Today’s Market Summarised

While Friday was dominated by bears, today was the day of bulls. And what a historic day for Indian financial markets. The Union Budget was well received by the market, and by well received I mean very well received. The highest gain during a budget session since 1997 where Nifty rose 6%, which was known as the ‘Dream Budget’.

After opening with a very small gap-up at 13,766, Nifty consolidated and fell till around 11 am. But once the budget presentation started in the parliament, there was no looking back for Nifty. There was so much much power that the rally went on to last even till the end of the day. Nifty crossed several key resistance zones including 14,000 and went up to close the day at 14,281, up 646 points or 4.74%. The unbelievable rally, what a day!

Bank Nifty was even more bullish in the day. With so many announcements for the benefits of banks, including divestment of SBI, the index rallied with so much power. Bank Nifty went up from 30,984 to 33,300 in the day. The index closed at 33,089, up 2,523 points or 8.26% for the day.

Bank Nifty was the best performing sector in the day. Metals gained more than 4.8% while Auto went up 4.2%. Pharma closed in the red, down 0.55%.

Asian markets have all closed in the green today. European markets are also in the green. Did our markets push up others today?

News Picks

Shares of IndusInd Bank stood as the top gainer in the Nifty 50 index. Shares of the company rose as the positivity in Bank Nifty took every banking stock up. ICICI Bank was up more than 12.44% at market close. The stock had also gained well on Friday.

PSU Banks including SBI(up 10.44%) rose after Finance Minister’s plans in the budget to divest stake and also pump in funds to the sector. Bank of Baroda and PNB also went up 8.60% and 7.2% respectively.

Auto stocks gained as the Finance Minister announced the scrappage policy. Ashok Leyland gained more than 10%, while Tata Motors gained more than 6.43% followed by M&M at 6%.

All shares in the Realty index gained as the Finance Minister announced many realty schemes, mainly affordable housing plans. DLF gained more than 10% followed by Indiabulls Real Estate going up by nearly 8%.

Pharma index fell mainly with Cipla and Dr Reddy falling in the day. The sector did not see any ‘special’ benefits in the budget. 

Shares of Titan, Manappuram and MuthootFin gained in the day as the proposal to decrease import duties on precious metals resonated well with market participants.

Markets Ahead

Bank Nifty has touched fresh all-time highs. And Nifty is still nearly 500 points away from its post-covid highs. Will be very interesting to see how this turns out in the coming days. Bank Nifty Feb futures was also just 300-400 points away from hitting Upper Circuit(10%) near the end of the day. The fact that many stocks were at key supports after Friday’s fall also made it a very technical rebound.

While I maintain my position of turning bullish once Nifty crosses 14,000, expecting a small correction after today’s freak show of a rally. 

Traders who kept stoplosses would have maybe been in trouble, as the volatility was huge in the day. Although scalping positions and well thought of SLs would have surely made this one of the best days in your trading career. 

Well, today was the day for option buyers with the markets trending into one direction. Sellers would have faced a huge loss today, while intelligent sellers would not have entered at all. Although, even here I would still say that market could have trapped you multiple times if profits were not booked. Scalpers paradise. All in all, a very satisfying day indeed. 

To be clear, Nifty is rallying like this for the first time since April last year just after the Covid crash. And this my friends is the second Nirmala Candle which you just witnessed today. Open the 1-Day charts to checkout how beautiful it looks. We will be covering all updates from this years budget in a separate article today. Stay tuned!

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