Today’s Market Summarised

Once again, a bull attack in Nifty. Markets moving steadily upward in the day, with Banks and Financial stocks leading the charge.

Nifty opened the day at 14,712 with a 60 point gap-up. Unlike other days, there was no confusion today. The index was only in the mood to go up. After crossing 14,750 resistance, then it was a smooth journey up. Gaining nearly 200 points from the day low, Nifty closed at 14,864, up 211 points or 1.44%.

Bank Nifty was highly bullish after opening at 32,878. The level of 33,100 was taken as a resistance which was easily broken after 11:45 am. Just around this time, the index started flying, and it did not stop with all members of the index closing 1-6% up. Bank Nifty closed the day at 33,772 up 987 points or 3.02%.

Bank Nifty(up 3%) was the highest gaining sectoral index followed by Fin Nifty and Nifty PSU Bank up nearly 2.7% each. No sector closed more than 1% down.

Major Asian markets closed mixed in the day. European markets are currently all trading slightly in the green. The positivity was not from International markets today.

News Picks

Shares of TVS Motors gained 14% after Q4 net profit numbers grew 4 times from that of last year. The two-wheeler manufacturer claims to have outpaced the competition in its sales growth numbers.

With these profit numbers, shares of peer companies Eicher Motors(up 5%) and Bajaj-Auto(up 2.75%) also gained.

Goa announces a complete lockdown from the evening of April 29 to May 3. Casinos, hotels, pubs will be closed. DeltaCorp fell sharply after the news and closed nearly 1.5% down.

Food delivery platform Zomato has filed its Draft Red Herring Prospectus (DRHP) with SEBI India today. Info Edge(up 1%) owns a considerable stake in the company. Zomato will offer equity shares aggregating up to Rs 8,250 crore

There were reports of China cutting import tariffs on some iron, steel products to 0%. Steel stocks moved heavily after the news as this means that export to China could increase. SAIL closed 3.34% up, but the Nifty Metal index closed 0.5% down.

Aurionpro Solutions and MasterCard signed a strategic alliance for automatic fare collection & payment solutions. Aurionpro is up by 6%. A good time to look into the small-cap?

Morepen Lab’s board clears $100 million(~Rs 750 crore) investment from Switzerland-based Corinth Group. The stock went up to hit 10% upper circuit.

State Bank of India has approved its long term fundraising plan, to raise up to Rs 14,896 crore. The stock gained nearly 3% along with other banks.

Yesterday, Axis Bank posted a consolidated net profit of Rs 2,960.40 crore for Q4, against a loss last year. But with worsening asset quality being a worry, it underperformed Bank Nifty. Axis Bank closed nearly 1% up in the day.

With Nifty getting back to bullish mode, banking stocks including IndusInd Bank, ICICI Bank, Kotak Bank, SBIN, HDFC Bank closed as Nifty 50 top gainers.

Bharti Airtel backed OneWeb has secured $550 million (about Rs 4,100 crore) in funding from Eutelsat Communications. The stock moved 1.7% up.

Bajaj Finserv net profit grows more than 5 times to Rs 979 crore in Q4 compared to the same quarter last year. The stock is up by nearly 4%.

Yesterday, subsidiary Bajaj Finance reported a higher consolidated profit at Rs 1,347 crore in Q4, up nearly 40%. The stock gained 8.5 %. It topped the Nifty 50 gainers list. 

FMCG stocks remained weak in the day after Britannia’s Q4 results failed to excite investors. Britannia closed 1.76% down as Nifty 50’s top loser.

Markets Ahead

With the Q4 results coming in one by one, markets have turned bullish once again. Well IT stocks reported good profits mostly as expected. But the banks and NBFCs too, including the Bajaj Twins, ICICI Bank and HDFC Bank. 8 out of the top 10 gainers in Nifty were Banks or NBFCs.

Bank Nifty easily broke the 33,000 resistance zone in the day, with Nifty moving up to 14,800 and beyond. If you look at the charts, a good resistance zone can be seen at 14,890-14,900 where the Nifty fell from today. With more power from HDFC(up 2%) and Reliance(could not close above Rs 2,000), this will not be an issue for Nifty. 

A lot of options players have been betting for the markets to move up. But the journey above 15,000 would probably only be seen when FIIs turn net buyers. With only 2 more trading days left in the calendar month, will we see it happen?

Those who went out shopping during the dip can comfortably book their easy profits now. And those who waited for the crash to 13,000 can keep waiting.

Stay safe, stay home and do wear a mask if you are going out.

Catch you all on The Stock Market Show tonight!