Today’s Market Summarised 

Nifty started off the day with a flat opening today at 11,450 levels. The index made a day-high of 11,493 within the first 10 minutes, and quickly went down. Throughout the day, Nifty kept moving between 11,420 and 11,480 to finally close flat at 11,464.45, up 15.20 or 0.13%.

5 min chart of Nifty

Bank Nifty opened at 22,475 and quickly touched the day-high near 22,670, with a move similar to Nifty’s. The bank tracking index started falling and touched a day-low of 22,200, down 470 points from the high. With some renewed interest after 2.45pm, Bank Nifty (along with many other sectoral indices) jumped up very fast to close barely in green, at 22,479.95, up 13.75 points or 0.06%.

5 min chart of Bank Nifty

Nifty IT was the top-gaining sector today,along with Nifty Realty. Nifty PSU Bank followed with a strong rally near market close.

Asian Markets closed in green today. European markets are currently trading mixed.

News Picks

Shares of Yes Bank closed in the exchange mandated 5% upper circuit after paying off the ₹50,000 crore provided by RBI as a special liquidity facility (SLF). Trading closed at ₹14.55/share, up 4.68%

Shares of National Fertilizers closed at ₹36.5, up 3.55% after April-Aug sales went up 16% to 23.81 lakh MT. Urea production rose 13% to 16.11 lakh MT.

Shares of Religare Enterprises gained 7.57% to close at ₹45.45 after the company said it has begun talks with a local investor for divesting a majority holding in Religare Finvest, its wholly owned lending subsidiary.

Shares of Indiabulls Housing Finance Ltd closed at ₹196.95, up 1.16% after the company set plans to raise Rs 2,200 crore through a share sale and divestment of ownership held in UK’s OakNorth Bank.

Shares of Hindustan Copper opened with a good gap-up at ₹37.75 but failed to move further during the day. Trading for the shares closed at ₹37.35, up 5.81%. This comes after the company’s profit margin in Q1FY21 rose 40% to ₹29.8 crore from ₹21.2 crore. Also, the company is planning to raise funds via QIP.

Shares of RVNL gained 2.15% to close at ₹21.35 after the company reported net profits for Q1FY21 were down 23% to ₹141 crore YoY.

IT sector stocks were the major movers of the day, with 3 out of top 5 Nifty 50 gainers coming from this sector. Shares of Wipro gained the most, being up 2.81% to close at ₹292.55 after creating a fresh 52-week high. During the day, SEBI had shortlisted eight companies including Bharti Airtel, Wipro and Tata Communications to revamp its IT infrastructure network and communication systems.

Another tech-stock, COFORGE (previously NIIT Tech), gained 9.03% to close at ₹2084.4. 

Shares of Manappuram Finance closed at ₹157.9, up 7.2% after seeing a comeback in investor confidence. Many of our readers are holding this stock in their portfolio, and I hope you saw some good returns today.

Markets Ahead 

Nifty overcame yesterday’s negative global cues to close flat today. This shows the confidence of investors in the index after local cues turned positive, with India and China agreeing to ease tensions in the border. This can be the right moment to get back into swing trades, as markets are likely to recover from here. The IT sector rally can also be closely watched for short and long term gains. US elections are just around the corner and the results will affect IT companies directly. Also watch the flucutations in dollar values, as stronger dollar is better for exporting industries like IT. Keep watching this space for more updates.