Today’s Market Summarised

A day of achievement for the market as Nifty touches a fresh all-time high in trading hours. Reliance and HDFC Bank help Nifty close at record levels.

Nifty opened the day at 15,424 with a gap-up of nearly 90 points.The index mostly consolidated in a tight range, taking 15,400 as support. Even when Reliance kept moving up, other heavyweights kept Nifty flat. Nifty closed the day at 15,435, up 98 points or 0.74%. 

Bank Nifty opened at 35,345, its highest level since March 16th. The index was generally weak. It took support near the 35,000 zone and jumped towards the end with power from HDFC Bank. Mostly a day of consolidation for the index. Bank Nifty closed the day at 35,141, up just 46 points or 0.13%.

Nifty Pharma closed 1.18% in the red. No other sectoral index closed with a more than 1% up or down move. Nifty Energy, which is a thematic index, closed 1.4% up.

Asian markets closed mostly in the green today. European markets are also trading in green. 

News Picks

Reliance closed as Nifty 50’s top-gainer after a long time. The stock went up 6% in the day and was pushing up Nifty the most. With Jefferies noting that the energy business of the company is likely to see better profits, there was huge buying interest in the stock.

AstraZeneca Pharma and Sun Pharma discontinued the dealfor the distribution of a diabetes medicine. SunPharma fell nearly 4.25% after reporting a loss for US-subsidiary Taro.

United Breweries: Banks began inquiries with brokers to sell a 16.15% stake in the company. The stock saw heavy selling and closed nearly 2% down.

Canara Bank approved the capital raising for the year 2021-22 for Rs 9,000 crores from equity and debt instruments. The stock gained more than 5% in the day.

Mahindra & Mahindra closed 2% up after gaining sharply from the day-low. This was after the company reported Q4 Net Profit of Rs 48.4 crore against a loss last year.  This is including a one time loss of Rs 890 crore.

Grasim featured in top-gainers section by gaining 3.41%. The stock has been gaining since announcing Q4 results earlier this week.

Government may tweak FDI rules to allow 100% FDI in BPCL, which means a foreign entity could fully takeover the PSU. The final proposal will be sent to the cabinet soon. BPCL closed nearly 1% up in the day.

Eicher Motors reported a 73 per cent jump in consolidated profit after tax at Rs 526.14 crore. The stock moved up 1%.

Markets Ahead

Nifty moving ahead to all-time highs and closing near the top. The bull market continues. Interestingly, Nifty is up 98 points and Reliance contributed 88 points just on its own.

More participation from Bank Nifty and Reliance is expected next week as Nifty targets 15,800 and even 16,000 levels in the coming months. A good short term support has formed near 15,000 and a longer-term support is seen at 14,600 for Nifty.

Nifty Media gained the most this week, up by 7%. Nifty PSU Bank gained 4% this week mostly from SBI hitting new all-time highs. IT index gained 3.9%.

Governments are slowly opening up and lifting lockdown restrictions as Covid cases reduce across the country. A stimulus package is also being planned. Improved economic data from the United States, which has shown that vaccination can indeed help economies is also a positive.

Now all eyes are on the Q4 GDP data from India. It will be announced on 31st of May, Monday. Markets are surely expecting some good numbers.

Interestingly, Midcap and Smallcap indices closed in the red even with Nifty forming a small green candle. There is a chance that money will flow into quality largecaps in the coming few sessions as smaller stocks cool down.

Have some chill time and take good care of your health. But also don’t forget to take some time out and study some charts. Have a great weekend!

Catch you all on The Stock Market Show tonight!

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