Today’s Market Summarised

Nifty opened the day with a huge gap-up at 11,607 and formed two red candles, which brought in fears of a quick fall to cover the gap. But the index went back up after taking support near yesterday’s high. After trading between 11,580 and 11,610 for most of the day, Nifty broke out near 2.30pm very strongly. The Nifty 50 index could not break the strong resistance of 11,680 and closed the day at 11,660.20, up 156.85 or 1.36%

Bank Nifty opened the day at 22,687 and strongly fell from there. The index of banks took support near 22,500 and upto just over 22,700 before coming back down again. The index formed strong green candles at 2.30pm and went up strongly to take resistance at 22,900. After consolidating near that range, Bank Nifty closed at 22,853, up 482 points or 2.16%.

Nifty Financial Services gained the most today, led by none other than HDFC itself. Realty stocks and Banks were also among the gainers. Nifty IT recovered from red to close in green.

Asian markets closed mostly in green today. European markets opened flat and fell over the day, might recover by the time US markets open.

News Picks

The HDFC twins lead the market’s rally today, with the parent company Housing Development Finance Corporation (HDFC) gaining 7.56% to close at Rs 1,920. This came on the heels of the announcement that the NBFCs individual loan disbursements in the Q2 of this financial year has reached 95% of the level in the year-ago period. Business is slowly getting back to normal, and this has given investors huge confidence.

HDFC Bank shares closed at Rs 1,143.15/share, up 2.58% after loans disbursed rose 16% to Rs 10.4 lakh crore while deposits increased 20% to Rs 12.3 lakh crore, YoY as of the month of September. 

Shares of Majesco, Infibeam Avenues and Aurionpro Solutions hit their respective 5% upper circuits after the positive sentiments around the company. You can find out exactly what it was from our morning article, here.

Share prices of Tata Motors closed at Rs 144.45, up 7.88% to become the day’s top gainer. After Tata Motors-owned Jaguar Land Rover (JLR) reported 11.9% YoY dip in sales in the second quarter this fiscal to 1.13 lakhs, The company’s sales, however, improved by 50% during the July-September quarter as against 74,067 units in April-June period of the current fiscal, JLR said in a statement. The subsidiary also turned cash positive, with good cash in hand. 

Finance (NBFCs) and Banks gained today, with most top gainers coming from these lists, including in the Nifty F&O list.

In yesterday’s GST meeting, Goa & Bihar had recommended increasing cess in tobacco products. This may affect businesses of ITC and Godfrey Philips in the short-medium term.

SBI has been giving more and more hints earlier that it wants to spinoff Yono into a separate subsidiary, and was today openly expressed by Rajnish Kumar SBI chairman. Yono is said to be a big asset for SBI once it is properly monetised. Can wait and watch.

Markets Ahead

Donald Trump returned to the White House today, early morning in Indian time. He was under observation after contracting Covid-19, and is still not fully cured yet. He set a grand entrance to showcase his might, and took to Twitter to share a video of him talking about how the virus is not to be feared, and that America has the best healthcare and medicines in the world. In behind-the-scenes footage captured by the general media, he was seen clearly struggling to breath and coughing. Although stock markets around the world have recovered following the hype of Trump’s comeback, his health is still considered to be a concern. With his age taken into consideration, there still exists a huge risk of his health deteriorating.

Banks are performing well today, and will continue to do so until the final Supreme Court judgement on Monday. 2nd quarter results are coming out, with positive commentary even from banks. Can catch this rally, but don’t forget to exit!

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