Today’s Market Summarised

Nifty continues to see selling pressure every time it tries to move up.

Nifty opened the day at 15,776 and tried to move up slowly. Till noon, the index moved up but took resistance near yesterday’s high. Afternoon, the index started falling sharply nearly 130 points even breaking below yesterday’s low. Nifty closed the day at 15,721, down 27 points or 0.17%.

Bank Nifty opened at 35,030 and struggled to keep above the 35k mark.  At 11 PM, 35,200 was taken as good resistance. Slowly, a 500-point fall was seen from the day-high to day-low. Bank Nifty closed the day at 34,772, down 240 points or 0.68%.

Nifty IT(+0.63%) was the only index to close in green. All other sectors closed in the red, but with less than a 1% move.

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

News Picks

Coal India(+1.5%) gained in the day after announcing mining fleet decarbonisation including LNG conversion.

Cement stocks fell in the day with ShreeCem(-2.24%) being Nifty 50’s top loser. ACC(-1.8%), UltraCemCo(-0.7%) and others also fell.

Small banks including AuBank(-3.8%) and IDFC First Bank(-2.9%) fell sharply in the day. Bandhan Bank(-1.5%) also fell.

PSU stocks REC & PFC moved up after Cabinet approved Rs 3 lakh crore power distribution scheme. Both the stocks closed 3.8% up. 

Indian Navy signs Memorandum of Understanding (MoU) with BEL for technology incubation forum. The stock closed 1.9% up. 

IIFL Finance approved allotment of NCDs aggregating up to Rs 500 crores. The stock closed at 5% upper circuit.

Manappuram Finance gained nearly 3.5% after Bank of America(BofA) started coverage of the stock

Cummins India closed 5.7% up as the company makes its transition to new CPCB-IV emission norms. Also, brokerages are positive on the stock.

IT Stocks Gain As Rupee Remains Weak Against Dollar; Nifty IT is up nearly 1%.

IT stocks Tata Elxsi(+7.5%) and Happiest Minds(+5.8%) each hit fresh all-time highs today. Infy(+1.14%) closed in the top-gainers list.

NITI Aayog recommends Central Bank of India & Indian Overseas Bank for privatisation. Both the stocks moved more than 8% up. 

IRCON reported Q4 standalone net profit at Rs 170 crores, up 66% compared to last quarter. The stock closed 1.8% up. 

Uflex shares jump 19% after profit doubles in Q4. Recently listed MTAR gained 13% today.

Markets Ahead

Nifty continued to gain for the 5th quarter, straight after March 2020 closed. From April 2021 to June, Nifty has gained nearly 7%.

Even though we saw a net consolidation in the day, midcaps and smallcaps closed in the green.

According to reports, rural stocks are struggling on Covid and delayed monsoons are causing an issue.

As we had discussed yesterday, Nifty and Bank Nifty has fallen below 20-day moving averages it was taking support at yesterday. Bank Nifty even saw a sharp fall after crossing yesterday’s low.

Will be watching for Nifty in its struggling zone of 15,750-15,800 for tomorrow’s expiry. Just like last week, this zone will be critical for the index.

Bank Nifty will be watching 35,050 in the upper side and 34,450 on the lower side.

Hope you had a great day in the market!

Catch you all on The Stock Market Show tonight!