Today’s Market Summarised 

Nifty opened the day with a strong gap-up at 10,915 and unlike previous days of the week with gap-ups, kept on going up through the day. Even though the index briefly went below the day’s open at around 10am, it took support and went back. Between 12.15pm and 2.15pm, Nifty consolidated in a brief range, taking resistance at 11,000. During this period European markets opened mostly in red, but Nifty stayed sideways. After consolidating, Nifty went up to close at 11,050, up 244.70 points or 2.26%.

Bank Nifty opened  the day at 20,685 with a gap-up, but went straight down, unlike Nifty. Support was found by the index near 20,450 and from there it rallied up. It took some time for the index tracking major banks in the country to break 20,900 level, but when it did it went up fast. Bank Nifty closed the day at 20982.35, up 525.50 points or 2.57%. 

Even while Bank Nifty went up a lot, it was not the top gaining sector. Nifty IT and Nifty Auto were the top gaining sectors in a day were every sector closed in green.

Asian markets closed mixed for the day. European markets are trading in red, at the time of Indian market close.

News Picks

Shares of Tata Consumer Products, which was beaten down heavily in the last few days, recovered to close at ₹509.80, up 4.33%. The company was said to be thinking about a non-binding bid for the vending machine business of Coffee Day Enterprises, which is a very well-known and respected business.

Shares of Raymond gained 4.15% to close at ₹263.70 after the company said it will raise ₹100 crore through Non-Convertible Debentures.

Shares of IRB Infra closed at ₹108.70, up 6.36% after they said they would start toll collection on Yedeshi Aurangabad highway in Maharashtra post completion of the project. This was discussed in the morning marketfeed article by us, hope you too caught this jump.

Shares of TCS gained 3.67% to close at ₹2,417 after the company said it would be building the technology infrastructure for US and Canada-based women’s fashion retail chain, Maurices. But it was far from the top-gaining IT stock of the day with COFORGE going up 9.01% and HCLTech going up 5.30%. Hope you caught this jump!

Every sectoral index closed in red for the week, along with Nifty. Out of this, Nifty IT was the least affected (down by only 1%) while Nifty Media fell over 9%.

IDFC Bank proved to be another jackpot today, with trade closing at ₹29.25, up 8.33%. It was the only bank in the top gainers list from Nifty 50 and Nifty F&O activated stock. This sudden jump may have happened after they were said to lower their ownership in Suryoday Small Finance Bank, which is ready with the intention of making an (IPO).

Shares of Marico Ltd went up 3.18% to ₹353.5 after the company said it had sold its entire stake in the fitness app Revolutionary Fitness (Revofit).

Shares of Idea shot up 12.09% to ₹10.20 after Vodafone International Holdings BV won a case against the government under the India-Netherlands Bilateral Investment Treaty. The case was over an amount of ₹20,000 crore, and the relief in the mind of the promoters must be huge. Vodafone Idea Ltd had lost 48 lakh users in June, and is now losing customers for the eighth month in a row.

The new-comers into Nifty were welcomed with a mixed response. Divi’s Laboratories had a good start, closing at ₹3,051, up 1%. Meanwhile, SBI Life Insurance ended as one of the only 3 losers on Nifty 50,  closing at ₹795.45 and down 1%.

Shares of Infratel gained 7.69% to close at ₹182.10, and would have been the top gainer of Nifty 50 but it was kicked out of the index from today. Shares of another stock which was kicked out, ZEEL, also closed up 3.65%, at ₹197.30 for the day. Too late to shine.

Shares of Bajaj Finserv closed at ₹5783.60, up 6.60% to close as Nifty’s top gainer. It broke a long losing streak to breakout above many levels. The company had announced its new subsidiary yesterday, Bajaj Finserv Health Ltd who is set to bring advanced tech driven health plan to consumers through their new mobile app ‘Aarogya Care’.

Shares of Canara Bank closed at ₹87.30, up 4.80% after the Public Sector Bank announced a Qualified Institutional Placement of ₹2,000 crore. 

Markets Ahead 

Nifty closed strongly above the 11,000 mark today. It was the first day in green in 7 days. As we had talked in the morning article, the last time Nifty ctourched 10,800, it flew up to 11,500 in 4-5 days. Will it happen this time? Or will Nifty just find resistance at 11,100 and dive back down? Global cues are looking very unstable and I personally feel that if it remains the same, the bears are just taking a break before getting back into action. Obviously all this will change once Nifty reclaims 11,200. Keep watching this space for more.

Did you read the new article by marketfeed talking about how Mindtree was acquired forcefully by L&T in 2019? Check it out here.