifty up till the all-time high levels.

15,300 resistance we discussed yesterday was very strong in the day. But Nifty has closed above this level indicating bullishness. If global markets do remain positive, we might see Nifty reaching the all-time high zones this week itself. 15,200 and 15,100 will act as good supports for this week and 15,000 will act as a good support going into next month.

Catch you all on The Stock Market Show tonight!