Today’s Market Summarised

Market consolidates at the top with every sectoral index consolidating in the day.

Nifty opened the day at 15,630 and tried to move up. After facing weakness at the top, it fell 130 points the day-low. But from here, Nifty moved up with a lot of volatility. At the end of the day, Nifty closed flat at 15,574, down 8 points or 0.05%.

Bank Nifty opened at 35,651 and it too did not have any power near the top. ICICI Bank fell heavily in the morning to take Bank Nifty down to 35,200 levels. From here, the index tried to gain back but was highly volatile. Bank Nifty closed the day at 35,337, down 190 points or 0.53% in the day.

All sectoral indices closed without giving even a 1% move today.

Asian markets mostly closed in the green today. European markets are all trading in the green, with good manufacturing data coming from U.K.

News Picks

Adani stocks saw renewed strength in the day. Adani Ports (+3.7%), closed as Nifty 50’s top gainer. Also, Adani Ent(+7.5%), Adani Power(+3%), Adani Trans(+1.7%) and ATGL(6.8%) also moved in the day

ONGC gained nearly 3.5% in the day and is just 4% away from its 52-week high now. It is a good resistance zone for the stock, and might see a good move if crossing these levels.

Nifty Auto tried to move up in the day but closed 0.32% in the red. Many auto companies reported their auto sales data for May. 

The only auto stock to gain considerably was Bajaj Auto, which closed 1.1% up. The stock was up nearly 3.5% in the morning but fell soon afterwards. Bajaj Auto reported May Total Sales at 2.71 lakh units, up 113%. But the numbers were still down 30% compared to April, as expected.

Ashok Leyland reported a 60% month-on-month fall in total sales at 3,199 units. The stock closed 1.46% down.

Even as Auto stocks consolidated, auto ancillary stocks moved down. Bharat Forge, Mothersumi and Balkrishna Industries closed more than 1% down.

Cabinet Ministry says Railways loaded the highest ever freight of 114.8 metric tonne in May, up 9.7% from May 2019. Concor moved nearly 3% from day low and closed 1.35% up.

Reports of Chinese steel mills profits falling in May, and the potential easing of restrictions to increase China’s steel supply. Most steel companies fel sharply in the day, but regained a bit. JSW Steel(-2.31%), Tata Steel(-2.2%) closed as Nifty 50’s top-losers. SAIL(-4.2%), Jindal Steel(-2.63%) also fell.

Crisil Ratings says shrimp exports to rebound 20% and that India will regain the top spot. Avanti Feed gained 1.76% in the day and Apex Frozen gained 2.3%.

OIL India completed transfer of shares of Numaligarh Refinery Limited to the Government of Assam. The stock jumped and closed 2.7% up.

Radico Khaitan Ltd reported Q4 net profit at Rs 73.5 crores, up 124% YoY. The stock closed with 1% gains.

Balrampur Chini Mills, sugar manufacturer, reported Q4 consolidated net profit at Rs 235 crores vs Rs 241 crores last year(-2.4%) vs Rs 26.9 crores last quarter(+773%). The stock closed flat.

Except for SBI, all Nifty Bank constituents closed in the red. ICICI Bank was down by 1.91%. top loser.

HDFC Mutual Fund acquired 24.81 lakh equity shares in IRB Infrastructure at Rs 111 per share.  IRB Infrastructure moved 5% from day low and closed 2.6% up at Rs 116.

PNB Housing again closed 20% up in the day after yesterday’s fund-raising news. The stock has now gained 44% in the last 2 days.

Stocks like Capri Global(+18.6%), FluoroChem(+11%), NH(+12.4%) and Venkey’s(+10%) were in a different trend in a consolidating market.

Markets Ahead

A very uneventful start of the month for the Indian markets.

Markets looked in a mood to consolidate after the rally in the last 2 days. With the high number of call option contracts being written at 15,600 and above, a further bullish move will have to wait. This shows that the level may act as a good resistance for the week. 

Even when profit booking kicked in for Nifty, the index easily gained back and closed above 15,550. If you look at the 1-Day charts, Nifty has closed in the red after 7 trading days. The candle still shows a bit of strength, and today’s high and low levels can be watched for catching a good movement tomorrow.

India VIX is slightly up, by 3%. SBI still looking strong and closing in the green might be a good sign for more moves from PSU Banks, especially PNB with PNB Housing Finance showing such a big turnaround. 

Hope you had a great day in the market!

Catch you all on The Stock Market Show tonight!