Today’s Market Summarised

Markets open the week in green with most sectoral indices closing with gains.

Nifty opened the day at 15,796 with a gap-up and quickly moved ahead. The index consolidated between 15,835 and 15,800 for almost the whole day and moved slightly up near the end. Nifty closed the day at 15,834, up 112 points or 0.71%

Bank Nifty opened at 35,016 and was slightly more bullish than Nifty. Consolidation was seen near 35,100 and just afternoon, there was good strength in the index. Bank Nifty closed higher at 35,212, up 402 points or 1.16%.

Nifty Realty(+2.73%), Nifty Metal(+1.16%) closed with good gains. Banking and NBFC stocks also did well, with just Nifty IT and Nifty Pharma closing flat.

Asian markets closed mixed in the day. European markets are all trading flat.

News Picks

With aluminium prices moving back after China tried to pull them down, stocks related to the metal moved up. Hindalco(+3.5%), National Aluminum(+3%) and Vedanta(+3.9%) moved up in the day.

Rating agency CLSA said it expects the margin for Tata Steel to improve further from the high of Q4 and it maintained a Buy rating on the stock. The stock closed 1.8% up. Other Steel stocks including JindalSteel(+1.5%) and SAIL(+1%) also closed with gains.

With SBI’s Chairman Dinesh Kumar Khara saying that the valuation of SBI(+1.9%) and it subsidiaries can be better, the stock closed in Nifty 50’s top gainers’ list.

ONGC(+2.1%) said it has earmarked Rs 30,000 crore towards capital expenditure this year. Don’t forget that crude oil prices have also been increasing.

Bank Nifty remained generally strong with many banks reporting their Q1 loans and deposit growth numbers. Out of everyone HDFC Bank(+1%) reported the best growth of loans at Rs 11.48 Lakh Crores, up 14.4% YoY and Deposits are up 13.2% YoY.  

Tata Power moved 4% up after JPMorgan’s target of Rs 150/share.

India Pesticides listed at Rs 354.70 vs issue price of Rs 296, a 19% increase. The stock failed to extend listing gains but closes higher than the issue price. The stock closed at Rs 343.15.

Heranba Industries received Environmental Clearance from the Ministry of Environment for expansion of pesticides intermediates, fungicides, herbicides and insecticides. The stock closed 5.3% up.

ICRA reaffirms the rating of Ramkrishna Forgings. The outlook was revised from stable to positive. The stock closed 4% up.

Tata Communications says its bringing a‘ Virtual Video-Assisted Referee’ solution for ‘Anywhere Refereeing’. The stock closed 2.4% up

Tejas and ITI said to get 4G services letter of Intent (LoI) from BSNL. Tejas closed in the 5% Upper Circuit, while ITI closed flat.

IEX said trades in the power market has reached 7,093 Million Units in June, a 48% YoY growth. The stock closed 2.2% up. 

NMDC(-4.2%) and Adani Ent(-1.9%) saw selling pressure in the day.

Realty stocks gained with Godrej Prop(+3.9%), IBREALEST(+5.7%), Sobha(+3%), Prestige(+1.5%),DBL(+2.4%), DLF(+3.4%), JP Infra(+4%) closing in the green.

HFCL promoter releases pledge on 91 lakh shares or 7.1% stake on July 2nd & July 3rd. The stock closed in the 20% Upper Circuit. It has moved 60% in the last two weeks. 

ITD Cementation bags order worth Rs 585 crores. The stock closed 6% up.

Vedanta expects IPO for its power arm Sterlite Power Transmission by the end of 2021. VEDL closed 4% up. 

M&M Finance approves NCD’s worth Rs 132 crores. The stock closed 1.9% up.

MCX signs a Memorandum of Understanding (MoU) with European Energy Exchange for electricity derivatives. The stock closed 1.5% up.

Godrej Consumer Products said expects higher sales growth, supported by strong volume growth and calibrated price increases. The stock closed 3.8% up.

Delta Corp said that Casinos in Goa will remain shut as the state government extended the lockdown till July 12. In Sikkim, casinos will resume as the state govt allowed reopening. The stock closed 4% up

Markets Ahead

HDFC Bank, Reliance, Infy and ICICI Bank contributed 55 points to Nifty’s 112 point rally. Midcaps and smallcaps also closed with good gains in the day.

Starting Wednesday, TCS will kick off the results season for Q2. These results are expected to be the next trigger for Nifty to move.

Nifty has managed to close above the 15,800 zones with some power. Bank Nifty has closed above 35,000 and 35,200 so both indices are showing some strength.

Once again, as we discussed on Friday, the 15,630-15,670 zone will continue as good support for Nifty this week. The all-time high of 15,900-15,915 will have to be crossed without a gap-up, to show some bullish confidence.

The power showed today by banks, realty and metal stocks show confidence in the economic re-opening of the country. Hoping this will sustain as Q2 results start coming out.

Catch you all on The Stock Market Show tonight!