Today’s Market Summarised

Hope you all had a great Diwali weekend. The market has resumed today after taking an off on Monday.

Nifty opened at another fresh all-time high, at 12,934 backed by the positive news from Moderna vaccine. But as expected, this level could not be sustained and the index fell to create a day-low near 12,800. After taking this support, the index slowly moved up and consolidated to close at 12,873.20, up 94 points or 0.74%.

Bank Nifty opened with a big gap-up at 28,807 and went up, unlike Nifty. The index passed 29,000 level, took resistance near 29,124 and fell quickly. Then it took support near last day’s high and went back up. Bank Nifty then broke the previous high and closed at 29,181.30, up 587 points or 2.05%.

Nifty Metal led the charge today, with Tata Steel jumping the most in the sector. Nifty Bank also performed well, and along with Nifty Realty. Nifty Media performed the worst today.

Asian markets closed mainly in the green today. European markets are trading in red, at the time of Indian market close.

News Picks

Tata stocks helped push Nifty up with Tata Motors and Tata Steel. Both stocks were top gainers in Nifty 50 today.

Tata Motors jumped up 6.15% to Rs 158 after the company reported good sales growth in the festive season. Their most premium car, Harrier, is also said to be showing really high sales growth. Most auto stocks performed well, with even Maruti going up to close 1.89% to Rs 6,981.

Tata Steel went up 6.20% to close at Rs 522.70. It was Nifty 50’s best-performing stock today. The stock has also been in a constant uptrend. Multiple brokerages, including Morgan Stanley, had increased their targets on the company. Also, the company is looking to sell its UK business to Swedish firm SSAB and will help to raise funds for the high-debt company.

Share prices of Eveready closed at Rs 166.70, up 7.17% today. The battery maker had reported over three-fold jump in consolidated net profit to Rs 57.22 crore last day.

Shares of BPCL fell sharply after opening to close at Rs 394.65, down 4.41% after Reliance and other major companies failed to bid for its privatisation.

Shares of Larsen & Toubro closed at Rs 1,080.90, up 2.05% after the company emerged as the lowest bidder for a Rs 3,200 crore project to build a road bridge over the Brahmaputra river.

Markets Ahead

Nifty closed with a red candle after opening at more than 12,930. Clearly, this was a very unsustainable level and it fell soon. But, the index has not lost bullishness as indicated by the very long wick below in the 1-day chart.

The Moderna vaccine has surely given global markets some positivity. European markets already factored in this news, and are forming a red candle today. In my very humble opinion, the index is at a very high level and will clearly be unsustainable. But the stock-specific moves, like those in Tata Motors and Tata Steel today, may help push up the index a bit more to touch the 13,000 level.

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