Today’s Market Summarised

Nifty crosses the 16,000 mark and closes at record highs on a highly bullish day.

Nifty opened the day with a small gap-up at 15,950 and tried to move down. But the downside was quickly covered, and soon Nifty was testing the 16,000 mark. Once this was broken, further consolidation was seen around 16,050. And just in the afternoon, the index saw heavy buying and shot up to higher highs. Nifty closed the day at 16,130, up 245 points or 1.55%.

Bank Nifty opened flat at 34,743 and did not show much strength like Nifty till noon. The index consolidated just below the 35k mark, and shot up just after 2 PM with power from SBI and other major banks.  Bank Nifty closed near the day’s high at 35,207, up 500 points or 1.43%.

Most sectoral indices closed with strength. Nifty FMCG(+1.73%), Nifty Finserv(+1.68%), Nifty Auto(+1.56%), Nifty Bank(+1.43%), Nifty Pharma(+1.19%) and Nifty IT(+1.18%) gained well. Only Nifty Media(-0.8%) closed in red, while Metals + Realty closed flat.

Asian markets closed mixed in the day. European markets are all trading in the green as of our market close.

News Picks

HDFC(+3.7%) opened with strength and moved up after its results yesterday. The stock gave Nifty nearly 40 points in the day.

Titan(+3.8%) and SBIN(+2.6%) gained sharply ahead of their results announcement tomorrow.

Bharti Airtel(+2.6%) gained to reach a 5-month high ahead of its results today.

APEX(-1.6%) and Avanti Foods(-0.7%) closed in the red as China delayed the clearance of sea food exports from India.

Infy(+1.45%) has been selected by the Union Bank of the Philippines for Finance Digital Banking Solution Suite on Cloud.

RBL Bank closed 4% down after reporting weak Q1 results yesterday.

PVR closed 3.6% down after the Maharashtra government decided not to open movie theatres. Inox closed 2.2% down, also reporting a more than double loss for Q1 compared to last year at Rs 165 crores.

IndusInd Bank closed 3.45% up after RBI selected it as its agency bank for government related transactions.

Dabur India moved 2.5% up after reporting a 27% rise in Q1 consolidated net profit to Rs 437 crores from Rs 342 crores of last year. Nestle(+3.2%), Hindustan Unilever(+2.3%) and Godrej CP(+2.49%) also gained well.

Alkyl Amines(-3%) fell after reporting Q1 standalone net profit Rs 78.5 crores, down 18% QoQ.

Barbeque-Nation Hospitality moved 4.9% up despite reporting Q1 consolidated net loss of Rs 42.6 crores, but better than the loss of Rs 59.5 crores last year. They are also planning to add 20 new restaurants this year.

Investors dumped Vodafone Idea(-10.3%) shares after Promoter Kumar Mangalam Birla offered to give up his entire stake to any government entity to keep the telecom alive.

Adani Ports slowly moved up(+1.8%) after reporting Q1 consolidated net profit at Rs 1,310 crores, up 1.8% from last quarter.

Ashok Leyland(+4.7%) gave a multi-year breakout after publishing July Auto sales data.

Generally, Auto and ancillary stocks including CumminsIndia(+5.7%), JTEKTINDIA(+6.6%), Minda Industries(+5.1%), Bharat Forge(+3.4%), JK Tyre(+8%), Tata Motors(+2.3%) and more closed in the green.

Markets Ahead

Nifty was heavily bullish in the day. And as we ‘hoped’ yesterday, the index did indeed touch the 16,000 mark. Once this was broken, Nifty saw a heavy bullish momentum and our targets for 16,100 were easily reached.

The current setup in the index looks really bullish. 16,000 will be taken as an important support this week along with 15,900. Both were important resistances earlier.

Yesterday, the index closing flat despite the intraday fall apparently did have some strength behind it. Bank Nifty also crossed the 34,800 and 35,000 levels with ease.

The short-covering rally(short sellers squaring off creating more upward momentum) was what we saw today with nearly all Nifty 50 stocks closing in the green.

Tomorrow’s SBI results might just become a reason that Nifty is searching right now to rally more. If there is a relatively positive announcement, it can set the path for NIFTY to reach 16,300 and maybe even above that.

Definitely a day for Option Buyers, with Nifty breaking out after many months of consolidation.

Catch you all at The Stock Market Show sharp at 6:30 PM!