Today’s Market Summarised

Nifty sees a day of volatile consolidation on the first Thursday of October.

Nifty opened the day with a big gap-up at 17,814. After moving sideways for nearly 3 hours, the index tried to give a breakout but found resistance near 17,850. With an afternoon fall, Nifty closed the day at 17,790, up 144 points or 0.82%.

Bank Nifty opened the day at 37,910 with a gap-up and moved down. Even with the help of many private bank stocks, the index of banks could not move up and test the 38,000 resistance. After trading in a 280-point zone, Bank Nifty closed the day at 37,753, up 231 points or 0.62%.

All major sectoral indices closed in the green today. NIFTY REALTY(+6.1%) and NIFTY AUTO(+4.3%) flew up while NIFTY IT(+1.7%) closed in the green.

Almost all Asian markets are closed in the green today. European markets are all trading in the green currently, with more than 1% gain each.

News Picks

Tata Motors(+12%) closed as Nifty’s top-gainer. Morgan Stanley has raised the target to Rs 448/share. Tamil Nadu CM Stalin also held a meeting with Tata Sons Chairman N Chandrasekaran and is believed to have invited him to take over the Ford plant in Chennai.

All stocks in the Nifty Auto closed in the green with M&M(+5.2%), Maruti(+4%) and Eicher Motors(+3.3%) also closing in Nifty’s top-gainers. M&M said that XUV 700 registered 25,000 bookings in 57 minutes of opening. Mothersumi(+5.4%), Ashok Leyland(+4.6%) also outperformed.

Titan closed 10.6% up after reporting a strong recovery in demand in the July-September quarter and saying that its sales in most of its divisions have either reached above or close to pre-pandemic levels.

IT stocks jumped in the day ahead of the Q2 results season. HCL Tech(+2.4%) and Tech Mahindra(+2.2%) closed among Nifty’s top-gainers. CoForge(+2.7%), Mphasis(+2.4%), TCS(+2.1%) and Mindtree(+2%) also gained in a day where all Nifty IT stocks closed in the green.

ONGC(-4.5%) fell along with Coal India(-1.1%) after many days of rally and closed as top-losers in Nifty 50. GAIL(-4%) also fell sharply.

Bandhan Bank(+7.4%) continued its breakout in the 1-day charts. Goldman Sachs has maintained a ‘buy’ rating on Bandhan Bank with a target price of Rs 443, which suggests a 48% upside potential from current levels.

Textile stocks moved up after the government approved 7 textile parks over the country. Page Industries(+9.6%), Lux Industries(+1.6%), Filatex(+6.9%), KPR Mill(+1.8%) and Dollar Industries(+7.7%) did well in the day.

Most Real estate stocks hit fresh 52-week highs on the back of good volumes. The demand in the industry is returning as per reports. Read this article about the real estate boom in India. DLF(+3.5%), Godrej Properties(+8.3%), Sobha(+16.6%), Oberoi Realty(+9.3%), Prestige Estates(+5.9%), Phoenix Mills(+3.7%), Brigade(+5.3%), SunTeck(+4%) closed in the green.

NHAI(National Highways Authority of India) says it may exceed the project award & road construction target set for FY22. Benefiting companies will be L&T(+1%), IRB Infra(+1.4%) and DBL(+6.7%).

Chambal Fertilisers(+9.9%) gave a move today while other chemical stocks consolidated.

MCX(+5.8%) moved up after launching futures trading on MCX ENRGDEX. MCX ENRGDEX is India’s first real-time energy Index.

Currently rallying stocks PEL(+1.6%) and IRCTC(+5.1%) hit fresh 52-week highs. Piramal Enterprises board approves demerger of pharma operations. For every one share held in Piramal Ent, investors will get 4 shares of Piramal Pharma. 

Kalyan Jewellers(+13.3%) moved up after announcing a 60% rise in its Indian business revenue for Q2.

Ramkrishna Forgings(+4%) signed an MoU for the development of EV powertrain components with a U.S based technology partner. Sona Comstar(+12.3%), Bharat Forge(+2.75%) and Mothersumi(+5.4%) were among the other auto ancillary stocks to rally.

Tyre stocks – MRF(+3.3%), Apollo Tyres(+2.6%), JK Tyre(+1.3%), Balkrishna Industries(+1.7%) closed in the green along with auto stocks.

Muthoot(+2.8%) and Manappuram(+5.2%) gained in the day with Manappuram giving a breakout in the daily charts.

GRSE(+8.5%) shot up after announcing an agreement with Syama Prasad Mookerjee Port, Kolkata for 15 years. 

Consumer electronics stocks moved up led by Voltas(+4.3%). Havells(+1.8%), Blue Star(+1.9%) and Whirlpool(+5.4%) also moved up. These stocks usually do well near the Dussehra festive season.

Markets Ahead

Auto stocks were on a bullish trend with Federation of Automobile Dealers Association publishing retail sales numbers for September.  Passenger vehicles were up 16.32% compared to last year, even though total vehicle retails moved down. Along with this, the current festive season of Dussehra and Diwali are generally good for auto manufacturers.

We can expect the breakout to continue in auto stocks if the market stabilises.

Nifty gave a pullback as U.S. markets stabilised yesterday, but moved up easily to 17,800. However, the level of 17,850 was not sustained and Nifty continues to consolidate. Historically, the month of October has always been good for the market. Can expect a bullish move across the market as a rebalancing of foreign funds after the September quarter causes buying.

There are high expectations from the TCS results tomorrow, with a projected Profit increase of nearly 35%. We can expect some volatility in the entire IT index tomorrow.

Bank Nifty’s immediate support is at 37,400 and then at 37,280. Resistances at 38,000 and 38,150 can be watched. 

How did the first Thursday of the second half of the financial year go for you? Let us know in the comments of the marketfeed app!

Meet you all on The Stock Market Show at 7PM on YouTube!