Today’s Market Summarised

A day of fall generally in the market, with most heavyweight stocks closing below their morning levels.

Nifty opened the day at 15,049 and was clearly weak. It fell nearly 100 points in the first 15 minutes of the day. This fall was gained back, and Nifty moved in a 60-point zone for more than 4 hours! Just after 2pm, large selling pressure took Nifty down to 14,900 levels. Nifty closed the day at 14,906, down 124 points or 0.83%.

Bank Nifty opened at 33,748 and could not stay above 33,800. Till 1 pm, the index was trading in a 240-point zone with 33,600(yesterday’s low) as support. When this level was broken, we saw a further fall till 33,280 levels. Bank Nifty closed at 33,334, down 350 points or 1.04%.

Nifty Metal(down 3.2%) was once again the worst-performing sector of the day. Nifty Realty closed 1% up, with some bullishness in the sector. All other sectors moved less than 1%.

Major Asian markets closed flat in the day. All European markets are also trading flat at the time of our market close.

News Picks

The recovery in US markets and SGX Nifty was not enough to keep the bulls happy today. Markets fell sharply near the end, after consolidating all day.

M&M closed as Nifty’s top-gainer, as the stock continued its bounce back from its support at Rs 740. A new base-level Thar is also expected to launch soon, boosting sales for the company.

Shares of Cipla closed 2.2% up after the company announced a new Covid-19 testing kit called ViraGen. It is Cipla’s third product in the Covid-19 testing segment.

Only 3 stocks from Nifty 50 closed with more than 1% gains. Meanwhile, Nifty Metal stocks continued to heavily fall.

Tata Steel(down 5%), Hindalco(down 4.5%) and Coal India(down 3.5%) led the table of top-losers in Nifty 50. With global commodity prices falling, such a fall was actually expected. SAIL(-5.56%) and JindalSteel(-4.93%) also fell heavily in the day.

Shares of Auto-ancillary maker Bosch closed 7.2% up in the day, after the company reported a 495% YoY increase in net profits to Rs 483 crores.

Fertiliser stocks opened with huge gap-ups today after the Central Govt increased fertiliser subsidy by 140%. Stocks including National Fertilizers(up 6%), RCF(up 4%) and Chambal Fertilisers(up 2.5%) closed in the green. Some stocks also saw profit booking, with UPL closing 1.87% down.

With asset quality getting better and profits doubling to Rs 276 crore for Q4, Indiabulls Housing Finance gained 8% in the day. Sister company, IndiaBulls Real Estate also gained 8.7%.

With confidence from this rally, Chola Fin(up 4.77%) and M&M Fin(up 3.9%) gained in the day. 

Cement stocks mostly closed in the green, but India Cements gained nearly 10.5% in the day.

Shares of Ircon International gained 5% in the day after a 1:1 issuance of bonus shares increased the demand for the stock.

Markets Ahead

Markets closed just above 14,900 for the day. The high resistance at 15,100 observed yesterday was not even touched as markets kept falling through the day.

Even though the market was boring for the most part, the last 2 hours made it a special day for the bears. 

With the sudden fall in commodity prices worldwide, metal stocks continue their fall. Nifty Metal is nearly 8% down from May 10th levels but is at a good support zone. Let us see if this level will be respected in the coming days.

But still, 14,900 is a good level to be taken as a support. Expecting a bounce-back to 15,000 or up if global markets turn bullish again.

SBI announces its results tomorrow, and some stellar numbers are expected. Let us wait and see how the stock will react in the short-term, and long-term holders will be smiling anyway. Remember what happened when the Q3 results were announced?

Another interesting weekly expiry for Nifty. With tomorrow being the last trading day of the week, I am expecting some consolidation in the market. That is, if SBI does not make Bank Nifty go crazy.

Catch you all on The Stock Market Show tonight!