Today’s Market Summarised
Power seen in the market closing in the green since Monday.
NIFTY opened the day at 17,979 with a gap-up of more than 100 points. After consolidating in a tight zone till afternoon, the index gave a breakout above 18k and kept on rallying. With power towards the closing, NIFTY closed the day at 18,102, up 229 points or 1.28%.
BANK NIFTY opened the day at 38,733 and moved down. The index somehow found support at the 38,500 mark and slowly moved back up. BANK NIFTY could not break yesterday’s high and closed the day at 38,733, up 173 points or 0.45%.
NIFTY IT(+2.1%) led the gains for NIFTY today, along with NIFTY REALTY(+1.65%), NIFTY FMCG(+0.96%) and NIFTY FINSERV(+1%). All other sectors showed consolidation.
Asian markets closed mostly in the green today. European markets are trading mixed currently.
News Picks
IT stocks showed power in the day and closed among the top-gainers. TechM(+4.1%), Wipro(+2.8%) and Infy(+2.7%) closed with good gains.
Other IT stocks LTI(+4.2%), LTTS(+2.2%) and TCS(+1%) also closed with gains in a day where all NIFTY IT stocks closed in green.
Hindalco(+3.2%) moved up after the company reported Q2 consolidated Net Profit of Rs 342 crores, nearly 20% up from last quarter and better than the estimates of Rs 280 crores.
HDFC(+2.8%) closed in the top-gainers list of NIFTY 50 really close to its all-time high from Monday. Group companies HDFC Life(+2.5%) and HDFC Bank(+0.3%) also closed in green.
ICICI Prudential Life(+4.7%) and SBI Life(+1.8%) also moved up from the life insurance sector. Most Fin Nifty stocks closed in green.
Bajaj Auto(-3%) moved down with bearishness through the day and closed as NIFTY’s top-loser. The company is discontinuing one of its most successful models, the Pulsar 220.
Indigo(+7.3%) gained to reach near all-time highs. The airline CEO had said yesterday that Air travel is seeing a swift recovery.
Godrej Consumer(-3.2%) continued its fall from yesterday after announcing its results. The FMCG index still closed in green with heavyweights Britannia(+1.2%), Hindustan Unilever(+1.2%), ITC(+1.2%), Nestle India(+1.5%) and Tata Consumer(+1.2%) closing more than 1% up.
Fino Payments Bank listed in the market today at Rs 544.35/share, at a discount of nearly 6% to the issue price of Rs 577/share.
Motherson Sumi(+3.5%) saw volatility and shot up after Q2 Consolidated net profit drop of nearly 40% YoY to Rs 217 crores, but still slightly better than estimates. Bharat Forge(-0.9%) fell after reporting their results.
Shares of Idea(+4.5%), Reliance(+1.5%) and Airtel(+2%) closed with gains. Vodafone Idea Q2 loss narrowed slightly to Rs 7,132 crores. Average Revenue Per User improved to Rs 109.
Markets Ahead
There was a mood for heavy consolidation through the morning. And we saw higher and higher call options being written at the level of 18,000. This was one of the major reasons for today’s rally. Because once this 18k mark was broken by NIFTY, there was a strong and steady short-covering rally in the market.
Reliance once again closed in the green. Also, like we discussed yesterday, NIFTY IT was in a strong support zone. And today we saw a bounce-back of 2% in the index.
There is a new notification that for F&O traders with effect from 1st December, a 50% cash margin will be required for F&O. Earlier you could pledge securities for margin cover in full, but now you need to have 50% cash in the margin. This could create some volatility in the market.
Will be interesting to see if foreign institutional investors were net buyers today. NIFTY has closed the week in green even while BANK NIFTY has closed well in the red of more than 2%. Keep an eye out for a bounce back from banks as well in the coming days if the rest of the market show strength.
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