Today’s Market Summarised

Nifty closed in the green today, after multiple days of red candles. A proper day of consolidation in the market. Nifty trading in a range of 120 points in the day. After opening with a gap-down at 15,078, Nifty moved up in the first few candles of the day. It then traded sideways, in a 60-point channel for more than 5 hours, before slightly moving up. Nifty closed the day at 15,173, up 66 points or 0.44%.

Much of Nifty’s consolidation was courtesy of Bank Nifty. After opening nearly flat at 35,707, the index of banks traded in a 450 point range today. Just for context, the index moved more than 6,000 points last week. And today it moved less than 1/12th of that. Bank Nifty closed the day at 35,752, down 31 points or 0.09%.

Nifty Energy gained the most in the day, but this was surely because of Reliance’s rally. Nifty Metal gained by more than 1%, while only PSU Bank index fell more than 1%.

Most Asian markets remained mixed in the day, with most of them closing flat. European markets are also trading flat.

News Picks

Hindalco closed as the top-gainer in Nifty 50 after the company announced 90% increase in Net Profit Rs 2,021 crore in December quarter. The stock had been in an uptrend from the morning.

Reliance has jumped back in to the top-gainers list today gaining more than 4%. Was a clear trading opportunity since when the stock crossed Rs 2,000 level. The stock had been bearish for a long while, and with upcoming spectrum auctions, shares of telecoms are seeing a buzz in activity. 

Following the trend, Airtel closed nearly 1% up. Shares of Vodafone Idea closed more than 8% up. All 3 major telecom companies have confirmed participation in the upcoming spectrum auction.

EICHER MOTORS continued yesterday’s fall by closing as the top loser in Nifty 50. The market has not liked the fall in margins of the company in Q3 results.

Shares of Adani Ports continued their journey into all-time highs and found place in the top-gainer’s list today. The company has one of the highest EBITDA margins in a Nifty 50 stock, that means a lot of their revenue contributes to profits.

Shares of SunPharma jumped just after noon as SEBI accepted settling the charges against promoters by a whistle blower that Sun Pharma had diverted funds through related party transactions. It closed in the top-gainers list today.

Shares of MRF fell sharply after results of the company was announced. An increase of 116% in net profits to Rs 511 crore was reported for Q3. Revenue increased 14% to Rs 4,567 crore. I think the market was disappointed about a stock-split not being announced.

Shares of Route Mobile jumped 20% in the day. The share has seen a 30% increase in the last week as they aim for more growth in the American market. Affle India’s shares closed in the 10% upper circuit today, it has also gained 33% in the last week. Tanla Platforms also gained 6% from this positivity.

NSE acquired 26% and GAIL acquired 5% in Indian Gas Exchange, which is a subsidiary of Indian Energy Exchange. Shares of the IEX gained more than 11% in the day. Might see a lot more going ahead. Read about the company IEX here.

Markets Ahead

We had talked about how Nifty would not move much today. The increase in call option contracts at 15,200 was also pointed out. And Nifty has rightly closed below this mark.

MRF’s fall was one of the highlights of the day for me. Had personally wished to see the stock at Rs 1 lakh but had some fun shorting it. Although did not expect it to fall this much. A laughable Rs 3 dividend was declared for the stock which was valued at nearly Rs 98,000 earlier today. MRF closed at 90k for the day.

15,000 continues to be a good support and today 15,050 ranges saw a lot of buying. Reliance getting back into power was one of the reasons for this, otherwise Nifty would surely have fallen to 15,000 today. Reliance contributed more than 65 points to Nifty’s 66 point gain today.

IT stocks have been falling and may see a reversal soon. Also, SBI is forming a really nice consolidation pattern in its 5-minute chart. I am expecting a fall as a correction in the stock.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.