Today’s Market Summarised

The market was a bag of mixed emotions today. And another weekly expiry with some volatility!

After opening at 14,987 with a 120 point gap-up, Nifty flew up above 15,000 with ease. But the move could not sustain. In the next 2 hours, the index fell 230 points to reach back to yesterday’s levels. With 14,800 being taken as a support, the index tried to move back up but could not cross 15,000 again.

Nifty closed the day at 14,894, up 30 points or 0.20% for the day.

Bank Nifty opened with a modest 200 point gap-up at 33,959 and went up to 34,250 with ease. But profit-booking brought the index down 1000 points by 11 am. After this, the index of banks could not cross 34,000 again even though it tried to. Bank Nifty ended flat to yesterday’s close, at 33,714, down 8 points or 0.02%.

Nifty Metal again surprised the market by rallying up 4.53% in the day. Nifty Auto closed 0.99% down. No other index closed more than 1% up or down.

Major Asian markets mostly closed in the green. European markets are currently trading mixed.

News Picks

The Competition Commission of India (CCI) has cleared the mega-deal of Tata group to acquire BigBasket. Markets have already accounted for this in Tata Consumer Products’ price, so the stock price did not move much.

Morepen Laboratories has approved raising over Rs 433 crore through the issue of shares to Switzerland’s private venture capital firm Corinth Investment Holdings and Liquid Holdings. The stock gained nearly 9% today, and has now gained nearly 18% in the last 2 days.

Reliance Industries is reported to have held talks with Saudi Aramco to sell stake in petrochemical business. The stock rallied up sharply in the morning but came down and closed up by 1.2%. 

Hindustan Unilever reported a net profit of Rs 2,140 crores for Q4 compared to Rs 1,515 crore YoY, up 41%. Declared Rs 17/share dividend. The stock gained sharply after the announcement but closed flat.

Bajaj Auto reported their Q4 consolidated net profit at Rs 1,330 crore vs Rs 1,350 crore last year. The number was in line with estimates. Rajiv Bajaj stepped down as the non-executive chairman. The stock fell steeply from day-high and closed 1.4% down.

In fact, all two-wheeler stocks corrected after yesterday’s rally and can be seen in Nifty’s top-losers section below.

Nifty Metal moved up by 4.5% led by JSW Steel(up 9.6%), SAIL(up 8.7%) and Tata Steel(up 6.1%). Tata Steel has crossed the Rs 1,000 mark. JSW Steel is now India’s 25th largest company in market cap. Hindalco went up 2.63%. This is due to the increasing prices of metals across the world and China cutting import tariffs to 0% on steel, as we discussed yesterday.

After the good Q4 results yesterday, Bajaj Finserv continues its rally and is up by 6.5%. Bajaj Finance also moved up by 3.8%.

Markets Ahead

By closing just 30 points up today, Nifty has closed with gains in all 4 days of the week.

In regards to our discussions yesterday, FIIs turned net buyers and Nifty has touched 15,000. In fact, if Reliance did not have such a gap-up opening, Nifty would have only reached to 15,000 level and fallen.

And with regards to last week’s discussion, the upward journey for this expiry session is complete as we expected. Nifty has gone from 14,151 last Thursday to 15,050 today. That is nearly 900 points in just a week.

The 15k mark has been touched after nearly 45 calendar days, and I am guessing it won’t be too easy to cross. We will need more push and a return of Foreign Institutional Investor buying in thousands of crores, otherwise, DIIs will start booking profits at these levels.

Today’s high for Nifty and Bank Nifty can be watched out for as resistances in the coming days.

Selling pressure did come at the top and the index has now shown that 14,800 is a good short-term support for Nifty. 33,300 can be the next important support for Bank Nifty.

Stay safe, stay home and do wear a mask if you are going out.

Catch you all on The Stock Market Show tonight!