Today’s Market Summarised

Market continues rally and runs with extreme buying action all around led by TATA stock.

NIFTY opened the day at 18,098 with a big gap-up. The first candle tried to fall but took support near the previous all-time high of 18,050. Resistances were taken near 18,100 and 18,140. After rallying till 18,200, NIFTY closed the day at 18,161, up 170 points or 0.94%.

BANK NIFTY opened the day at 38,737 with a gap-up and tested 38,780. But throughout the day, this level was not broken and the index traded taking support at 38,500. BANK NIFTY closed the day at 38,635, up 114 points or 0.3%.

NIFTY AUTO(+3.4%) continued its breakout and closed with big gains led by Tata Motors(+20.4%). NIFTY IT(+1.1%) and NIFTY METAL(+1.4%) also jumped up. Only NIFTY REALTY(-0.24%) closed in the red, while all other sectors were in green. 

Asian markets closed mostly in the green today, with just Nikkei in the red. European markets are trading mixed currently.

News Picks

Tata Motors(+21.1%) continued its rally and hit a 4-year high after announcing plans to raise $1 Billion (~Rs 7,500 crore) in its electric vehicle (EV) business from TPG Rise Climate. The stock was NIFTY 50’s top-gainer and closed with incredible bullishness. 

Other Auto stocks including Ashok Leyland(+5.2%) and M&M(+5%) also closed in the green. However, market leader Maruti(-2.7%) closed in the red. Tata Motors DVR(+20%-UC) also closed in the green.

ITC hit a fresh 52-week high and closed 3.2% up. Other FMCG stocks – Tata Consumer(+3.9%), Dabur(+1.1%) and Godrej CP(+3.1%) closed in the green showing strength near closing time. However, Hindustan Unilever(-1.1%) and Nestle(-0.5%) closed among Nifty top-losers.

Adani Ports(+3%) created a reversal candle in the day charts and closed among the top-gainers after a long time after distancing itself from the heroin haul in Gujarat and cutting imports from neighbouring countries.

Adani stocks led by Adani Power(+5%-UC) and Adani Ports closed with gains. Adani Ent(+0.98%) and Adani Transmission(+0.83%) closed slightly in the green. Adani Green(-1.2%) closed in red as it moved up last day. ATGL(+2.9%) has raised CNG, PNG prices by up to 7%, the third hike in October.

Power related stocks Power Grid(+3.1%), Tata Power(+14.5%) closed in the green as others including ONGC(-2.1%) and Coal India(-1.6%) fell.

TATA Group stocks were incredibly bullish in the day, not just Tata Motors. Tata Steel(+1.9%), Tata Coffee(+2.6%), Tata Chemical(+14%), Tata Investment(+13.6%), Tata Metaliks(+2.1%), TATA MTR DVR(+20%-UC), Tata Communication(+4.5%), Indian Hotels(+8%), Tayo Rolls Ltd(+20%-UC), Trent(+3.5%), Titan(+1.7%), NELCO(+5%-UC) and others flew up.

Fun fact: Air India was free for TATA if you consider the increase in the market caps of its companies today.

IT stocks Wipro(+2%), MindTree(+2%) and INFY(+1.4%) moved up ahead of results. LTI(+2.1%), TechM(+2%), LTTS(+1.6%) and HCL Tech(+1.2%) also gained in the day.

Reports saying that China has asked steel mills to reduce steel output from November 15th to March 15th, 2022 helped metal stocks including SAIL(+5%), Tata Steel(+1.9%), Jindal Steel(+3.3%) and JSW Steel(+1.1%) close in the green. 

Aluminium stocks including Hindalco(+1.8%), National Aluminium(+3.7%) and Vedanta(+2.3%) continued to rally on the back of increasing aluminium prices globally.

Wipro results came just after market hours with a Quarter on Quarter fall in net profits, but still beating estimates.

After HAL rally in September, looks like it is time for BHEL(+8%) now gaining over 30% in the last month. The stock gained sharply after touching an intraday high of over 10%.

Aviation Minister asks states to bring down VAT on ATF Jet Fuel. Indigo(-1.1%) opened with a gap-up but could not sustain gains. Spicejet(+3.4%) closed in green.

Palred Tech(+13.2%) has launched a Alexa built-in portable smart speaker called ‘musicbot cube’.

Russian Sputnik to release its Sputnik Light one-shot vaccine data today. Partner Panacea Biotech(+0.96%) spiked up and closed in green.

Indian Govt reduces custom duty and Agri cess on edible oil. Ruchi Soya(+1.3%), GAEL(+3.3%) moved up slowly.

Markets Ahead

NIFTY closed at fresh high levels even when Bank Nifty consolidated after opening. The most gains were contributed by Tata Motors by its incredible 20% rally. The stock hit a price of Rs 500 today. Never too late to invest in good stocks like these. Search for dips! 

The level of Nifty’s all-time high of 18,050 was respected today, but funnily on the opposite side. It was taken as a support after the gap-up opening. 

Looking ahead, 18,050 will be an important level for the index. If 38,500 is held in Bank Nifty, we can expect the level of 40,000 to be a reality soon. HDFC Bank even though it did not move much today is at its all-time highest closing level. Kotak is 3% away from its 52-week high and IndusInd Bank and SBI are at their 52-week highs.

Nifty’s 5-day straight rally looks interesting. Tomorrow is the weekly expiry, so we can expect interesting moves. The short-covering move from 18,000 looks complete and there is a chance for consolidation tomorrow if Banks continue to move sideways.

Infosys and Wipro results will cause a volatile opening in these stocks tomorrow. Watch for big gap-ups/downs and take care before trading.

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