Today’s Market Summarised

NIFTY opened the day at 13,378 and struggled to move up. Retailers were surely trapped in multiple points of the day, with huge candle forming in NIFTY. After falling and testing 13,200 multiple times, Nifty finally started moving up just before European markets opened. After moving up more than 300 points from the day-low, Nifty closed the day at 13,466, up 137 points or 1.03%.

Bank Nifty opened at a gap-up and fell sharply throughout the day. It was the index pulling NIFTY down and reversed sharply after 1 pm to go up more than 700 points. Bank Nifty closed the day at 29,625, up 169 points or 0.58%.

Nifty IT was the top-performing sector of the day. Pharma stocks also performed exceptionally well.

Asian markets mostly closed in red today. European markets are all trading in green, after opening with a gap-down.

News Picks

IT stocks again shined throughout the day, with the market expecting great Q3 results to be announced in January. CoForge, HCLTech, Mindtree, LTI lead the charge.

After scoring a higher CDP score on climate change, Adani Ports jumped more than 5% in the day. The higher score could help the firm lower its borrowing costs.

Titan continued to move up after CFO, S Subramaniam, came out and said that Q4 will be as normal a quarter as it can be.

Westlife Development shares went up more than 2% after the company said McDonald’s delivery will be available through WhatsApp soon. They are the major franchisee for McD in India.

Shares of Indraprastha Gas Ltd went up more than 6%, after Delhi Industries were instructed to witch to Piped Natural Gas from the company.

Markets Ahead

NIFTY rebounded sharply from all of yesterday’s lows today. As was already discussed by us in yesterday’s show, it would have been even wise to skip the market for today. The reasons for the rebound were many, including reduced fear of the new COVID strain. Pfizer and Moderna have begun testing their current vaccines on the new strain. Also to be noted is that, this highly contagious strain has also been identified in Delhi.

Yesterday’s losers, including theatre stocks and airlines, turned out to be gainers today. OI data is not giving a clear indication today, with 13,000 having the highest put option interest and 14,000 having the highest call option interest. My analysis is that markets may continue to move up, but will be cautious before crossing 13,600 for the week. Resistances exist at 13,500, 13560, 13,600 and upwards. The all-time high will also be a good resistance, near 13,800.

Keep a watch of gold prices, which are spiking with the US stimulus announcement. Also interestingly, the rupee is weakening and giving a boost to both Pharma and IT, just as we have always discussed.

Really hoping that you made use of the volatility, and did not get trapped in it. Let me know in the comments how the day went for you!

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