Today’s Market Summarised
Nifty opened the day at 11,679, near yesterday’s high of 11,680, with a slight gap-up tracing SGX Nifty. Interestingly, the index took support at 11,630 after forming two red candles and shot back up. With good support from Reliance, Nifty was able to shoot up till 11,750 very quickly. For the rest of the day, Nifty traded between 11,690 and 11,750, before jumping up at 2.30pm to touch a day high of 11,763. Nifty closed the day at 11,738.85, up 76 points or 0.66%. Nifty closed in green for the 5th day in a row.
Bank Nifty opened the day very similarly to Nifty, at 22,811 and went down to take support near 22,600. After going back up till 22,300, it found strong resistance and went down. The index tested 23,000 multiple times through the day and closed at 22,964, up 111 points or 0.49%.
Nifty Auto was the best performing sector for the day. And as we can clearly see, no other sector specifically contributed to today’s jump.
Asian markets closed mixed for the day. European markets are trading a bit in red.
News Picks
Shares of Reliance finally moved, and featured in the top gainers list today. Reliance had confirmed yesterday that Abu Dhabi’s sovereign fund is investing Rs 5,512 crores in Reliance Retail for a 1.2% stake. Share prices closed at Rs 2,259.40, up 2.22%. A high of Rs 2,309 was hit early in the day. It pushed Nifty up the most, due to its very high weightage in the index.
Shares of TCS gained after 2.30pm from red to close at Rs 2,752.80, up 1.42%. Q2 results of the company are set to be announced today, after market hours.
Infosys has gotten an order from Switzerland-based company Mobile Health AG for electronically patient-reported outcomes platform – Consilium Care. Share prices closed at Rs 1,070.10, up 1.36% after coming back up just before the market closed. You can watch the stock for tomorrow also, as TCS Q2 results will affect Infosys also.
Shares of Blue Star, the air-conditioner manufacturer closed up 3.66% at Rs 642.70 after they announced a new range of products capable of virus deactivation, including COVID-19.
Oil & Gas Stocks moved higher on news of CCEA approving guidelines for natural gas marketing. There are multiple news pieces on the oil sector from today. Will try to cover this in tonight’s Top 10 Market News.
From the top gainers list in Nifty, 3 were from the Auto sector. There was positive news coming from the quarterly sales of all top manufacturers. And with Navarathri, Diwali and Christmas coming up, the sector can be looked at for good swing opportunities.
Markets Ahead
One point to note is that India Volatility Index (VIX) ended higher by 2.2% today. This shows that markets are getting more volatile, and is an indication of caution for investors.
11,800 is a very strong resistance for Nifty and we may see the index taking resistance there. With tomorrow being the weekly expiry as well, we can expect some shocking moves by Nifty’s best stocks. Do not forget to watch out for TCS, which is flagging off the Q2 results season.
As we had talked in yesterday’s article, Banks continue to perform. 23,000 level is a big level for Bank Nifty and can be watched very closely.
Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.