Today’s Market Summarised

Nifty moved the whole day with great volatility. With this, we saw the index flying to both sides. After opening at 13,394, the index went up to cross 13,400 and create the day high nearby. The index fell more than 110 points to take support at 13,320 and went back up around 100 points. Nifty closed the day at 13,392, up 37 points or 0.28%. This was flat to today’s opening.

Bank Nifty opened with a gap-up but made a big red candle. But soon enough the index went back up to take resistance near yesterday’s high. The index of banks then fell sharply to fall even till 30,000 levels and moved back up violently. Many stop-losses would have been hit for intraday index traders today. After failing to break yesterday’s high again, Bank Nifty closed the day at 30,261, up 50 points, or 0.17%.

NIFTY PSU Bank moved up with unbelievable bullishness today. The index closed more than 7% up to become the best-performer. Metals were the worst-performing sectoral index of the day.

Global markets are looking dull. European markets are all trading in red. Asian markets markets also closed mainly in red.

News Picks

After Canara Bank announced its Rs 2,000 crore Qualified Institutional Placement(QIP), share prices of the public-sector bank jumped almost 18%. Punjab National Bank shares jumped almost 15%. Bank of Baroda went up to close near 10% gains. Majorly these stocks pushed up the PSU Bank index.

Even with the bullishness in PSU Banks, all major private banks closed flat to red for the day and thereby keeping Bank Nifty flat.

YES Bank closed almost 10% up on hopes the stock will be upgraded to large cap category from mid-cap by mutual fund industry body, the Association of Mutual Funds in India (AMFI). Separately, the stock also got a boost from the lender’s likely plan for an asset reconstruction company (ARC). A report said that around Rs 40,000 crores of bad loans by YES Bank are proposed to be moved in to the ARC.  

Godrej Properties closed more than 4% up after the Mumbai-based real estate developer said it will develop a residential project in Whitefield, Bengaluru on an 18-acre land it bought.

Reliance shares moved up strongly in the first half of the day but settled down around 1.82% up. This came after Mukesh Ambani said Jio’s 5G rollout in next July would free ‘trapped’ 2G customers. Bharti Airtel shares closed more than 1% down.

UltraTech Cement shares went up more than 3%, continuing its bullishness from last week’s news of capacity expansion.

Markets Ahead

Funnily enough, I guess Nifty is all set to fly if Reliance actually closes above 2,000. But even with Mukesh Ambani’s strong comments on his company’s 5G roll-out plans, the stock cooled down. Private banks pulled down Bank Nifty, despite the continuing rally rally of PSU Banks.

Looks like index movements are cancelling out each other. Time to look into mid-caps and small-caps while the large-caps take a break? Or will Reliance’s movement in the upcoming days push NIFTY to fresh highs?

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