Today’s Market Summarised

Nifty opens the week with heavy consolidation.

Nifty opened flat at 15,850 and was volatile. It tried to move up but could not cross Friday’s high and started falling. After some more consolidation, the market again started falling. Nifty closed the day at 15,824, down 31 points or 0.20%.

Bank Nifty opened at 34,880 with a gap-down and was very volatile. But with power from ICICI Bank, the index started moving up and even crossed Friday’s highs. This was not sustained and the index moved back down. Even though it tried to stay above 35,000 level, Bank Nifty closed below it at 34,949, down 85 points or 0.24%.

Most sectoral indices closed with consolidation. Nifty Realty moved down 0.96%, while Pharma gained 0.63%.

Asian markets mostly closed in the red. European markets are all trading slightly in the red right now.

News Picks

SBI Life(+2.49%) shot up near market close after reporting Q1 earnings. Q1 consolidated net profit came at Rs 223 crores against Rs 391 crores last year(-42%). It closed as Nifty 50’s top-gainer.

Bajaj Finserv continued gaining momentum, closing 2.45% up.

Jindal Steel opened nearly 10% up and after the profit booking closed 1.5% up in the green. Yesterday, the company got a revised bid from Worldone for its thermal power subsidiary for Rs 7,400 crores. The deal will help reduce debt.

Generally, metal stocks remained strong. Hindalco(+2.1%) and Tata Steel(+1.2%) closed in the top gainer’s list of Nifty 50, while SAIL(+2.4%) and Vedanta(+1.6%) also moved up. JSW Steel however closed as the top-loser, down by 1.8%.

Vedanta moved up 1.6% after reporting net profit at Rs 4220 crores vs Rs 1033 crores last year vs Rs 6432 crores last quarter.    

Pharma majors Sun Pharma(+1.3%) and Cassiopea SpA signed license and supply agreements for Winlevi cream in the US and Canada. WINLEVI is used on the skin to treat acne.

Navin Fluorine reported Q1 net profit at Rs 55.9 crores, down 25% from last quarter. The stock closed 5.9% down.

M&M Financial fell after reporting a net loss of Rs 1,573 crores vs profit of Rs 432 crores last year. The stock closed 5% down.  

MahindCIE closed 9% up along with BSE(+8%), ICIL(+9.3%), Alkyl Amine(+9.5%) and CapliPoint(+19.2%).

Kotak Bank reported a Q1 standalone net profit of Rs 1640 crores vs Rs 1244 crores last year. The stock closed 1% up.

Alembic Pharma moved down 3.8% after reporting a 45% YoY fall in net profit to Rs 164 crores for Q1.

Apollo Hospital(+4.6%) and LalPathLab(+2.6%) shot up to fresh all-time highs.

Markets Ahead

Nifty opened the day with volatility from Reliance and ICICI Bank after their results were published over the weekend. Even though it was taken well by analysts, markets punished Reliance and the stock pulled down Nifty down by 23 points.

In the usual case, when Nifty consolidates we see that the midcap and smallcap indices rally. That is how we know that there is still some bullishness in the market. Today both of them consolidated.

The earnings reports are splitting up investors, as financial stocks fail to impress. The market is also feeling that the results are not living up to the current valuations of the companies.

Nifty will continue to consolidate unless it can close above the all-time high level strongly. On the lower side, a close below 15,500 would indicate weakness for the short-term.

Watching steel stocks gain back momentum is interesting, keep an eye out for the sector. Oil stocks, especially large-caps like ONGC have lost steam as crude oil prices cool down.

Hope you had a great start to the week! How did it go for you? Let us know in the comments of the marketfeed app!