Today’s Market Summarised

Nifty opened the day with a more than 100 point gap-up at 15,205. After opening at this level, it could not sustain much longer and started falling. Till almost 12:15 pm, the index kept falling slowly step by step. But when the index touched 15,100, it reversed and started moving up. It was net consolidation in the day with very slow movements. Nifty closed the day at 15,174, up 76 points or 0.51%.

Bank Nifty opened the day at 36,128 and similarly to Nifty, started falling. It moved in a 420 point range in the day. After consolidating, it tried to move up and close above 36,000 but could not. It closed at 35,938, up 72 points or 0.20%.

Nifty Metal(up 1.87%), Nifty IT(up 1.67%) and Nifty Pharma(up 1.48%) performed best in the day. Only PSU Bank(down 0.15%) index closed in the red.

European markets are consolidating in the day along with Asian markets. 

News Picks

Society of Indian Automobile Manufacturers(SIAM) reported an 18% year-on-year growth in wholesale delivery of passenger vehicles for February month. Auto stocks were generally positive in the day.

With cybersecurity firm QuickHeal announcing a buyback, share prices jumped more than 14% towards the day close.

Titan closed more than 1% up with a company executive saying lower gold prices helped in recovery of demand recovery, and that they expect better margins going ahead.

All IT stocks in the Nifty IT index closed in the green. LTI(up 5.97%) and CoForge(up 5.85%) were up followed by Largecaps. Global IT firms had rebounded yesterday after a week of fall.

Vodafone Idea closed nearly 2% up as company signs deal with Disney+Hotstar to offer live sports.

Metal stocks moved up sharply after 2:30pm. Meanwhile, promoter group of Jindal Steel and Power released pledges on 10 lakh shares yesterday.

Tyre stocks generally went up in the day with Apollo Tyres and JK Tyres said to be thinking of price hikes from this month. 

Infosys promoter group acquired 7.76 lakh shares yesterday. Share prices closed more than 1.5% up in the day.

Dr Reddy shares closed more than 1% up after the phase-3 trials data from the company is expected tomorrow. Audit of API manufacturing plant of the company in New York completed by U.S. FDA.

Government and LIC are planning sale of IDBI Bank stake to private players. Share prices closed more than 5% up.

Graphite electrode producers shares including HEG and Graphite closed 7-8% up with prices of electrodes set to be revised 15-20% higher. 

Logistics companies jumped as government said National Logistics plan is in final stages of release. Blue Dart, Mahindra Logistics, Aegis Logistics, Snowman Logistics all gained 3-5% in the day. 

IEX shares gained more than 2% after the company offloaded 26% shares in Indian Gas Exchange to ONGC and NSE.

Hoping IndiaMart Intermesh jumped 8.5%, and hoping that the rally in the stocks continues into more next week.

Markets Ahead

A very calm weekly expiry in Nifty. Bank Nifty was even more calmer. India VIX, which measures volatility in the market reached 20-ranges, down 9% today.

IT stocks to benefit was a known thing in the day, and anyone who made intelligent use of this could have taken a good trade today. Around this time last week, we had talked about IT stocks set to reverse. Well I acted on my word and exited with some modest gains. Airtel shares had worried me yesterday after breaking the 520-level yesterday, but moved up above it today. Looking for a reversal in the stock.

Midcaps and smallcaps outperformed Nifty today. This is always the trend when benchmark index consolidates.

Well tomorrow is a market holiday, if you did not know already. An extra off-day for market participants to recharge themselves ahead of Friday’s trade. After today’s consolidation, we may see some wild movements especially in Bank Nifty who surprisingly moved just over 400 points from high to low.

Enjoy your mini-weekend from the market.

Catch you all on The Stock Market Show tonight!