Today’s Market Summarised

What a crazy expiry in the market today! After the Fed announcement, markets around the world turned red and so did ours.

Nifty opened the day at 15,659 with a gap-down but then shot up. It even turned green and touched 15,770. But from here, a slow fall was seen with Nifty taking support at 15,700. Just after 2 PM, the index fell sharply to 15,600 ranges and then recovered. Nifty closed the day at 15,691, down 76 points or 0.48%.

Bank Nifty also followed a very similar pattern. After opening at 34,634, the index tried to move up but could not even break 34,900. After some sideways moves, just at 2 PM, sharp selling pulled it down to 34,450 levels. Bank Nifty recovered from day lows and closed at 34,605, down 398 points or 1.14%. 

Nifty Metal(-2.32%) and Nifty Realty(-1.65%) once again closed with the most losses. Nifty Bank, Auto, Finserv, Media and Pharma closed with near 1% loss each.

Asian markets closed mostly in the red today. European markets are all trading in the red currently.

News Picks

Cement shares were in focus today with demand expected to pick up once the economy opens up. UltraCemCo(+1.78%) closed as Nifty 50’s top gainer. Other cement stocks including JK Lakshmi(+4%), Ramco Cements(+1.1%), Ambuja Cements(+2.1%), ACC(+1%), Orient Cements(+1.6%) also went up.

With a reported increase in product prices and promoters releasing pledges on 5.25 lakh shares, Asian Paints closed 1.3% up in the day.

With the dollar strengthening against the rupee and USDINR reaching the highest level since May, IT stocks shot up in the day. TCS(+1.3%), TechM(+1%), and Infy(+0.99%), featured in the top-gainers list.

There were reports that tyre prices could increase in June. Tyre stocks started to move up after the news, but the movement couldn’t sustain in a bearish day. Balkrishna Industries(+2.65%) closed with gains.

Metal stocks are still in a bearish mood. SAIL(-2.2%), Tata Steel(-3.3%), JSW Steel(-1.2%), Jindal Steel(-2.%), Hindalco(-2.8%), Nationalum(-1.8%) and VEDL(-1.1%) closed with losses.

Adani Ports(-8.4%), Adani Ent(-5.5%) continued to fall in the day. ATGL, Adani Trans, Adani Green and Adani Power are trapped in the 5% Lower Circuit for the 4th continuous day.

Defensive sectors performed well on the day of market fall. They are consistent dividend-paying stocks with stable earnings like IT and FMCG stocks.

FMCG stocks including Marico(+2.4%), UBL(+2.3%), Tata Consumer(+1.2%) and McDowell(+1.6%), closed with decent gains.

Banking stocks were weak in the day with IndusInd Bank(-2.9%), RBL Bank(-2.8%), PNB(1.5%), and Axis Bank(-1.4%), falling sharply. Only Federal Bank(+0.47%) and Kotak Bank(+0.3%) closed in the green from Bank Nifty.

Federal Bank’s board approves raising funds through equity worth Rs 916 crore from World Bank’s arm – IFC. The board also decided to raise up to Rs 4,000 crore by issuing equity shares or other instruments through various modes and Rs 8,000 crores from debt instruments.

Other finance stocks including IbulHsgFin(-5%), M&MFin(-4%), HDFC(-1.25%), MuthootFin(-2.1%) also fell.

India Tourism Development Corporation’s (ITDC) board said they would meet today for asset monetization. ITDC shares jumped 12.5%.

BEML’s strategic sale may be discussed tomorrow. The stock closed 3.5% up.

Max Finance’s promoter raised nearly Rs 700 crores by selling a 2% stake sale to a Sovereign Fund. Stock moved up and then cooled down to close 1.6% in the red.

PharmEasy is likely in talks for stake buy in Thyrocare. Thyrocare closed 1.25% up and is already up 18% in the last week.

HSCL closed 7.8% up even after saying there are no discussions for any tie-up with Tesla for battery tech.

Markets Ahead

What a thrilling and volatile Thursday expiry after many weeks. Nifty opening with a gap-down, then moving up then crashing down again.

Nifty closed just under 15,700 even though it tried to end the day above that mark. What was most interesting was Infy and TCS shooting up near market close as the rest of the market fell. 

Once again, broader markets fell with a 1.4% fall in Nifty Midcap index. 

With signals from the U.S. Fed triggering profit booking in global markets, Nifty played along and moved down. The support at 15,550 still looks strong for the index and the close does not look too weak. Reliance still managed to close above 2,200. 2,480 zone is also good for HDFC as a support.

Bank Nifty, on the other hand, continues to show bearishness with a more than 1% fall. HDFC Bank will have to now break 1,480 and 1,520 to regain some strength. 

We might see a small pullback tomorrow, meaning a green candle can be expected. But don’t turn bullish again yet.

A clear sign of bullishness will be given when Nifty decides to move across the 16,000 mark. Already looking ahead to next week’s expiry with Reliance’s Annual General Meeting on that day. Will be an interesting one!

Catch you all on The Stock Market Show tonight!