Today’s Market Summarised

It was indeed a very volatile day in the market today. Two competing forces fighting for power; Reliance and Bank Nifty. But in the end, Bank Nifty won the tug-of-war.

Nifty opened the day at 11,679 with a slight gap-up today with the positive sentiment of Bank Nifty. But just after opening and taking resistance near 11,680, the index started falling due to the steep fall in Reliance. Nifty took support at 11,550 near yesterday’s low at around 10 am. Then for the rest of the day, it was a competition between Reliance and Banks today and it seems like banks won. After being volatile, Nifty shot up after 1:30 pm to touch a day-high of 11,725. Just before the close, Nifty corrected to end the day at 11,669.15, up 26.75 points or 0.23%.

Calling Bank Nifty ‘Star of The Show’ would be an understatement today. Not even for a bit did the index dip into red today. After opening at 24,282 with a good gap-up, Bank Nifty consolidated for a bit, but then quickly shot up making higher highs. The index effortlessly crossed many resistance levels, even crossing 25,000 easily to touch a day high of 25,140. Towards the end of the day, Bank Nifty corrected to close at 24,892, up 991 points or 4.15%.

Bank Nifty and Nifty Financial Services were the stars of the day. Nifty Realty also did well, moving up from the moving average line plotted by us on The Stock Market Show last day.

All major Asian markets are trading in the green today. All European markets are surprisingly trading in the green, even after the lockdown announcements.

News Picks

Reliance’s fall was the major event of the day, with shares closing the day at Rs 1,877.45, down 8.62%! The partly paid-up shares, Reliance PP, was locked at 10% lower circuit for most of the day. This big jump came after investors panicked following the quarterly results which showed core businesses of the company falling. We will be writing an in-depth article analysing the results, and the possible reasons for the fall in Reliance. Talking about Nifty, this fall in Reliance pulled down the index by 136 points today. So if Reliance was flat, Nifty would have tested 11,850 today.

The HDFC Twins jumped in the afternoon, mainly because results of parent company HDFC was still awaited. The Non-Banking Financial Company reported a net profit of Rs 2,870.1 crores, down 27.6% year-on-year, but still above estimates. Net Interest Income(NII) jumped 20.7% YoY to 3,647 crores. Shares of HDFC closed at Rs 2,040.80, up 6.10% while that of HDFC Bank closed at Rs 1,215.25, up 2.68%

Bharti Airtel outperformed today, as expected. If you checked out our live feed on the new marketfeed app, you would have seen both HDFC Bank and Airtel giving good returns. Shares of the company closed at Rs 457.40, up 5.45%. There is news circulating that Airtel may sell stake in its fiber assets to raise funds. Also, the company is said to have added more customers than Jio in the previous quarter.

IndusInd Bank shares jumped 7.28% in trade today to Rs 628.35, after the company declared good results on Friday after market hours. 

Shares of Wockhardt Pharma jumped in trade as the company got selected to supply Covid-19 vaccine in the UK. Share prices closed at Rs 295.50, up 1.41% when the rest of pharma stocks were trading in the red.

Tractor manufacturer Escorts reported a 130% YoY increase in net profit to Rs 230 crores. Share prices jumped from red to close at Rs 1,228.20, up 2.27%.

Markets Ahead

The big-tree of Nifty, Reliance, has fallen. Who is next? There are many speculations running around the market as to why Reliance fell. But as we discussed above, it can be attributed to the fall in revenues in core petrochemical business. Banks outperforming, and even holding up Nifty was indeed a marvellous sight today. Surprisingly, global markets are trading in green even though the news from Europe is not that good. The next factor of volatility left is the US elections, which are scheduled to happen tomorrow. marketfeed is writing an article on how the markets might react, depending on whether Trump or Biden gets elected. Watch for even more volatility in Reliance, and in Nifty tomorrow.

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