Today’s Market Summarised

A V-shaped recovery in Nifty after the morning fall.

Nifty opened the day at 15,761 with a small gap-up and went crashing down. After consolidating a bit near yesterday’s low, the index once again fell sharply and reached 15,450 levels. In less than 2 hours of market opening, Nifty crashed more than 300 points.

But from here, the reversal came. The index just kept on moving up till the end and closed flat. Nifty closed the day at 15,683, down 8 points or 0.05%.

Bank Nifty opened at 34,738 and went down 830 points in 90 minutes. And just like Nifty and many other indices, it moved back up with a lot of power till the end of the day. Bank Nifty closed the day at 34,558, down 47 points or 0.14%. 

Nifty PSU Bank(-1.7%) was the biggest loser. No other index moved up or down by more than 1%.

Asian markets closed mostly flat today. European markets are all trading  with small losses.

News Picks

Adani Ports went up 7.33% in the day to close as Nifty’s top-gainer. It was the top-loser yesterday. Adani Ent(+8.5%) also moved up, while Adani Power, ATGL, Adani Green and Adani Trans closed 5% down each.

Bajaj Auto(+2.7%) and Eicher Motors(+1.26%) closed with gains in the top-gainers list.

With the company hinting at potential tariff increases, Bharti Airtel (+1.9%) moved up.

Hindustan Unilever(+2.7%) hit a 2-month high today and closed with good gains. The stock has now moved up 6.5% this week.

ONGC fell nearly 3.9% after crude oil prices cooled down. The state-run company is also facing protests from farmers in Tamil Nadu against the development of oil and gas fields at Vadatheru.

Other energy stocks including Coal India(-3.78%), NTPC(-3.28%) and PowerGrid(-2.86%) featured in the top-losers list.

Most metal stocks once again closed in deep red with JSW Steel(-3.7%), VEDL(-3.67%), SAIL(-3.35%) and Jindal Steel(-1.8%) leading the fall.

Idea moved up after reports of the company likely launching a QIP(Qualified Institutional Placement) soon to raise about Rs 5,000-7,000 crores. Moody’s also changed outlook ratings to stable for the company. The stock saw a beautiful intraday boom and closed 9.5% up

Aster DM Healthcare ties up with Dr Reddy’s laboratories for Sputnik V vaccination. The stock closed 4.4% up.

Eveready Industries closed 6% up after reporting Q4 net loss of Rs 443 crores against a profit of Rs 63.1 crores last year. There was an exceptional loss of Rs 630 crores. The stock closed 6% up

Ashok Leyland fell 4% after a downgrade by Credit Suisse. Similarly, Nazara Tech fell 9% after a CLSA downgrade.

SBI Cards fell 4% in the day, after news of private equity fund Carlyle planning to sell a 5.1% stake in SBI Cards and Payment Services worth ~Rs 5,000 crore.

Markets Ahead

Nifty made an amazing comeback in the day to close flat. Even though we expected consolidation, a very trending day was seen. With the first half being downward trending and the second half being upward trending, Nifty ended with net consolidation.

The bullishness in Reliance and HDFC Bank will hopefully be continued into next week. In fact, most of the market underperformed this week. This week, only Nifty IT and Nifty FMCG closed with gains of 0.8% and 1.8% respectively. Metals fell nearly 6.6% including Adani Ent’s fall.

Midcaps and smallcaps underperformed Nifty this week.

Even with the bullishness, yesterday’s high could not be crossed. Will be watching this level for Monday along with how the global markets perform. Expecting some consolidation with bulls and bears clearly not letting each other win.

Hope you had a great week. In the last 5 days, many stocks have fallen so how are your swing picks looking?

Catch you all on The Stock Market Show tonight!