Today’s Market Summarised

Markets hold strong and close in the green for the third day, even with intraday volatility.

NIFTY opened the day flat at 18,006 and traded around that level. Towards the afternoon, the index slowly went up and found resistance at 18,080. After some last hour volatility, NIFTY ended the day at 18,055, up 52 points or 0.29%.

BANK NIFTY opened the day at 38,379 and was volatile from the first candle. It found resistance at 38,500 and fell back to the 38k mark in just one hour. Towards the end, the day-high was again tested but not broken. Bank Nifty ended the day at 38,442, up 94 points or 0.25%.

NIFTY IT(+1%) and NIFTY Metal(-1.9%) showed good movements while all other sectoral indices consolidated.

Asian markets closed mixed today. European markets are currently trading in the green after yesterday’s fall.

News Picks

IT stocks saw buying ahead of the major earnings reports tomorrow. HCL Tech (+4.3%), TechM (+1.2%) and TCS (+0.93%) closed among the top-gainers of NIFTY 50.

Adani stocks saw heavy buying in the day with Adani Ports (+3.5%) closing among the top-gainers. Adani Enterprises (+5.2%), Adani Transmission (+2.6%)and Adani Green (+9%) also moved up.

Adani Green (+9%) reported that their total operational capacity increased by 84% year-on-year (YoY) to 5,410 MW.

PVR (+3.4%) is now nearly 20% up in the last 16 trading sessions after market factored in the lockdowns around the country. Tata’s retail stock Trent (+4.4%) is nearly 15% up in this time frame.

Steel and metal stocks underperformed after brokerage firms downgraded ratings with Jefferies lowering optimism on the metals sector in India. JSW Steel (-3.9%), Tata Steel (-3.3%) and Hindalco (-1.3%) fell from NIFTY 50. Jindal Steel (-5%), SAIL (-4.8%) and National Aluminium (-3.7%) also saw heavy selling.

Reliance (+0.72%) owned JustDial (+6.3%) moved up after planning to enter e-commerce business by launching an online shopping app.

Vodafone Idea (-20.5%) opened at a lower circuit and crashed down again after its board approved the conversion of AGR and spectrum liabilities into Equity. This will lead to a huge dilution for all shareholders and the government will be 35.8% owner of the company.

Hinduja Global (+6%) moved up after considering potential mergers and also buyback of securities on Jan 14.

Markets Ahead

IPL fans will be thrilled to know that the title sponsorship is being picked up by Tata for next year, with VIVO pulling out.

The 18,100-18,120 zone is more important to NIFTY in its charts than even the 18,000 mark. This zone may be tested tomorrow with 3 big NIFTY 50 companies announcing results – TCS, Infosys and Wipro. 

As we discussed yesterday, TCS is also expected to announce a buyback of shares.

An interesting media report today said that the Govt may announce the roadmap for a national green hydrogen mission in the upcoming budget. What makes this interesting is that Adani just incorporated a subsidiary yesterday which will focus on green projects including Hydrogen ones. The buying interest on Adani stocks may continue for the coming trading sessions.

Bank Nifty’s biggest contributor to today’s move was AU Bank! It moved up 5% today, up 40% in the last 7 trading sessions! Yes, an F&O stock that has moved more than 40% in just over a week. Can this be an indication for other stocks in the index?

See you on The Stock Market Show at 7 PM!