Today’s Market Summarised
Nifty tries to break out but sees profit booking and falls.
Nifty opened the day at 16,657 and was trying hard to move up. It crossed 16,700 for a brief while but could not sustain. Profit booking was seen and the market looked weak after this. Nifty closed the day at 16,634, up 10 points or 0.06%.
Bank Nifty opened at 35,792 and moved up to cross 35,800. The breakout was not sustained and profit booking pulled down the index. With the fall, 35,500 was taken as support and Bank Nifty closed the day at 35,586, down 125 points or 0.35%.
Almost all sectoral indices closed with consolidation. Nifty IT(+0.73%) was the index that showed the most strength.
Most Asian markets closed mixed in the day. All the European markets are currently flat and mixed.
News Picks
Adani stocks continued their bullishness from yesterday. Adani Ports(+3.6%), Adani Ent(+2.6%), Adani Green(+5%-UC), Adani Transmission(+5%-UC), ATGL(+5%-UC), Adani Power(+5%-UC) closed in the green.
ONGC(+2.1%), OIL(+2.8%), Hind Petro(+3.2%) and some other oil-related stocks moved up with the crude oil prices bouncing back up internationally.
India FM says Govt will have only a minimal presence in the banking and insurance sector. Public sector insurance stocks including NIACL(+7.4%) and GICRE(+12.9%) jumped up in hopes of privatisation.
Escorts(+3.4%) share is up over 12% this week on Japan’s Kubota showing strong outlook for India business.
Havells(-4.8%), Voltas(-1.3%) and Tata Power(+0.1%) remained weak in the day after Bank of America(BofA) downgraded their projections on the stocks.
Bajaj Finserv(-3.3%) saw profit booking and closed as Nifty’s top-loser.
Hindalco(+2.3%) extended gains to over 7% in 3 days after laying out plans for $2.5 Billion to $3 Billion(~Rs 21,500 crores) on capital expansion over the next 5 years.
Poultry stocks including Avanti Feeds(+5.1%) Venkys(+11.6%)
SKM Egg Products(+8.5%) gained well in the day.
Cabinet approved an increase in Fair & Remunerative Price(FRP) of sugarcane by Rs 5/quintal. Sugar stocks reacted and moved up.
EID Parry(+7.1%), BalramChini(+3%), Dalmia Sugar(+5.8%), Shree Renuka Sugar(+5%-UC) closed in the green.
Markets Ahead
Bank Nifty showed in the morning itself that it was not in a mood to move up. But Nifty on the other hand, tried to cross 16,700 even without power from banks.
Reliance, Infosys and TCS were boosting the index to its all-time high, but profit booking pulled it down.
Bank stocks including ICICI Bank and HDFC Bank were weak after the first hour. Other financial stocks including HDFC and Bajaj Finserv were also weak.
An interesting level to watch out for in HDFC Bank will be that of Rs 1,565. This was the high made by the stock on the day after RBI announced that the bank could start issuing fresh credit cards. This level is being taken as a resistance currently, and a breakout may help Bank Nifty cross 35,800 with ease.
Reliance has moved up and closed at its highest level since 23rd June with today’s bullishness. The stock is now just 7.2% down from its 52-week high created last September.
Tomorrow is the monthly expiry and you can expect volatility like today. Not expecting a breakout in the index tomorrow above 36,000, but we may see consolidation.
Where do you think Nifty will close tomorrow? Will it be above or below 16,700? Let us know in the comments of the marketfeed app.
