Today’s Market Summarised

Nifty once again hits a fresh all-time high with a small green candle in the 1-day charts.

Nifty opened the day at 16,520 and had a volatile first two hours. After moving back up and crossing the opening level, it was many hours with consolidation. Nifty created a fresh all-time high at 16,589 and then it was clear profit booking as the index couldn’t form even a single 5-min green candle. Nifty closed the day at 16,563, up 34 points or 0.21%.

Bank Nifty opened the day flat at 36,115 and was moving sideways. The index was in a mood of heavy consolidation through the day and closed near the day-low. Bank Nifty closed the day at 36,094, down 75 points or 0.21%.

Just Nifty Metal moved up with strength. Nifty Media and Nifty PSU Bank closed in the red, while all other sectors were mostly consolidating. 

Most Asian and European markets traded in red for the day.

News Picks

High demand and high prices pushed Tata Steel(+3.9% – 52 week high) to Nifty’s top-gainers, after announcing really good quarterly results. JSW Steel(+1.6%), HindZinc(+3.1%), Vedanta(+2.3%), Jindal Steel(+1.4%) also moved up.

Reliance(+1.3%) jumped up after reports that the company and Saudi Aramco are in ‘advanced talks on a big deal’. 

Bajaj Finance(+3.5%) and Finserv(+1.6%) closed in Nifty’s top gainers. HDFC also gained 1%.

M&M(+2.6%) moved up after announcing the all-new XUV-700 with aggressive features and pricing. It was the only stock from Nifty Auto in green.

Maruti(-2.5%) fell after announcing that the upcoming emission norms will impact sales. Bajaj-Auto(-2%), Eicher Motors(-2%) and Tata Motors(-1.1%) also closed in the red.

Apollo Hospitals(+6.9%) shares jumped in the day after announcing strong results for Q1. Fortis(+8.9%) also jumped after its results.

Vodafone Idea closed 5.5% down following weak Q1 results. IDFC First Bank(-1.4%), which has a loan exposure to Idea fell.

Pizza hut and KFC franchisee Devyani listed with a 56% premium at Rs 140.9 vs an issue price of Rs 90. The stock closed at Rs 123.50, up 33%.

SBI(-1.4%) fell after announcing interest concessions on gold loans and waiver of processing fees on car, gold and personal loans.

Gravita India(+12.7%) said it has increased the capacity of its existing recycling unit situated at Chittoor, Andhra Pradesh.

Markets Ahead

Global markets have gone into consolidation after their terrific rally. Indian markets continued their bullish trend with a green candle after Reliance and HDFC moved up.

Reliance alone contributed 17 points to Nifty’s 34 point green candle today. We had discussed in our Week Ahead article that it was now time for Reliance to move back up. The stock is trying to break a trendline in its 1-day charts.

Mahindra was bullish after the new car launch. The stock can be watched for more up moves if sustaining above 800-805 levels.

One concerning fact is that Maharashtra CM Uddhav Thackeray said that lockdown will be re-imposed. if Covid cases rise in the state. I don’t think that the economy can handle a third lockdown in its current situation.

Funds continue to flow into largecaps, while midcaps consolidate. Watching out for a big move in Bank Nifty after today’s heavy consolidation. 

Also, keep a watch on how the Afghan situation evolves, and if there is any threat to our country. Markets may crash if such a situation arises, otherwise won’t be affected as seen today.

Catch you all at The Stock Market Show sharp at 6:30 PM!