Today’s Market Summarised

Big up and down movement ends with NIFTY flat to its opening level.

NIFTY opened the day at 17,797 with a gap-up. Resistance was found near 17,900 and failure to break the level pushed the market down. A 200 point was followed by a quick bounce back. NIFTY ended the day at 17,812, up 67 points or 0.38%.

BANK NIFTY opened the day at 37,674 and shot up. The level of 38k was crossed for the first time since November 22. A fall of 700 points was seen from the day-high in 2 hours. After the last hour recovery, Bank Nifty ended the day at 37,739, up 249 points or 0.67%.

All sectoral indices moved less than 1%. NIFTY Media(-0.83%) fell the most while Nifty Bank (+0.67%) moved up

Asian markets closed mixed today. European markets are trading flat currently.

News Picks

Infrastructure stocks shined on the day. Grasim (+4.4%), ONGC (+4.1%) closed in the top-gainers of NIFTY from the infrastructure index. 

Cement stocks also shined with Ultratech Cement (+1.3%) and Shree Cements (+1.9%) closing in the gainer’s list. ACC (+2.5%), Ambuja Cement (+2.6%), Ramco Cement (+2%) and India Cement (+15.2%) also shot up.

With aluminium prices on MCX giving another breakout, Hindalco (+3%) closed in the top-gainers. National Aluminium (+5.5%) moved up.

Ujjivan SFB (+6.7%) closed in the green after positive loan and deposit data from Q3 and brokerage upgrades. Ujjivan (+1.6%) also moved up.

Chemical stocks continued to show buying interest – SRF (+3.9%), Aarti Industries (+3.6%) and Pidilite Industries (+2.9%) moving up. Valiant Organics (+10%), Vinati Organics (+1.8%), Tata Chem (+2.5%) and others also moved up.

KPIT Tech (+12.8%) gained for the second straight day after Goldmann Sachs initiated coverage with a buy rating.

Easy Trip Planners (+4.2%) moved up after the decision to meet on Jan 12 for a bonus issue. SPARC (+10.6%) hit multi-year highs with huge volumes while Redington (+11.8%) hit a 4-month high.

Markets Ahead

NIFTY closed its best week since October above the level of 17,800 with a move of 3%. Bank Nifty meanwhile outperformed and moved up more than 6% in its best week since mid-may.

Bank Nifty hit its mark of 38k today and cooled back down. We seem to be on the road to market recovery if global and local factors remain neutral. Lockdowns around the country look to be factored in by the market.

Next week we might see a sectoral rotation in the rally if markets remain bullish. Keep a watch on NIFTY METAL and AUTO too for the upcoming week. Looks like 2022 will be really interesting with just 3 weeks to go for India’s Budget.

Which sector looks good for you in the run-up to the Budget? Let us know in the comments section of the marketfeed app!

See you on The Stock Market Show at 7 PM!