Today’s Market Summarised
Nifty had a flat opening at level 11,478, and consolidated between 11,440 and 11,500 today. The index again offered amazing opportunities for option traders, as the patterns formed gave many scalping opportunities. After trading in red for the majority of the day, Nifty 50 broke out to close at 11,535, up 64.75 points or 0.56%.
Bank Nifty too had a flat opening and quickly fell after opening at 23,837. The bank tracking index moved between 23,500 and 23,700 for most of the day. After the Supreme Court hearing on moratoriums, banks shot up above these levels which helped Nifty as well. The index closed at 23874.55, up 62.55 points or 0.26%.
Nifty Media gained the most today, backed by the rally of Zee Entertainment Enterprises Ltd today. ZEEL was the top performing stock in Nifty 50 today, going up 7.53%.
Asian markets are mixed today. European markets are trading in green, and look very confident today.
News Picks
Shares of Idea closed at ₹10, up 12.99% after the company initiated proceedings for fundraisings to pay AGR dues. Even though the current situation is bad, investors are hoping for the company to make a comeback. Do you think that the company can survive its current state of high debts?
Nifty Auto gained after auto-sales data for August turned out to be positive. The top gaining stocks from the sector were M&M (up 6.13% to ₹644.8) and Tata Motors (5.11% to ₹151.15). Tractor manufacturer Escorts gained 9.58% too, after tractor sales increased 80% YoY in August. We had talked about this in the morning feed here, and I am pretty sure it was an easy day for you if you traded in these stocks.
Banks shot up after 2pm from red to close in green today. Hearing of reduction of interest on loans under moratorium will continue tomorrow. You can check the charts to see how beautifully the index shot up, after consolidating.
Shares of Adani Green closed at ₹544.10, up 10% as the company was declared the world’s largest solar power manufacturer. The stock is currently trading at an all-time high now.
Infosys gained over 1% today to close at ₹923.6, after the company laid out its plans for fresh hirings in America.
Shares of ZEEL closed at ₹217, up 7.53% after the company decided to launch a game-changing OTT platform. It was Nifty’s top gainer for the day.
Markets Ahead
Nifty has closed in the green for the 2nd day in a row. The confidence of the index above 11,500 was apparent with strong closing at 11,535 level. Gold prices are falling, and the government is rolling out more schemes for boosting the economy. Moratorium extension of up to 2 years is in discussions, with the worst affected industries like reality set to receive it. My thoughts are still mixed on the moratorium judgement. Jobs will be wiped out of the economy if the moratorium is stopped, with businesses struggling to cope with the low demand. But also, a moratorium can hide bad loans from the eyes of the banks and will be a ticking time bomb. Further discussions on the matter will continue in the Supreme Court over the next few days.