Today’s Market Summarised
Nifty opened the day at 11,517 with a gap-up. The index could not hold the gains and fell, and took support at 11,470. After consolidating between 11,470 and 11,490, Nifty broke out of its upper bound. With amazing momentum, Nifty 50 was able to close at 11,549.60, up 77.35 points or 0.67%.
Nifty Bank opened the day at 23,186 with a small gap-up. The index took support at 23,170 and went on to close the day at a strong 23,414.20, up 322 points or 1.39%.
Nifty Media was the top gaining sector today, with Nifty Auto and Nifty Bank just behind it. Private banks outperformed PSU banks today.
Asian markets closed flat for the day. European markets are mixed at the time of Indian market close.
News Picks
Tata Motors was the top gaining stock in Nifty 50, closing at ₹138.40 up 8.89%. Yesterday, the company had announced its goal to be net-debt free in the next 3 years. By checking major resistance levels in the chart, it is not hard to see why the stock gained this much.
2-wheeler stocks jumped today after the Finance Minister, Nirmala Sitharaman, said that the GST council is considering reduction of taxes for the category. Nifty Auto closed up 1.46% with key 2-wheeler companies pushing up the index.
Hero Motocorp – ₹3,159.95, up 6.4%
TVS Motors – ₹467.30, up 4.88%
Bajaj-Auto – ₹3,076.00, up 2.21%
Shares of DLF gained 2.11% to close at ₹159.70. The company had decided to move into the mid-income housing segment to diversify from its current luxury housing market.
JMC Projects opened with a gap-up to end the day at ₹60.15, up 12.64%. The company had earlier received orders worth Rs 554 crores in the building and factory segment. It has won orders worth Rs 4,000 crores till date in FY21.
Shares of Aklyl Amines traded at an all-time high, closing at ₹3,499 up 6.72%. The chemical manufacturer’s shares have jumped by 400% in a 1-year period.
Private banks rallied today with IndusInd Bank and Kotak Bank being among the top gainers in Nifty 50.
Shares of ZEEL closed at Rs 210.75, up 5.40% after breaking multiple resistances. The company is scheduled to get kicked out of Nifty 50 along with Bharti Infratel.
Markets Ahead
Indian markets are closing in green for the 4th trading day in a row. Markets seem to have regained its bullishness, with Nifty closing just under 11,550 for the day. With the RBI annual report for 2019-’20 saying that the economy could turn around by Q4 FY21, there is a general positive sentiment in the market. Operation Twist to cool down bond yields is yet to produce results for the Reserve Bank of India. Under the mechanism, the apex bank buys long-term bonds and sells short-term bonds. When bond yields go down, equity markets usually benefit. We will discuss more about Operation Twist in an upcoming Marketfeed Article.