Today’s Market Summarised
For Nifty, 15,000 acted as a strong resistance today. After opening at a strong gap-up at 14,972, the index tried to move up but could not sustain the rally above 15,000. It fell with a lot of volatility as Banks moved up but almost every other sector fell sharply. Nifty closes the day at 14,924 up 28 points or 0.19%.
Bank Nifty again rallied more in the early hours of trade today. After opening with a big gap-up at 35,754, the index jumped up with power from SBI hitting upper circuit and HDFC Bank rallying. After creating a high, the index of banks cooled down and fell to take support at 36,000. This was broken afternoon, and Bank Nifty closed below the opening range at 35,654, up 309 points or 0.88%.
Nifty Pharma performed the best in the day as a sector, followed by Metals then Banks.
Asian markets have closed in the green. European markets are currently trading flat to green.
News Picks
Shares of SBI gained right from day open with almost 8-9% gap-up. It went on to hit 10% upper circuit, and even tried to touch the 15% mark. The stock was bullish after crossing its all-time high, just like we had talked yesterday. The stock has gained nearly 40% since Monday morning. Announced better than expected results yesterday.
Shares of Tata Steel again back to its usual self by gaining nearly 5% for the day. The stock has been rebounding from a very good level of Rs 600.
Axis Bank shares fell along with ICICI Bank today to pull Bank Nifty down. Both stocks have good weightage in the index.
Shares of ZEEL fell nearly 14% hitting multiple lower circuits. Analysts had noted that the free cash flow of the company will reduce with its new and upcoming investments.
Shares of Mahindra & Mahindra fell marginally as the company announced worse than expected Q3 numbers due to one-time hit from Ssangyong unit. The company announced Q3 net profit up 42% at Rs 1,268 crore, as revenue grew 11%. Still looks like a very strong growth to me.
All but two stocks in the Auto index closed in the red today. Even the two green stocks, Exide and Bajaj Auto were very much flat.
IT stocks mostly fell through the day, with only Naukri ending in the green from the index. IT stocks have been falling for the past many days, and were not part of the Nifty’s rally this week.
Pharma stocks continued to rebound from their lows and ended as the top gaining sector. DivisLab, TorrentPharma and Dr Reddy closed among the top-gainers in the day.
StoveKraft listed with gains and closed 15% above IPO price.
Markets Ahead
Nifty and Bank Nifty ended at all-time highs with the best week in indices in last ten months or so. Bank Nifty posted 16.6% gains for the week while PSU Banks index gained more than 25%. Glad that the analysis gone wrong from yesterday was overcompensated by the analysis gone right on SBI.
An interesting fact for today is that Nifty has doubled from its COVID-crash. Fueled by recovery with vaccine hopes, liquidity in global markets because of low-interest rate and increased participants in the market, Nifty has rallied like crazy. In fact, even Bank Nifty has doubled.
Take a chill pill, and have some tea while you think about this rally. Soak it in and draw some charts and find new opportunities over the weekend.
Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.