Today’s Market Summarised

NIFTY ended yet another week with gains, its 7th consecutive week. That is more than 40 trading days! What a rally it has been. Nifty opened the day with a gap-up near yesterday’s high at 13,771. The level was not sustained and it fell sharply to bottom out near 13,660 just near 10 am. From there, it went up and consolidated. When the European markets starting moving up after opening, the index once again tested its all-time high. Nifty closed at 13,760, up 19 points or 0.14%.

Bank Nifty opened the day at its day high of 30,854 and started falling. As we talked about in the pre-market report, Bank Nifty fell sharply under 30,800 and crashed till 30,370. This was very similar to Nifty’s fall, but the bounce-back was not similar. Bank Nifty closed at 30,714, down 132 points or 0.43%.

Nifty IT was the top-performing sector of the day. Pharma stocks did well along with it. Private banks fell the most today.

While Asian markets were all trading in red, European markets are mostly in green.

News Picks

IT stocks performed the best throughout the day, after positive comments from multiple company heads including TCS and Accenture. Infy, Wipro and HCLTech showed up in the top-gainers list, while others saw profit booking towards the end of the day.

Pharma stocks continue to rise as companies consistently work on Covid-19 vaccine amid rising positive cases and have started the clinical trials. Dr Reddy’s, manufacturer of Sputnik vaccine, lead the rally and was the top-gainer.

IndusInd Bank was the top loser of the day, after falling more than 3%. Financial stocks were looking very weak towards the beginning of the day. Glad to have caught this fall on Telegram @fundfolio.

RBL Bank also fell close to 4% today. An interesting observation is that RBL Bank and IndusInd Bank are currently the two banks which provide the highest interest rate on FDs.

While many sugar stocks fell or stayed flat today, DCM Shriram went up more than 11%. Companies which focus more on ethanol production, are more likely to go up. Check out this article by marketfeed from last month, about the sugar stock rally.

Global beverages major Coca Cola cut almost 17% of its workforce yesterday citing falling revenues due to Covid-19. In the other side of the world, PepsiCo’s bottler Varun Beverages fell more than 2% in reaction to the news.

Page Industries continued its uptrend going up close to 3%. The stock has broken many bearish trends to go up this week.

With the aviation data showing a dip in the market share of both Indigo and SpiceJet, shares of both airlines fell.

Markets Ahead

HDFCs fall disappointed me in the morning today, as my expectation was it to go up. But the jump towards the end of the day was definitely a welcome one. It pushed NIFTY up, as well. NIFTY has established 13,780 range as a strong resistance, and this level can be broken in the coming week. Bank Nifty’s 30,800 level will be important, while it tries to move back up.

Realty was the week’s best performing sector. Last week’s PSU Banks were the worst performers this week. Stocks like Titan continue to hit all-time highs. Keep watching for a slowdown or trend reversal.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.