Today’s Market Summarised

Nifty once again consolidated in the day closing the day with just losses of 10 points. The index opened the day with a small gap-up and after some violent consolidation, tried to move up. The all-time high zone acted as a good resistance and the index fell. And then just after 1 pm, Nifty fell 150 points intraday as profit booking kicked in. European markets also opened and fell around 1:30 pm.

When global markets started recovering, Nifty also recovered a bit to close at 15,163, down 10 points or 0.07% for the day.

Bank Nifty also consolidated in a tight 600-point range, but closed as the top gaining sector of the day. 4 out of the top 10 gainers in Nifty 50 today were banks. The index opened with a slight gap-up at 35,764 and moved up. This was helped with HDFC Bank making a huge green candle in the first minutes of trading.

SBI, Axis Bank and ICICI Bank also went up in the day. The intraday fall did not affect the index much, which almost touched its all-time high today. Bank Nifty closed the day at 36,108, up 356 points or 1%.

Bank Nifty closed as the top gaining sector, and was the only one to close with more than 1% gains. Nifty Metal fell more than 1.7%, and was followed by Nifty FMCG and Nifty Pharma.

European markets are trading flat to red in the day. Consolidation was also seen in Asian markets, whichever were open.

News Picks

Adani Ports closed as the top gainer in the day in Nifty 50. The gains were supported by Container Corp’s positive results and rally. We have written a well-laid out article on why the stock could rally even more, you can read it here.

Shares of Container Corp closed up 9.7% as rumours of Railways approving a land lease agreement surfaced. A lot of positivity surrounding the stock, along with last weeks good results announcement.

Shares of ITC fell to close down 4% in the day, with results not impressing the market. This sentiment brought down the entire pharma sector with only 2 stocks from Nifty FMCG closing in the green. Shares of PGHH gained more than 3% from the index, as they reported a 77% YoY increase in profit after tax for the last quarter.

Motherson Sumi reported a 2.7 times increase in net profits to Rs 1,268 crore, along with a 14% increase in revenue to Rs 17,092 crore. Shares of the company skyrocketed after this from reds to close more than 10% up in the day. They also said net debt is now the lowest out of the last 14 quarters. 

Again from the same sector, Bharat Forge reported a Rs 210 crore net loss in the third quarter compared to a profit of Rs 40 crore last year. Shares did not fall much as the losses included an exceptional loss of Rs 299.4 crore, which market already factored in. Revenue fell 5.9% YoY.

Adani Enterprises gained more than 9% today as promoters revoked more pledges, as we discussed in the morning report. It entered the list of top 50 companies in India by market capitalization. 

Shares of SpiceJet and Indigo opened with a gap-up then fell sharply as news hit of DGCA increasing minimum and maximum charges on domestic airlines.

Shares of Ashok Leyland fell more than 5% as the company reported net losses for Q3. 

Shares of Bosch fell 3.74% as the company reported a 3% YoY fall in net profits to Rs 184 crore, blaming it mainly on the semi-conductor shortage.

Markets Ahead

Another green week for Nifty with gains of 1.6%. IT and Realty sector performed the best in the week, both gaining nearly 3%. PSU Banks index corrected more than 2.3%, while FMCG also fell 2%.

But more importantly, as we have discussed, when Nifty consolidates is the time when Midcaps and Smallcaps shine the best. Nifty Smallcap index closed more than 3.9% up in the week. Nifty Midcap also gained more than 2%.

I feel that midcaps will generally outperform large caps in the coming years, and have included a midcap fund as well in my portfolio.

IT stocks rebounded like we discussed yesterday. In fact, the top gainers in the morning were all IT stocks for a bit. SBI took support at last weeks low and did not fall. 

Nifty and Bank Nifty have tried testing their all-time highs again today. So the bulls really are trying to outperform. If all goes well over the weekend, we may see Nifty breaking out to form new highs next week.

The India VIX has also fallen 4% to 22.14, showing that volatility has reduced in the week’s close.

Plot a few charts, and find a few companies over the weekend which look good for investment. But do not forget to have a cup of tea and enjoy life, as well. Analyse your P&L and focus on bettering yourself. 

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.