Today’s Market Summarised
Nifty opened the day with a small gap-down at 11,864 and took resistance at 11,900 and 11,950 today. While IT and Auto pushed the index up, Pharma formed a few red candles but soon started going back up. So ignoring the wick in the first 5 minutes, Nifty traded in a small range today. After European markets opened in red and started falling, Nifty calmed down a bit. The index consolidated the whole day to close at 11,896.80, up 23.75 points or 0.20%.
Bank Nifty opened the day with a gap-down at 24,148 and went down a bit in the initial few minutes. But the index gradually gained momentum throughout the day and closed flat at 24,311, up 45 points or 0.19% from yesterday.
Nifty Realty went up the most today, with the continuing bullishness from stocks like Godrej Properties. Nifty PSU Bank fell, in fear of government’s divestment plans. Barring Realty, Nifty IT went up the most today, while most other sectors remained flat.
Asian and European markets are mixed today. Let us wait for cues from the US markets and SGX Nifty for tomorrow’s trends.
News Picks
JSW Steel stock has been in a steady uptrend for the last month gaining about 18% since 20 September. Yesterday, news had come out that LIC increased its stake in the company to 3.40% from 2.43% in the September quarter. Today share prices closed at Rs 318.70, up 1.66%.
Shares of Hindustan Unilever Ltd closed in red after trading in green the whole day. Results of the company were published in market hours, and jumped 8.7% to Rs 2,009 crores for the Q2. Operations and services are said to be at pre-covid level now. Revenue is up 16% to Rs Rs 11,442 crore. Profit booking took the stock price down 3.5% in just 15 minutes after the results were announced. Share prices closed at Rs 2,174.20, down 0.17%.
Shares of Just Dial hit their 20% upper circuit today at Rs 605 today. The stock has been in a constant uptrend and has gone up almost 80% in the last month. This has been happening after promoter Anita Mani acquired more than 1% stake in the company through the open market. Between September 25 and September 30, 2020, Anita Mani purchased 6.79 lakh equity shares of Just Dial for Rs 25.33 crore, according to disclosure made by the company to the stock exchange. It is unclear whether the promoter is still shopping for this stock in the open market. As we know, promoters increasing stake is always a good sign for the stock prices. Hope profits were booked!
Share prices of Britannia crashed after even the 20% year-on-year rise in profits for Q2 FY21 failed to impress investors. After opening with a gap-down, share prices kept falling to close at Rs 3,552.90, down 5.82%. Anyone who entered a long straddle option strategy keeping in mind the volatility after the results would have profited here!
Granules India has announced its Q2 results with a YoY 71% profit jump to Rs 164 crores.
Shares of Idea pulled back from a small downtrend to close at Rs 8.75, up 10.06%. The company had yesterday announced that prepaid subscribers can now roll over unused data to weekend, but this won’t be the reason specifically for the jump.
The IT and Auto sectors rebounded from their downtrend, as discussed by us in our morning article here. Hope you were able to take some good trades in these sectors. Pharma closed in green after gaining before noon.
Equitas Small Finance Bank IPO has opened today and is seeing healthy subscription rates. Contact your bank to apply.
Shares of Government of India owned KIOCL crashed 10% to Rs 122.45 after the company announced a buyback at 19.3% discount to Monday’s closing price. As we talked about yesterday, PSU stocks are going to be very volatile in the coming weeks and it is best to stay away.
Markets Ahead
PM Modi is set to address the nation at 6 pm today. As intelligent stock market participants, we need to analyse the speech for any major economic cues which might affect Nifty tomorrow. The implied volatility (IV) in the market has increased, and we can see the small bullishness if you go through the option chain. The Finance Ministry is also looking into an economic stimulus package, that could be presented as a “Diwali surprise”. marketfeed will write an in-depth analysis of the speech and how it may affect the markets, if there are any interesting points.
Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.