Today’s Market Summarised

A bullish start to the week with Nifty closer to 17,000 than ever before.

Nifty opened the day flat at 16,776 with a gap-up and was bullish. The index flew up surprising market participants, taking resistance only at 16,880. Eventually, even this level was broken and the index rallied on to touch 16,950. Nifty saw profit booking near the end and closed the day at 16,931, up 226 points or 1.35%.

Bank Nifty opened the day at 35,754 with a small gap-up and was confused about whether to move up. But bulls took over and pushed the index above the 36,000 mark with ease. After some consolidation, it once again moved up after 1 PM and hit its highest levels since March. Bank Nifty closed the day at 36,347, up 720 points or 2.02%.

Bank Nifty, the PSU Bank Index and Nifty Metal rallied the most in the day. Nifty Finserv, Nifty Auto, Nifty Pharma and Nifty Realty also moved up with only Nifty IT closing in the red.

All Asian markets mostly closed in the green today. European markets are also all trading slightly in the green currently.

News Picks

Bharti Airtel(+4.2%) rallied up to close as Nifty’s top gainer after last day’s fall. The stock was boosted by fundraising plans via a rights issue and good commentary by the management in the investor call.

Axis Bank(+4.2%) jumped up to hit its highest level since February with strong buying. The stock pushed up Bank Nifty the most. The bank said it has started issuing debt securities under its Rs 35,000 crore-debt raise plan approved last month.

Bajaj Finance(+2.8%), Bajaj Finserv(+2.2%) continued their bull run. SBI(+2.4%) has reversed from its Rs 400 support zone and closed among the top-gainers.

Metal stocks were bullish today with Tata Steel(+4%) closing among the top-gainers. Tata Steel had said it will invest Rs 8,000 crore in capital expenditure on its India operations during the current financial year.

Other Nifty Metal stocks including Coal India(+3.6%), National Aluminium(+3.4%), SAIL(+2.7%), Jindal Steel(+2.6%) and Hindalco(+2.3%) also closed with bullishness.

Shares of Divis Lab(+3.9%) continued their bull-run and hit fresh all-time highs. Other Pharma stocks including SunPharma(+2%) are near their breakout zones.

Domino’s Pizza franchisee owner Jubilant Food(+2.4%) moved up after CLSA raised the target to Rs 4,030/share. Pizza Hut and KFC franchisee Devyani International(+7.8%) gained. Other FMCG stocks including Godrej CP(+3.1%), Colpal(+2.6%), Emami(+1.9%) and Tata Consumer(+1.4%) also closed with bullishness.

L&T Finance Holdings(+3%) moved up after being in discussions with HSBC to sell its mutual fund arm. Other NBFCs including CholaFin(+4.%), MFSL(+4.2%), Shriram Transport Finance(+4.1%) also gained.

SSWL(+2.7%) said that it has signed an agreement with Tata Steel Long Product (TSPL)(+2.2%) for the rolling of round steel bars of various grades for a period of 3 years.

IEX(+10.6%) rallied to fresh all-time highs. Take this as an indication to remain invested in the power sector for the long term. Similarly, a rally was seen in BSE(+8.9%), CDSL(+4.6%), MCX(+1.9%) and CAMS(+4.4%). 

Auto stocks rebounded after a poor last week with Maruti(+2.6%), Tata Motors(+2.1%) and M&M(+2.1%) closing more than 2% up in the day. Also, Maruti Suzuki is set to increase prices for 4th time in 2021. You can read this article to get to know about price hikes in the industry.

Angel Broking(+10%-UC), Motilal Oswal(+5.4%), Edelweiss(+5%), ICICI Securities(+3.3%) were among many broking firm shares which moved up.

Healthcare stocks including Max Health(+7.7%),  and Aster DM(+10.1%) moved up in the day. Apollo Hospital(+0.16%) and Fortis(-3%) were in the green but fell near closing.

Sona Comstar(+8.1%), Bharat Forge(+4.1%), Sandhar Technologies(+10%) moved up on reports of tesla in talks with firms for parts supply

Info Edge(+2.8%) share prices have crossed Rs 6,000. The stock is up nearly 20% since Zomato got listed on the market with amazing listing gains. Zomato(+7.1%) also moved up today.

Trent(+4.5%) and IndiaMart(+9%) gained in the day along with Bliss GVS(+8.2%) and CanFin Home(+7.8%) from the Nifty 500 group.

Markets Ahead

Definitely a bullish day across the whole market with most sectors closing in the green. Only IT stocks saw slight profit booking after their stellar returns in August.

Finance Minister Nirmala Sitharaman is expected to announce a loan guarantee scheme for Covid affected sector tomorrow. Keep an eye out for this.

Markets have given a stunning rally in the month of August, reaching levels near 17,000 with incredible speed and no Foreign Institutional Investors buying.

In fact, FIIs have been net sellers in the market so far in August, let’s see how they do in the last two days.

Reliance has continued its rally along with HDFC Bank and we are glad some of you could take part in the move.

The auto sector has also started to move back up, as we expected on Friday.

How long do you think Domestic Institutional Investors can keep up the buying? Fresh mutual funds inflow are indicating heavy retail participation. Do you feel there will be a correction soon?

In the U.S, every dip has been bought by investors pushing back their index – S&P 500. So if Nifty falls, I do you expect such a reversal too. Maybe if everyone feels that way, it won’t fall. Let us know in the comments section what you think!