Today’s Market Summarised

Once again a day of consolidation in the market, but with a bearish bias.

Nifty opened the day at 15,293 with a 100-point gap-up. But this level was not sustained, and the index fell slowly from there the whole day/ Between 10 am and 1 pm, Nifty consolidated in a 50-point zone but soon saw a fall. After the huge volatility, Nifty gained back to close the day at 15,208, up 10 points or 0.07%.

Bank Nifty opened at 35,124 and fell sharply. HDFC Bank was pulling the index down the whole day and by afternoon others joined in. Even with the fall, the index managed to close above yesterday’s low of 34,500. Bank Nifty fell to close at 34,662, down 281 points or 0.81%.

Nifty PSU Bank(-1.3%) fell the most today. Nifty Media(+3.17%) was the best performing sectoral index. All other indices consolidated without giving even a 1% move.

All Asian markets closed in the green, signalling the gap-up for Nifty today. Meanwhile, European markets are trading flat.

News Picks

Asian Paints broke out above its all-time high and closed 3.3% up as Nifty’s top-gainer. The stock has gained 14% after announcing its results on May 12.

Auto stocks including Eicher Motors(+2.89%) and TVS Motors(+2%) were mostly up in the day as metal prices(which are an important raw material) cooled down throughout the world. Analytics firm Jefferies also expects the decline in Covid-19 cases indicates to a revival in economic activity.

PVR(+3.43%) and Inox(+2.5%) closed with gains in the day. EIHotel(+3.21%) and Indian Hotels(+3.3%) also gained in expectation of lockdowns ending soon.

Also, there were reports that India is planning a stimulus package to support economic growth. The proposal is mainly to boost the aviation, tourism and hospitality industries.

Indigo(2.5%) and SpiceJet(+1%) closed in the green with gains.

Amaraja Batteries(-6.32%) opened with a big gap-down and fell 2% further. The stock fell after car battery maker Clarios announced that it would sell 1.71 crore shares or a 10% stake in the company by a block deal.

Financial stocks which gained sharply last week saw profit booking. HDFC Bank(-2.05%) was followed by Axis Bank(-1.3%) in Nifty 50. CholaFin(-4.3%) and M&MFin(-3.5%) saw a good fall in the day.

LTI launched an operational technology transformation solution with American Software company – ServiceNow. The stock moved to close 1.1% up.

BPCL may sell some stake in IGL & Petronet LNG to shed promoter status. Both IGL and Petronet shares saw a sharp fall from their day-highs.

TTK Prestige reported an 895% YoY increase in net profit for Q4 to Rs 85.4 crores. A 2% increase in net profits was seen compared to last quarter. The stock closed 14% up.

Alkem Lab reported Q4 net profit as Rs 240 crores, down 46% compared to last quarter. The negative result impact was huge and the stock fell to close 3% down.

Colgate Palmolive(ColPal) gains 5% to hit record high following an upgrade by UBS.

CONCOR continues the gaining momentum following Land Licensing Fee resolution. Closed 5.3% up.

Ramco Cements Ltd reported a 51.08% YoY increase in consolidated net profit to Rs 216.16 crore for the quarter ended March (Q4).  Stock is down by 2.7%

Balaji Amines Ltd reported a 174.17% YoY jump in consolidated net profit to Rs 84.50 crore for the quarter ended March (Q4). Stock is down by 3.4%

Markets Ahead

Sputnik Lite, the vaccine which needs only a single shot, is undergoing 3rd phase of clinical trials and will be produced in India. Also, Pfizer said they are in discussions with the Indian Govt for supplies of the Covid-19 vaccine. A bit hard to understand how even after more than a month of lockdown in multiple states, the vaccine shortage is nowhere near over.

Only 3% of India’s population is fully vaccinated, whereas in the USA is at 40%.

Markets have already factored all this in and look like Nifty is setting the stage for more rally. Even the intraday fall was gained back and Nifty managed to close above 15,200. This is a good sign for the market.

15,300 is developing as a good resistance for the week. And the markets are expected to close in and around the 15,200 mark for this Thursday. 

What we saw today was majorly a fall from those stocks which have outperformed last week. I feel that the bullishness still continues for the medium term as long as 14,900 support is respected.

A higher vaccination rate along with re-opening of the economy will push Nifty further up in the coming weeks. Can keep a watch on Pfizer stock for more rally, it is seeing some accumulation around in the current zone.

Catch you all on The Stock Market Show tonight!

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