Today’s Market Summarised

Just 13 days after Nifty touched all-time highs, it is back again. After opening near the all-time high level with a gap-up, Nifty created a huge red candle in the first 10 minutes and took support near 14,580. From there the index slowly went back up and touched a new high of 14,868. Calming down, the index closed at 14,789, up 142 points or 0.97% for the day.

Bank Nifty once again bullish in the day. After opening with a gap-up, the index took support at 34,000 and flew back up. Even though not as bullish or crazy as the last two days, the index of banks went up 900 points from there. Bank Nifty cooled down near the end of the day to close at 34,758, up 490 points or 1.43%.

Nifty Pharma rebounded strongly, and was followed by Nifty Metals and Banks. Realty and FMCG sector closed in red. 

Most Asian markets closed in the green while European markets are currently trading flat to green.

News Picks

Shares of IndusInd Bank jumped up to close up 7.47%. The stock has seen an absolutely bullish rebound along with the market. Morgan Stanley had also raised the target price on the stock, which it touched today. Share was up more than 13-14% intraday.

Energy PSUs PowerGrid, Coal India and NTPC featured among the top-gainers, calmly continuing their rally after the budget announcement.

Absolutely the day of Pharma stocks as many featured in the top gainers’ list, along with Pharma being the best performing index of the day. Some stocks including AstraZeneca India were in an absolutely unnecessary fall but took support at good levels. Dr Reddy, Divislab, Cipla and SunPharma were among the top gainers.

ShreeCem and UPL featured in the top-losers section after rallying for many days. PVR also fell 3%.

FMCG stayed flat as Jubilant Food fell 2% after reporting flat revenue growth YoY for Q3. Net profit is up 21% at Rs 125.1 crore. 

Tata Motors fell towards the end of the day after going up till Rs 341. Still the stock closed up 2.8% up. 

Shares of Indigo Paints fell more than 5% after the stock posted a 110% gain from IPO price yesterday.

Finance stocks including Shriram Transport Finance, M&M Finance, Power Finance Corp and Cholamandalam Finance gained between 4-7% in the day.

Bharti Airtel reported a net profit of Rs 853 crore vs a Rs 1035 crore loss last year. Revenue is up 20% YoY to Rs 21,947 crore for Q3. Average Revenue Per User(ARPU) of Q3 is at Rs 166 compared to 135 last year. Last quarter ARPU was Rs 162.

Markets Ahead

Going long on Nifty when it broke the all-time high around 10:10 am was definitely a good move that you could have caught today. Also, I am having a bearish view that Nifty would not cross 15,000 tomorrow.

The huge open interest build-up at 15,000 is an indication but also that Reliance is not very strong as well with Future vs Amazon deal still being stuck. HDFC Bank the range of 1578-1580 can be watched as the stock has taken resistance there multiple times.

Global markets are seeing some profit booking with Europe falling very sharply in the afternoon. I am also expecting a continued rebound in pharma stocks if the market supports along with possible rally of midcap financial stocks.

And hoping everyone who bought some Nifty BeEs with me last week is sitting in some worry-free profits.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.