Today’s Market Summarised
Markets move up again with Reliance and Infosys leading the gains.
NIFTY opened the day at 17,185 with a gap-up. After some tight consolidation, it hit the day-high at 17,250 by 2:20 PM. It fell towards the day-low in 30 minutes and quickly recovered again. NIFTY ended the day at 17,233, up 147 points or 0.86%.
BANK NIFTY opened the day at 35,315 and fell. It took support at 35,000 and bounced back. After some last hour volatility, Bank Nifty ended the day at 35,183, up by 126 points or 0.36%.
All sectoral indices closed in the green today. NIFTY AUTO (+1.3%), PSU BANK (+1%) and IT (+0.97%) closed well in the green.
Most Asian markets are closed in the green today. All European markets are trading in the green currently.
News Picks
Asian Paints(+2.9%) gave a breakout and closed among the top-gainer in NIFTY 50. The stock is at its highest level since September.
Sunpharma(+2.6%) moved among the top-gainers after receiving DCGI approval to launch and market the Covid drug Molnupiravir in India. Cipla(+0.33%) also gained approval.
All stocks in NIFTY AUTO closed in the green. Gains in NIFTY 50 were led by M&M(+2.4%) and Tata Motors(+1.9%).
Chemical stocks including Deepak Nitrate(+3.9%), Pi Industries(+3.8%), Tata Chem(+3.1%) and Pidilite Industries(+3.1%) closed with gains.
RBL Bank(+3.3%) bounced back slightly after yesterday’s fall.
Major FMCG stocks are trying to gain back after their fall in the past few months. ITC(+1.1%), Tata Consumer(+1.1%), Godrej CP(+1.3%) and Britannia(+1%) closed with 1% gains.
Ajanta Pharma(+3.9%) moved up after approving buyback of shares at Rs 2,550. Current market price is around Rs 2,265.
Tyre stocks gave breakouts with high volumes today. CEAT(+11.6%), Apollo Tyres(+2.9%), MRF(+1%), JK Tyre(+10.3%), Balkrishna(+2.4%) and others saw heavy buying till the day’s closing.
Delhi Chief Minister Arvind Kejriwal says Delhi should impose some restrictions to curb virus spread. Cinema halls have been completely shut and led to fall in PVR(-3.7%) and INOX(-0.26%) from their day-highs.
Eris Life(+6.5%) closed with gains after Motilal Oswal initiated coverage with a BUY call on the stock.
Devyani International(+4%) gave a breakout after falling for 10 straight days. Keep an eye on further power from the stock.
BSE(+5.3%) opened with a big gap-up after the board announces it will consider a bonus issue on February 8.
With US Crude Oil prices gaining back, ONGC(+1.5%) and OIL(+6.7%) closed the day with gains.
IDFC(+10.3%) continued its breakout from last week after the approval of Anil Singhvi as Chairman.
Supriya Lifescience lists at Rs 421 with listing gains of 55%. It closed at Rs 389, up 42%.
Markets Ahead
Most stocks from NIFTY 50 closed in the green today. But interestingly, not even one stock from the financial sector closed among the top-gainers today.
There are multiple restrictions announced in Delhi and partial lockdown. As we discussed above, theatres have been closed along with educational institutions. As Omicron concerns increase across the country, there are more and more restrictions being announced. But markets don’t seem to be affected by this anymore.
Most stocks from Tata Group moved up today including two NIFTY 50 top-gainers. TCS also might see more movement following other IT stocks. Reliance is trying to move above 2,400 in the immediate bounceback.
NIFTY has re-entered a consolidating pattern after last Monday’s fall. If it moves back above the trendline is only when we can say there is a trend reversal in the market. The first level to watch out for is 17,400 after which we’ll have to look for a close above 17,600. Another fall below 17,000 will be indicating a return of bears in the market.
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