Today’s Market Summarised

Nifty ends slightly higher, continuing its consolidation for the 6th trading day.

Nifty opened the day at 17,425 with a gap-up and tried to move up. Almost perfect resistance was taken near the all-time high and profit booking brought the index down slowly. The entire gap-up was covered and Nifty closed the day at 17,380, up 25 points or 0.14%.

Bank Nifty also opened the day with a gap-up at 36,664 but quickly found resistance. Just like Nifty, the index slowly moved down throughout the day. 36,500 support was tested once again and Bank Nifty closed the day at 36,613, up 141 points or 0.39%.

Nifty Media(+14.4%) showed off in the day with power from ZEEL’s rally. All other sectors consolidated, with Nifty Auto(+0.88%) and Nifty IT(+0.86%) giving small moves.

Asian markets closed mixed in the day. European markets are also trading mixed currently.

News Picks

Former Nifty 50 stock, ZEEL(+40%-UC) rallied with news that top investors seek removal of CEO Punit Goenka. The stock kept on moving up till the last minute of trade.

This gave power to all Nifty Media companies and TV18(+10.25%), DishTV(+9.8%), Network 18(+6.6%), SunTV(+4.8%) and DB Corp(+6%) closed with gains.

Other ZEE group companies including ZEE Learn(+20%-UC) and ZEE Media(+5%-UC) also moved up.

Indusind Bank(+4%) closed as the top-gainer of Nifty 50 with CNBC saying that the Indian Government is considering a moratorium for telecom spectrum dues. This was considered after major banks including SBI appealed to the government to relax payments from Vodafone Idea. IndusInd Bank has a considerable amount of outstanding loans to Vodafone Idea.

For the same reasons, Vodafone IDEA(+9.4%), Indus Tower(+3.1%) and IDFC First bank(+2.3%) also closed with gains.

HCL Tech(+2.5%) rallied to fresh 52-week highs after announcing a strategic partnership with Korea’s HANCOM to advance technology solutions and for overseas expansion. The company also secured a multi-year contract with biotech firm Genmab to support its IT infrastructure operations globally.

Auto stocks saw a strong rally in the morning on news that the Cabinet may consider the Production Linked Incentive(PLI) scheme for the Auto & Auto component sector in tomorrow’s meeting. 

Mothersumi(+4%), Amara Raja Batteries(+2.6%) led the gains in a good day for Auto stocks. Tyre stocks CEAT(+2.2%), Apollo Tyre(+2.8%), JK Tyre(+3.9%) also gained.

Tractor manufacturer Escorts(+6.3%) moved up after partnering up with IndusInd Bank for financing customer loans.

Electric Vehicle Linked stocks Greaves Cotton(+5%), Tata Motors(+1.6%), Olectra Greentech(+5%-UC) and JBM Auto(+7%) also gained.

Larsen and Toubro(+1.6%) is trying to give a breakout and can be watched. From the smallcap space, IOLCP(+6.5%) can be watched.

Vijaya Diagnostic opened with a premium of 1.6% at Rs 540/share on NSE vs an IPO issue price of Rs 531. The stock closed at Rs 620, 16% above issue price.

Ami Organics opened with a 49% premium at Rs 910/share on NSE vs issue price of Rs 610. The stock closed at Rs 935.

After the 30% rally in stock price last month, the government is likely to sell its shares in HAL through OFS(Offer For Sale) this month, looking to sell a 0.15% stake. Hindustan Aeronautics Limited said that they have a stable financial position with consistent growth year on year.

Other defence-related stocks held by the government – BEL(+3%), BHEL(+5.1%), BEML(+6.7%) and Cochin Shipyard(+2.2%) moved up. 

Godawari Power(+5%-UC) approved the proposal for a share split in the ratio of 1:2.

PEL(+3%) moved up trying to gain back from the August fall.

With crude oil prices moving up internationally, OIL(+2.6%), HPCL(+1.3%), IOC(+1%) and ONGC(+0.73%) closed in the green.

Zomato(+0.66%) touched a fresh all-time high but fell after co-founder Gaurav Gupta quit. The stock fell more than 10% from the day high but gained back and closed flat. The stock needs to be watched further to see how it reacts to the GST Council ready to consider food delivery apps as restaurant services.

The India Government may provide incentives for Drone Makers in the coming meetings. ZEN Tech closed at 5% Upper Circuit. The stock is up 165% in the last 30 days.

Cabinet to discuss PLI for surfactants, dye pigments up to Rs 5.000 crores soon. Galaxy Surfactants(+9%) and Aarti Surfactants(+16%) moved up.

ITC(+0.9%) silently hit a 3-month high and closed with small gains. The stock is long overdue for a rally.

Markets Ahead

Nifty has formed a red candle in the daily charts for the 5th time in the last 6 trading days.

Bank Nifty is also trying to take 36,500 as support once again. IndusInd Bank and Kotak Bank are trying to keep the index steady.

India’s August Wholesale Prices Inflation came out at 11.39% vs 11.16% last year. It was still better than the estimate of 11.78%. Investors around the world are looking at U.S. Inflation data, set to be out today.

Expecting volatility in the Indian market tomorrow if the U.S. markets react well to the inflation data. 

Did you see ZEEL’s rally to touch fresh 52-week highs? Did you catch the fall in Nifty from the all-time high? Let us know in the comments of the marketfeed app!