NIFTY opened the day with a huge gap-up of 176 points at 17,711. The index was a little volatile with multiple consolidations in between. Profit booking wasn’t strong to bring the index down and NIFTY closed the day at 17,659, up by 124 points or 0.71%.
BANK NIFTY started the day at 38,712, up by 1%. The index tried to move up in the first 30 mins and then consolidated in a tight 90-point range. Bank Nifty ended the day at 38,879, up by 592 points or 1.55%.
Nifty PSU Bank (+2.3%), Nifty Realty (+1.2%), Nifty IT (+1.7%), Nifty Finserv (+1.5%) and Nifty Bank (+1.5%) moved up.
Major Asian markets closed in solid green. NIKKEI remained closed on account of Japenese Mountain Day. European markets are trading flat in the red.
Today’s Moves
Axis Bank (+2.6%) closed as a Nifty 50 Top Gainer after it became the first Indian bank to launch Axis Receivables Suite, which helps to accelerate cash flow and reduce the time and cost of doing business.
Tata Consumer (-2.1%) closed as a Nifty 50 Top Loser after announcing Q1 results yesterday.
Yesterday’s Top Loser Bajaj Finance (+2.3%) was featured in the Nifty 50 Top Gainer list.
With NASDAQ rallying yesterday, all Nifty IT stocks closed with gains. HCL Tech (+1%), Infy (+1%), MindTree (+3.5%), Mphasis (+2.5%), TCS (+2%), TechM (+2%) and Wipro (+1.9%) moved up.
Bank Nifty held the opening gains with the help of HDFC Bank (+1.3%), ICICI Bank (+1.2%) Axis Bank (+2.6%), SBIN (+1.9%), IndusInd Bank (+1.5%) and Kotak Bank (+1.3%).
IGL (+7.4%) and MGL (+5.9%) moved up after the Indian Government increased the allocation of domestically produced gas for the city gas operators.
BEML (+6.4%) shot up towards the end after fixing August 18 as the record date for share issuance by BEML Land Assets.
PVR (-3.1%) closed in the red despite its celebration of 25 years in the country. Inox (-4.1%) also moved down.
Wonderla Holidays (+20%-UC) hit 20% Upper Circuit after reporting a profit of Rs 64.4 crore against a loss of Rs 13.2 crore last year.
Markets Ahead
Yesterday was a great day for the US market as inflation came out below expectations.
Our Indian market was inspired by this and opened with a huge gap up. This Monday, we discussed the strong downtrend resistance line and Nifty opened exactly there. But the selling wasn’t strong as we expected since everyone is cautious about India’s consumer price inflation (CPI) data tomorrow.
Nifty is trading near a 4-month high and it can be watched. Bank Nifty was comparatively strong today since it could break the opening levels.
Yesterday, we talked about momentum coming into IT stocks. But sincerely, we did not expect such a rally in the tech-heavy NASDAQ index. NASDAQ has exited the bear market with a 20% recovery from the recent low.
India’s CPI data will be out tomorrow after market hours and we may see some volatility.
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