Today’s Market Summarised

Once again a day of consolidation with the markets dancing around after BSE announcements on smallcaps.

Nifty opened the day at 16,327 with a small gap-up, and was very weak. The index kept on falling until it took support at Monday’s low near 16,150. Nifty recovered sharply and ended the day at 16,282, up 2 points or 0.02%.

Bank Nifty was a bit more weak in the day after opening at 36,218 with a gap-up. In the morning fall, Bank Nifty fell more than 700 points to nearly the 35,500 range. However, a V-shaped recovery was not seen and Bank Nifty closed at 35,806, down 227 points or 0.63%.

Most sectoral indices closed in the red but Nifty Metal shot up(+3.14%). Nifty Pharma moved down 1.46%.

Most Asian markets closed flat in the day. European markets are all trading in the green with slight gains.

News Picks

Metal stocks shot up on the day with Tata Steel(+3.8%), JSW Steel(+3.7%) and Hindalco(+2.2%) closing among the top-gainers of Nifty 50.

Other metal stocks including SAIL(+5.8%), Vedanta(+6.4%), Jindal Steel(+5.2%) and National Aluminium(+5.1%) also bounced back after 2-days of fall.

Commodity stocks including metal and even energy stocks. IOC(+2.3%), NTPC(+2.2%), Coal India(+1.2%), BPCL(+1.1%) and ONGC(+1.8%) closed in the green. 

Powergrid(+2.1%) moved up after posting a nearly three-fold jump in consolidated net profit at Rs 5,998.28 crore in the June quarter.

Shree Cement(-2.1%) continued its fall after Q1 results.

Radico Khaitan(+6%) plans to introduce super-premium Whisky and Vodka to strengthen its portfolio. 

Zomato(+8.3%) shot up even after posting higher losses. Net revenue of the company more than tripled in the quarter compared to last year.

MTNL(+1.85%) moved up after getting permission to conduct 5G trials.

RBL BANK(+2.8%) has been selected by the RBI as an ‘Agency Bank’ to conduct banking business for the Central and State Governments.

Siemens closed 6.3% up after posting results yesterday.

Kitex hit 10% Upper Circuit after more than doubling Q1 consolidated net profit to Rs 20.5 crores from last quarter.

Markets Ahead

Midcaps and smallcaps crashed in the morning while Nifty was consolidating. And by crashing, I mean the indexes were 2-3% down. The factor attributed was BSE planning to introduce newer upper circuit limitations on these stocks with small market capitalisations.

This turned out mostly to be panic selling as stocks and indices gained back sharply after clarification from the stock exchange.

Nifty moving back above 16,210 and almost reaching back to 16,300 showed a bullish close in the market. Bank Nifty fought away bears after closing above the 35,700 zone. 

Markets have so far shown consolidation with heavy volatility intraday. Expecting the same to continue and Nifty to consolidate for a few more weeks.

After that, FIIs are likely to give a direction for the market for the upcoming days. Reliance also closed with strength above 2,100 and can be watched for a movement.

Catch you all at The Stock Market Show sharp at 6:30 PM!