Today’s Market Summarised

Nifty consolidates after the week begins with gap-up.

Nifty opened the day with a gap-up at 14,458 and was very volatile. After moving up nearly 100 points from the opening level, the index got tired for the rest of the day. As Banks slowed down their rally, Nifty fell slowly over the whole day. Nifty closed the day at 14,485, up 143 points or 1%.

Bank Nifty opened at 32,260 with a 500 point gap-up mainly helped by ICICI Bank. As it tried to move up further, heavy profit booking was seen near 32,600. Before noon, the index had peaked and started falling slowly. Bank Nifty closed the day at 32,275 up 552 points or 1.74%.

Nifty Realty(up 3.4%) was the best performing sector followed by Nifty Metal(up 2%). Only Nifty Pharma closed in the red, down 0.87%.

Major Asian markets closed mixed in the day. European markets are currently all trading flat.

News Picks

The Karnataka government has imposed a 14-day lockdown in the state. 

With ICICI Bank reporting a more than three-fold jump in its standalone net profit at Rs 4,402 crore, which is still below analyst estimates. The stock was up by 6% at one point in time and closed the day at 3.7% up.

With this confidence, Axis Bank actually moved up to be the day’s top gaining Nifty 50 stock. It closed above ICICI Bank, up 4.33%.

Cement stocks again did well in the day with UltraCemco(up 3.4%), Ambuja Cement(up 2.7%) and ACC Cement(up 1.3%) leading the charge. Shree Cements closed flat.

Mahindra & Mahindra Financial Services reported an 8% fall in its consolidated net profit at Rs 219 crore for Q4. Managing Director Ramesh Iyer said that the Heavy commercial vehicle business didn’t do well in Q4, and that growth momentum should not be expected this quarter. The stock closed down by 8.75%. 

Dabur fell 3.33%, extending its fall after hitting a market cap of Rs 1 lakh crore earlier in the month.

JSPL is in the final stages to divest off Power arm Jindal Power; Promoter entities keen to buy Jindal Power for valuation of about Rs 8500-9000cr. JindalStel shares closed 1.35% up after being up more than 3% in the day.

Natco Pharma said that Covid-19 patients treated with antiviral drug Molnupiravir achieved response within 5 days of therapy which indicates good results within short periods. Shares of the company closed nearly 4% up.

InfoBeans Tech approved the buyback of shares up to Rs 10 crore at Rs 232/share.

Mindtree has partnered with US-based Insurance Tech company Duck Creek to improve the customer experience for US-based UPC Insurance customers. Share prices closed up 2.30%.

Indiabulls Housing Finance fell sharply after news of Mumbai Police registering a FIR against the Indiabulls Group. Shares recovered to close 1.5% down at the end of the day.

Ingersol Rand said that oxygen compressor demand is rising and is up by nearly 3 times. Share prices closed nearly 6% up.

The Tamil Nadu government allowed Vedanta’s Sterlite Industries plant in Tuticorin to produce oxygen for four months. The stock closed up by 3.7%.

With Steel prices rising higher, metal stocks did well over the day. SAIL crossed a 40-month high to close nearly 8%.

Insurance shares continued to be in rally with ICICI Prudential Life gaining 6% followed by ICICI Lombard gaining 5%. The industry is also expecting double-digit growth in net profit numbers of HDFC Life soon, whose shares closed 3% up. SBI Life closed near 1.8% up.

Shares of Phoenix Ltd closed 14.37% up with an after-noon rally. The stock is still 6-7% down from its 52-week high.

Markets Ahead

Markets have gained today, but Nifty was not confident to close above 14,500. The consolidation is a sign that the market is still observing and learning the situation before deciding to go which way to go. 

But one interesting fact is that, for the last 3 Monday’s, markets opened with a gap-down. But today it opened with a gap-up.

Any bullish move in Nifty will have to be supported by Reliance or Bank Nifty. Interestingly, Reliance closed 1.7% up today. Private Banks led by Axis and ICICI Bank. So it might be the chance for Nifty if this uptrend continues.

A fresh new week, and a lot of consolidation. As we enter the last week of April. We are nearly 300 points down from where we were on April 1st.

Continuing to buy up my portfolio stocks in limited quantities each day. You can never time the market perfectly, so doing the next best thing and averaging in dips.

14,000 remains as a strong support for this week in Nifty, with Bank Nifty having 30,000 as the level. On the upper side, Nifty will find it hard to break 14,550 and 14,700 after last week’s sharp gap-downs.

Catch you all on The Stock Market Show tonight!