Today’s Market Summarised

Volatility returning to the market with bears showing their strength.

Nifty opened the day flat at 15,821 and was bullish. It broke the 15,870 resistance by 11 AM and continued to move up. 15,910-15,915 which is the all-time high zone, acted as tough resistance. From here, there was a 110 point fall to day-low as bears took charge. Nifty closed the day at  15,818, down 16 points or 0.10%. 

Bank Nifty opened at 35,186 and made a strong green candle. Even with afternoon fall, the index had a bullish day. After 35,500 was broken, there was a smooth and slow rally to 35,800. But this was taken as resistance and a fall of more than 300 points was seen. Bank Nifty closed the day at 35,579, up 367 points or 1.04%.

Nifty Auto(-1.74%) had a really bad day along with Nifty IT(-1.04%). Bank Nifty(+1.04%) and Fin Nifty(+0.97%) were bullish as others consolidated.

Asian markets closed mixed in the day. European markets are all trading slightly in the red.

News Picks

UltraCemCo(+3.17%) and Shree Cements(+2.9%) closed as Nifty 50’s top-gainers. Cement stocks were in strength today as analysts expect demand to increase with the economic re-opening. Prices have also been steady despite weak Q1 volumes. 

Other cement stocks including AmbujaCem(+3.3%), ACC(+2%), IndiaCem(+1.8%), JK Cement(+5.99%), Ramco Cements(+4.8%) and JK Lakshmi Cements(+8.5%) also rallied.

HDFC Bank(+2.62%) gave a breakout after many weeks of consolidation. Yesterday, the company had also reported good growth in loans and deposits for Q1. The stock is at its highest level since 31st March.

Bajaj Finance reported a 15.2% YoY jump in Assets Under Management at Rs 1.59 lakh crore. The customer base increased 17.4% YoY and 3.9% QoQ to 5.05 crores. Also reported 46 lakh new loan books compared to 18 lakhs last year. Bajaj Finance closed 2.1% up. Bajaj Holding(+2.9%) and BajajFinserv(+1.4%) also moved up. 

Tata Motors was the highlight of the day. It reported good Q1 Retail sales numbers, up 68.1% YoY to 1.24 lakh units. But concerns were raised about chip shortage and the negative free cash flow of JLR, which was earlier predicted to be positive. The stock crashed and touched 10% Lower Circuit. It closed 8.4% down.

IT stocks including TCS(-1.7%), TechM(-2.3%) and Infy(-1%) featured in the top-losers list with low growth expectations in Q1 results. The stocks have already given good moves since May.

AU Small Fin Bank closed 8% up after publishing Q1 business updates. If you look at the 1-day chart, it has also bounced from a good support channel.

Theatre stocks PVR(+4.2%) and INOX(+2.5%) moved up over unlock expectations.

DHFL solution stretches on. 63 Moons, who holds NCDs worth Rs 200 crores in DHFL asked the court to halt Piramal’s plan to takeover DHFL. The court issued notice to PEL and lenders after 63 Moons’ plea. PEL(-2.48%) closed in the red.

Goldiam International to consider buyback on July 21. The stock witnessed unusual volumes after the news and closed 8.5% up.

Biocon closed 3.6% down after CLSA’s sell call on the stock

Markets Ahead

Many factors came together to bring selling pressure in the market today. 

Nifty touched its all-time high resistance zone. Bank Nifty touched a more than 3 months high of 35,810. Along with this, Auto and Metal stocks began falling with the negative commentary from Tata Motors‘s Jaguar Land Rover wing.

If this wasn’t enough, when Nifty was trying to recover from the first fall, GST Revenue Collection data also came out. For June 2021 it stood at Rs 92,849 crores, falling below 1 lakh crore for the first time in 9 months.

With all this, there was only Bank Nifty supporting the market. HDFC Bank alone gave Nifty 37 points in a general day of fall. Interestingly, Bank Nifty is still above 35,500 level and Nifty has found support at 15,800.

As we discussed yesterday, a bullish confirmation was possible only if the all-time high of 15,900-15,915 was crossed by Nifty without a gap-up. So currently, I am neutral on the index, watching 15,750 on the lower side and 15,915 on the upper side.

Slightly bullish on Bank Nifty, but it will have to cross the 35,800 resistance zone to show some strength. Private banks are looking strong.

Hoping you had a great day in the morning rally or afternoon fall. Or did you get trapped in the volatility? Let us know in the comments section of the marketfeed app!

Catch you all on The Stock Market Show tonight!