Today’s Market Summarised

Nifty opened with a gap-down after many days at 15,285 levels and started falling. It fell and took support at 15,200. The line we drew at 15,240 was once again respected throughout the day. Nifty then bounced back up till yesterday’s closing level. It then tested this level again before falling sharply 140 points. Nifty then consolidated to close at 15,208, down 105 points or 0.68%.

Bank Nifty traded inside yesterday’s range and saw proper consolidation within this range. After opening with a gap-down just above 37,000, the index of banks fell to take support at yesterday’s low. It then moved sharply up around 600 points, taking Nifty up as well. Bank Nifty started falling pulling down Nifty too and consolidated to close at 36,910, down 187 points or 0.51%.

Nifty PSU Banks once again closed as the top gainer, gaining 5.9% in the day. The only other major sectoral index to close in green was Nifty Media(up 2.18%). Fin Nifty, Nifty IT and Nifty Pharma fell more than 1% each.

European markets are all trading in the red, along with our markets. Asian markets also moved into the red for the day.

News Picks

PSU Bank index again hit a high today after yesterday’s 4 banks again went up 20%. Bank of India, along with Central Bank, Maharashtra Bank and IOB again at 20% up! They jumped up on hopes of privatisation by the government. SBI too gained 2.34% in a day when Bank Nifty closed in the red.

Auto stocks closed mixed in the day with Nifty Auto index up only 0.28%. MotherSumi gained another 6.4%, thereby going up nearly 30% since results were announced last week. Other auto ancillary stocks, Bosch and Bharatforge closed more than 1% up.

Hero MotoCorp from the auto index closed as the top gainer in Nifty with a 3.54% gain as it regained all losses from the last 2 days of fall.

Adani Ports closed among the top-gainers as completion of Dighi Port acquisition made investors bullish on the stock. Resumed consolidating through the day. Check out this article to know why you should look into the company.

Shares of PowerGrid moved up again, closing up 2%. We had discussed how the stock has been shooting up since budget day.

Reliance continued its momentum even going on to near 2,100 levels. It closed up 1.15%. Contributed 16 points to Nifty today.

Shares of Nestle India closed 2.76% down for the day, as Oct-Dec quarter profit numbers of the company failed to impress investors.

All shares from the Nifty IT index fell today with Naukri again falling the most. Investors are getting concerned on the delay of Zomato’s IPO. Click here to read more about the company.

Every stock in the Nifty Pharma index except Biocon closed in the red today. Along with the IT stocks fall, we can make an intelligent guess that this is because of the strengthening rupee, which is under Rs 73 vs the dollar now. Also, it means that Biocon has some strength in the stock.

Shares of Greaves Cotton gained nearly 20% in the day, as the engineering company reported over 50% growth in revenue last week. They also stand to gain from the upcoming EV boom in the country, with related products. Shares have gained 30% in the last week.

Shares of Sterlite Tech, HFCL and ITI gained more than 10% each as the government approved over Rs 12,000 crore PLI scheme for telecom equipment.

Markets Ahead

Nifty has closed in the red today. It has also formed 5 red candles in the daily chart in the last 10 days. Very interesting to see the index consolidating along with global markets near all-time highs.

Kotak Bank and HDFC Bank tried to move up in the morning but fell sharply after 12 pm today. Together these 2 stocks pulled Nifty down by 50 points today.

Shares of Adani Enterprises closed flat in the day, but once again tested the 800 level. It can be watched in the coming days.

The weakness in IT and Pharma stocks continued. Waiting for a clear indication of a reversal.

Even Japanese markets fell today after consolidating near its all-time highs. It is a very clear indication of a pause in global sentiments ahead of the US stimulus. We had also talked about how there might be lower participation from Foreign Investors today, as US bond yields are increasing ahead of the stimulus.

The PLI scheme in telecom equipment was an expected one but still took the specific stocks up. These stocks may continue performing well in the medium term. Also, domestic telecom players like Airtel and Vi also set to benefit from lower equipment cost, especially for 5G.

Highly bullish on the stocks benefitting from 5G and the stocks benefitting from the EV revolution in the long term.

Catch you all on The Stock Market Show tonight!