Today’s Markets Summarised

Nifty opened the day at 11,368 with a gap-up after global markets bounced back from the week’s lows. The index was mainly carried by Reliance throughout the day, who is the largest participant of Nifty. The index kept going up from its open, but witnessed heavy profit booking near noon. Around 2pm, Nifty regained confidence and began firing and ended the day strongly at 11,449.25, up 171.25 points or 1.52%. 

5 min chart of Nifty 50

Nifty closed in green after breaking out of a 2-day losing streak.

Bank Nifty was a roller-coaster ride today, unlike Nifty who moved with confidence. The index of the top banks in India opened at 22,478 and went up to 22,678 just before noon. When Nifty fell around that time, Bank Nifty fell even harder. After taking support near 22,200, Bank Nifty went up to close the day at 22,466.20, up 200 points or 0.88% but under the open price.

5 min chart of Bank Nifty

Nifty PSU Bank outperformed every other major index today, by closing up 2.46%. Nifty Metal was the worst performing sectoral indice, closing down 1.14% for the day.

Major Asian markets closed mixed. European markets are also trading mixed, at the time of Indian market close.

News Picks

Reliance Industries made history by becoming India’s first company ever to hit a valuation of $200 Billion. Reliance led the rally for Nifty today, ending as the top gainer on Nifty with a gain of 7.3%. The stock contributed 118 points to Nifty’s total gain of 171 points. This quick movement in the stock comes after renewed interest of investors after fresh investments in Reliance Retail. Shares of the company closed at ₹2,319 for the day, after making an all-time high of ₹2,344.95. We had talked about the stock’s possibility to give huge returns in today’s morning article here

Shares of State Bank of India closed at ₹198.55, up 1.90% after the lender raise ₹4,000 crore from additional tier 1 bonds at a coupon of 7.74 percent. Banks and financial institutions have been raising funds to safeguard themselves from possible bad loans in the coming quarters.

Shares of Indiabulls Housing Finance closed at ₹194.50, down 3.38%, after the NBFC launched its QIP (qualified institutional placement) and set the floor price at Rs 206.70/share for the issue. Click here to read what a QIP is.

Shares of Syngene International Ltd closed at ₹475, up 4.53%, after the company received ICMR approval for HiMedia-Syngene’s COVID-19 antibody test kit, ELISafe 19. This stock was discussed on today’s morning feed, hope you caught the rally. 

Shares of Asian Paints hit a fresh all-time high of ₹2,069 and closed at ₹2,062.95 up 4.24%. ₹2,000 was a huge emotional resistance and after breaking the level, the price of the stock skyrocketed. Our view was shared on Telegram @fundfolio, hope you made a good return today.

Shares of Hindustan Hindustan Oil Exploration Company rose 7.83% to close at ₹74.40 after a petition against the company was withdrawn by Hardy Exploration. Shares of Oil companies BPCL and IOC also featured in Nifty top gainer’s list.

Shares of Credit Access Grameen closed at ₹722.10, up 10.66% after breaking many important resistance levels.

Shares of Adani Enterprises closed at ₹297.20, up 5.00% for the day. Shares had touched an intraday-high of ₹307.95 and has gained more than 50% in the last 30 days.

Markets Ahead

Last week’s falls seem to have had no permanent impact on Nifty, with the index closing at strong levels today. Bearish predictions for the week missed their 10,800 targets by huge margins, with the index taking strong support at 11,200. Global cues are turning flat again, and with Reliance’s help, Nifty might shoot up again in the coming days. An investment by Amazon is in the horizon for Reliance Retail and this might change the Indian retail sector for once and for all. Keep watching this space for more updates.