Today’s Market Summarised
Markets hold gains from yesterday as smaller companies lead the rally.
NIFTY opened at 16,536 with a small gap-down and shot up. The index was in a mood to consolidate the whole day. It traded between the high and low of yesterday. NIFTY ended the day at 16,630, up 35 points or 0.21%.
BANK NIFTY opened at 34,283 and moved up. It traded between the 34k and 35k levels in the day. Just like NIFTY, the index of banks was also in a mood to consolidate today. BANK NIFTY closed at 34,546, up by 70 points or 0.2%.
NIFTY Pharma (+2.4%) was the only sector to outperform today. Most others consolidated.
Asian markets closed mixed in the day. European markets are trading in the green currently.
News Picks
Pharma stocks closed in the top-gainers of NIFTY with strong moves. Cipla (+5.7%)and SunPharma (+3.7%) hit 52-week highs. Dr Reddy (+3.1%), Granules (+5.3%), Laurus Labs (+4.3%) and others also gained.
FMCG companies including Nestle India (-1.8%) and Tata Consumer (-1%) saw slight profit booking. ITC (+1.8%) still closed with good gains.
Titan(+1%) gained after picking up a 17.5% stake in lab-grown diamond maker Great Heights from the USA, for an estimated $20 million(Rs 150 crore).
Hindustan Petroleum (+5.4%), BPCL (+3.7%), GAIL (+3.7%), IOC (+2.2%) and others gained in the day with the price hikes coming soon.
BSE (+3.7%), MCX (+4.54%) and CDSL (+2.5%) continued their rally.
Chemical stocks gave breakouts in the day. GNFC (+12.4%), RCF (+6.6%), FACT (+9.6%) and GSFC (+6.2%) were among the trainers from NIFTY 500.
Sugar stocks Balrampur Chini (+8.4%), Dwarikesh (+8.8%), Shree Renuka (+6.8%) and others gave a jump.
Markets Ahead
NIFTY is choosing to consolidate in the zone between 16,500 and 16,800 currently. It has currently taken resistance around this upper level after breaking a 4-week losing streak.
Even as NIFTY recovered, the midcap and smallcap stocks gave even better moves. IT and Pharma are seeing money pumped into it while Metals are taking a temporary break.
Markets’ current biggest enemy looks to be inflation, as the fears of war reduce. The next action from Europe is also keenly watched, as weekends have been volatile the previous weekends.
There are multiple sectors currently showing strength. As an example, we can take chemicals and sugars that we discussed above. Value stocks are being picked up despite the larger market consolidating.
Identifying strong stocks even in a week market environment is key. Make sure you do the same!
See you on The Stock Market Show at 7 PM!
