Today’s Market Summarised

Markets open with a gap-up and showed consolidation after touching all-time highs.

NIFTY opened the day at 18,502 with a gap-up of nearly 160 points. After the initial profit booking, the index moved up to again touch an all-time high at 18,543. After some consolidation, NIFTY closed the day at 18,477, up 138points or 0.76%.

BANK NIFTY opened the day at 39,689 with a 300 point gap-up. There was volatility seen in the first 30 minutes. The index hit a fresh all-time high near 39,950. After consolidation towards the end, BANK NIFTY closed the day at 39,684, up 344 points or 0.87%.

NIFTY PSU BANK(+3.9%) and NIFTY METAL(+3.8%) closed well in the green today. NIFTY IT(+1.5%) also closed with gains while NIFTY Pharma(-0.89%) moved down.

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

News Picks

Hindalco(+5.1%) closed as NIFTY 50’s top-gainer after U.S. American Aluminum supplier Alcoa announced strong Q3 results and shot up on Friday. National Aluminium(+13.1%) also moved up along with Vedanta(+12.9%).

Infosys(+4.4%) closed among the top-gainers with bullishness and pushing up Nifty. TechM(+3.4%) also closed with gains. However, HCL Tech(-2.3%) closed as Nifty’s top-loser after announcing its quarterly earnings.

With multiple reports including one from CRISIL(-0.06%) saying that there is a recovery in domestic steel demand since the second half of September and possible price hikes coming, steel companies showed bullishness. JSW Steel(+3.3%) and Tata Steel(+2.6%) closed among the top-gainers.

SAIL(+3.8%) and Jindal Steel(+1.2%) also closed in green.

Hindustan Copper(+12.7%) closed higher on expectations that the divestment process may start next month. 

Hindustan Zinc(+11.8%) also showed bullishness in a good day for metal stocks. Shanghai Zinc prices went to a 14-year high as the power crisis cut the output of the metal.

ICICI Bank(+2.5%) closed among the top-gainers of NIFTY 50 even after HDFC Bank(-1%) reported good results and fell sharply. The results from ICICI is expected by Saturday.

ITC(+2.3%) closed among top-gainers of Nifty 50 as most other FMCG stocks consolidated.

Tata Power(+15.5%) closed with bullishness and saw its biggest daily gain ever as the company is looking to raise funds for the initial public offering (IPO) of its renewable energy unit.

Tata Motors(+2.3%) says the outlook on semiconductors is better in Q3 vs Q1 and Q2 and closed in green. Other auto stocks including M&M(-2.2%), Bajaj Auto(-1.2%), Eicher Motors(-0.9%) and Hero Moto Corp(-0.8%) closed in the top-losers of Nifty.

PNB(+8.1%) gained sharply hitting a 52-week high along with SBI(+1.5%), Union Bank(+9.1%), Bank of Baroda(+4.8%), Bank of India(+3.9%), Indian bank(+4.2%), and Canara Bank(+2.7%). This happened even with the PNB Housing-Carlyle deal being called off. PNB Housing closed at 5% Lower Circuit.

Antony Waste Handling Cell fell 10.9% after the Income Tax department conducted a search at the offices of the company and three of its subsidiary companies.

Shares of DMart(-8%) saw profit booking after opening at a record high. The supermarket chain owner had reported a significant rise in its consolidated net profit for Q2.

NHPC(+14.8%) and SJVN(+14.8%), two hydropower related public companies closed with gains in the day on the expectation that hydropower will be in good demand after a drop in the supply of coal.

Railways related companies IRCTC(+7.5%), RVNL(+11%), RailTel(+3.7%) and IRFC(+3.1%) closed with gains in the day.

Ramkrishna Forgings(+3.2%) wins orders from Indian railways for the manufacturing of loco shells and moved up.

UltraTech Cement(+0.05%) showed volatility and closed flat after reporting Q2 Consolidated Net Profit at Rs 1,300 crores vs Rs 1,200 crores last year. Q2 Revenue at Rs 12,017 crores vs Rs 10,000 crores last year.

Markets Ahead

In general news, the Finance Ministry is expected to meet rating agency Fitch likely this week for a rating upgrade. This re-rating would keep Foreign Institutional Investors confident about investing more in the country. 

There is a silent move in Coffee prices being seen worldwide. Keep a watch out for coffee stocks and Zinc stocks.

India reported its lowest Covid-19 cases in 230 days yesterday. Increased vaccination speed and a high number of already infected individuals have slowed down the spread of the virus.

NIFTY once again moved up sharply mostly with the help of Infosys at reaching 1,800. It is a 52-week high for the stock, even beating the buyback price earlier announced by the company. The stock contributed more than 70 points to the index today and supported the market while HDFC Bank opened with a gap-up and fell.

Keep a watch on the pre-results rally in your favourite stocks as the season of results has once again started. SBI hitting a fresh 52-week high gives some confidence that Bank Nifty might touch 40,000.

However, there are red signals from European markets and U.S. Futures. NIFTY has also formed a red candle in the daily charts for the first time since October 8th. A resistance to watch out for would be 18,550 on the upper side with supports at today’s lower level and 18,350.

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