Today’s Market Summarised

With global markets going green, Nifty opened the day with a gap-up at 14,708 after Friday’s fall. It then went up to touch even 14,800 levels before falling to the day low again. Nifty then consolidated to close at 14,761, up 232 points or 1.60%.

Bank Nifty moved similarly in the day. After opening at 35,375 with a gap-up, the index struggled to go up and touched 35,581 then went back down. It even broke the day-low but went back up and closed at 35,296, up 492 points or 1.41%.

All sectoral indices closed more than 1% up in the day. Nifty Media went up 4.31% today mainly on the back of ZEEL and TV18Broadcast rally. Nifty Auto was up 2.38%.

All global markets were in green today, gaining between 1-2.5% after Friday’s sell-off.

News Picks

Power stocks resumed their rally today. PowerGrid closed at 6% up as Nifty’s top gainer. NTPC gained 1%. India’s power consumption grew just a bit, marginally up by 0.88% in February compared to last year.

RailTel shares again hit their 20% upper circuit in the day closing at Rs 145. Major funds including Morgan Stanley had picked up lakhs of shares after the company got listed on Friday. The stock looks good for long term, along with IRFC which went up 5% today.

JustDial shares are up 13% again today. Let us see what happens in the future. Another IndiaMart loading?

Cement stocks including Shree Cements and UltraTech Cements closed among Nifty’s top gainers. This happened as most companies increase the prices of cement in South India.

India VIX calmed down a bit, nearly 9% to 25.6 level. Market volatility seems to have cooled off a bit.

Shares of Bharti Airtel closed as the only losing stock in Nifty 50. It closed down 4.33% today, after a bulk sell of by Integrated Core Strategies of 3.7 crore shares.

RITES and Bharat Dynamics moved up 4-6% each after both companies received significant fresh orders.

Fertiliser stocks continued their dream rally today. UPL was up 5%, RCF was up 20% and FACT was up 20%. Deepak Nitrate went up 15% and National Fertilisers went up 20%. While addressing an audience, PM Modi said the time has come to increase the private sector’s participation in agriculture sector R&D.

New stocks were added to the F&O list today and many of them performed well. IRCTC was up 12% in the day, along with Deepak Nitrate at 15%.

Shares of PVC Pipe companies jumped after the 3rd price hike in last few months. Astral Poly gained more than 3% in the day. Supreme Industries up 2.5%.

Auto sales data has started to come out. Tata Motors reported a 54% YoY increase in total domestic sales 58,473 units, also their best passenger vehicles sales in nearly 9 years. Atul Auto reported a 45% total rise in sales to 1,613 units and stock price moved up 8%. Maruti(up 2%) and Ashok Leyland(up 0.8%) also posted good results.

TVS Motors reported 18% YoY increase in total sales and stock price went up more than 3%.

Sterlite Tech jumped more than 4% after the company won over Rs 730 crore worth of orders from West Asia and Africa.

Markets Ahead

Markets have rebounded today and closed with consolidation. The move from Friday would’ve scared many investors but a pullback was sure. The only question is will Nifty sustain these levels.

The HDFC twins can be looked at for reference. Just before the markets fall last week, they had begun their own falls. Today they were the ones pulling Nifty up by 54 points.

14,800 was taken as a good resistance today and can be watched in the upcoming days. 

US stimulus has been passed by the House and every single Democrat will need to vote for it to pass the Senate. This does not look easy. Meanwhile, shares of GameStop or GME had peaked again on Thursday and Friday last week. Seems to have cooled down now. Might become an issue for financial markets if it continues to move back up.

Auto sales data also looks promising, especially for India’s own Tata Motors and Mahindra. Auto ancillary stocks benefit whichever company posts good sales, and rightfully MotherSumi jumped 8% in the day. Bosch, MRF, Amaraja and Exide India also gained between 1.5-2.5% today. This shows a good trend and if the semiconductor issue is sorted out worldwide, these stocks will see a sharp rally.

Looking at dollar prices falling, waiting for it to help IT companies’ stocks rebound.

Catch you all on The Stock Market Show tonight!