Today’s Market Summarised

Bank Nifty breaks out and gives positivity to the general market.

Nifty opened the day at 16,566 and moved down to take support at 16,500. After the first hour fall, Nifty slowly went back up to cross 16,590 and 16,600. The bullishness was mostly given by banks, and Nifty closed the day at 16,625, up 128 points or 0.78%.

Bank Nifty opened at 35,230 and move down till near 35,070 levels. The index moved up from the bottom to the resistance at 35,800. The index was boosted by HDFC Bank and ICICI Bank in the day. Bank Nifty closed the day at 35,712, up 587 points to 1.67%.

Nifty Metal(+2.9%), Nifty Media(+1.96%) along Nifty Realty(+1.83%) recovered after last week’s fall. Nifty PSU Bank, Nifty Bank and Nifty Pharma also closed with gains.

Most Asian markets have closed in the green today. All the European markets are currently flat and mixed.

News Picks

Bajaj Finserv(+7.7%) and Bajaj Finance(+3.3%) saw good buying in the day and closed among the top-gainers in Nifty 50. Bajaj Finserv got in-Principle approval from SEBI for setting up an asset management company and Mutual Fund.

HDFC Bank(+2.2%) moved up and closed among the top-gainers.

Other Non-Banking Financial Companies(NBFCs) including Muthoot(+3%), Shriram Transport(+2.7%), Manappuram(+3.1%), L&T Finance(+3.3%), CholaFin(+5.3%) and M&M Finance(+4.9%) also gained in the day.

Adani stocks stayed in the green today. Adani Ports(+4%), Adani Ent(+2.9%), Adani Green(+1.7%), Adani Power(+5%-UC), ATGL(+5%-UC) and Adani Transmission(+5%-UC) moved up with spikes near the market close. Last day, promoter Infinite Trade & Investment had bought up shares of Adani Green, is this a continuation?

Metal stocks gained back after a sharp correction last week. Hindalco(+3.4%) and Tata Steel(+3.3%) closed with gains. 

National Aluminium(+7.5%), NMDC(+5.4%), Vedanta(+4.5%), SAIL(+3.5%) and Jindal Steel(+2.5%) also gained along with JSL(+17%) and JSLHisar(+12.6%).

FMCG and IT stocks saw profit booking with Britannia(-1.4%), Nestle(-1.2%) and Infosys(-1%) featuring among the top-losers of Nifty 50.

Both IPOs Aptus Value and Chemplast Sanmar got listed in the market flat or with a small discount.

Wonderla(+3.4%) Kochi to reopen from September 1.

Brokerage Firms Motilal Oswal(+7.5%), Edelweiss(+3.2%), IIFL Securities(+10%-UC), JM Financial(+5.4%), Geojit(+8%), ICICI Securities(+2.8%), Angel Broking(+3.5%) closed with good gains.

Markets Ahead

As we discussed in the markets ahead section yesterday, IT and FMCG stocks have cooled down from their 52-week highs.

Markets are once again showing strength with HDFC Bank leading the rally this time with ICICI Bank and Reliance. HDFC Bank stock alone gave 33 points to Nifty and 230 points to Bank Nifty today.

We have been discussing how the uncertainties surrounding the stock are now lifted and it may rally. Reliance is also looking in a mood to move up.

There was also a recovery in the broader market with quality Midcaps and Smallcaps rallying back up. The Indian market seems to have regained its stability, especially with the NASDAQ and S&P 500 in the U.S. gaining back to all-time highs.

The surprise move was from Bajaj Finserv, whose price is now reaching close to Nifty’s price. Seeing that both Bajaj Finance and Finserv got a stock split and bonus in 2016, it might be time for one more. So keep an eye out for these stocks and make sure such quality companies are there in your portfolio.

Is your portfolio filled with Nifty 50 companies or mostly midcaps? Let us know in the comments of the marketfeed app.