Tag: Stock market

Categories
Editorial

Rally May Not be Done Yet: CDSL Stock Analysis

CDSL or Central Depository Services Ltd is one of the two central depository services in India. You may have received several emails from them as you opened your Trading & Demat accounts. It was established in 1999 with the Bombay Stock Exchange (BSE) as its promoter. The depository became the first to hit 3 crore active users in India. 

The company has given a staggering ~272% return on investment over the past year. Before this, the share price was moving pretty much in a consolidated manner. There is definitely something that has triggered retail investors across the market since such returns were not seen in the past even when CDSL had healthy financials. 

From an investor’s perspective, CDSL is a ‘unique’ company. The company has a sustainable business model and stable financial growth over the years. In this piece, we discuss CDSL’s business model, financial stability, and growth prospects for the future.  

CDSL’s Business Model

The profits and stock returns of CDSL have increased after the COVID-19 lockdown was imposed last year in March 2020. India has managed to add the highest-ever number of 49 lakh Demat accounts in FY 2020. The company has 589 registered Depository Participants(DPs) across India and 290 lakh investors across the country.

Speaking of Demat accounts, CDSL earns close to 60% of its revenue directly or indirectly from Demat accounts. If you look closely at the revenue breakup, CDSL earns most of its revenue from Transaction Charges and Annual Issuer Charges. 

Transaction Charges

Every time a transaction takes place CDSL levies charges on it. A transaction can be buying, selling, or transfer of securities. The number of transactions has increased considerably over the past year and so has the income from the ‘Transaction Charges’ segment. 

Annual Issuer Charges

Coming to the Annual Issuer Charges segment. This is the cash cow of CDSL. According to SEBI regulations all listed companies need to establish a connection with both NSDL and CDSL. Listed companies pay ‘Annual Issuer Charges’ to both NSDL and CDSL. The ‘Issuer’ over here is the company whose shares would be traded. SEBI regulates ‘Annual Issuer Charges’ and renews them every five years. This is a fee that the depository charges to listed companies for being a custodian of their shares. Remember that even though shares are ‘traded’ on stock exchanges, they are ‘stored’ in depositories, which requires complex data warehouses that need maintenance. 

Largest KYC Registry

The Online Data Charges segment refers to KYC services offered by the company. ‘KYC’ or Know Your Customer is a very familiar term today. Opening a bank or Demat account or even investing in a mutual fund requires a KYC. It is a security verification process used by banks and companies to avoid financial fraud and money laundering activities. CDSL is the LARGEST KRA(KYC Registration Agency) in India holding 60% of the market share in the KYC of the capital market.

Other Income

The company offers services involving the transfer of securities during an IPO. It provides other services like hosting e-Annual General Meetings(e-AGMs) and e-voting for a nominal charge. The company also charges Electronic Consolidated Account Statements(e-CAS) that investors and traders receive every month. It also offers services for storing insurance claims and the commodities market receipts for commodities trading offered on platforms like Multi Commodity Exchange of India (MCX).  

Subsidiaries

In all, the company owns three subsidiaries:

CDSL Ventures Limited (CVL)

CDSL Ventures Limited (CVL) manages the KYC (Know Your Customer) business. The company is also a vendor for GST Suvidha centres. CVL held over 216 investor records, as of March 31, 2021. The company also maintains a claim registry for life insurance companies that offer Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

CDSL Insurance Repository Limited (CIRL)

CIRL is regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and is in the business of enabling policyholders to hold life policies, motor policies, health policies, and all other types of general (non-life) policies

CDSL Commodity Repository Limited (CCRL)

Just like share trading involves storing ‘share certificates’ in an electronic form. The commodities markets involve storing electronic warehouse receipts(e-NWR) for goods bought or sold.  CCRL is regulated by the Warehousing Development and Regulatory Authority (WDRA) and is in the business of holding and transacting in electronic negotiable warehouse receipts (e-NWR).

Supportive Financials

  • The company’s revenue and net profit have grown consistently since September 2018 as shown in the chart above. The company has grown at a CAGR of close to ~16% over the past 3 years. In the most recent quarterly results for Q4FY21, the company’s revenue grew by ~51% YoY. The Net Profit grew by ~89% YoY.
  • CDSL has an Asset-Light Model. The company does not have to invest in heavy machinery, land, or other fixed assets. This meant that the company does not have many fixed costs associated. 
  • CDSL’s main costs are Employee Wages and Benefits, Computer Technology Related Expenses which are largely fixed in nature. Any increase in revenue will naturally reflect on net profits. 
  • The company operates on zero debt.
  • The share price of the company has increased by ~272% over the past year and ~240% over three years. This could mean your investment in the stock would have multiplied more than 3.5x had you invested in the stock. 
CDSL Price and Volume Chart(Source: TradingView)
  • The company’s charts suggest that the stock picked up most of its activity in 2020. Trading volumes were relatively insignificant before that. The stock price is supported by strong volumes. FII or Foreign Institutional Investor’s shareholding in the company has increased by a staggering 7% in FY 2020-21.  

Conclusion

Let me tell you about the risks associated with CDSL. CDSL’s profit numbers are cyclical, just like the stock market. The more people invest, the more money it makes. Any reduction in trading or delivery volumes could impact profits. For the long term, the company needs to tackle regulation by SEBI, at the same time improving its technology. The company’s expenditure on employees’ salaries has increased over the years. 

The rally that CDSL saw in FY2020-21 filled many pockets. At this point, there are two possibilities, there could be profit booking which could mean that the share prices would eventually fall. The second possibility could be that the stock breaks the glass ceiling and the price would increase further. The only thing that is crystal clear is the monopoly that CDSL has in their domain, and this is likely to push long-term growth.

One can only speculate for the short term. What do you think about the stock? You may let us know in the comments section below!

Categories
Editorial

The Coal India Puzzle: Should You Invest For Dividend Yields?

Soon after independence, the Indian government nationalized most coal mines, which led to the birth of Coal India. Our country is the world’s second-largest producer of coal and this company was banked upon to have a big future. Coal India Limited is a government-owned entity that came into existence almost 50 years back in 1975. It is one of those esteemed Maharatna companies under the direction of the Government of India. As of 1st April 2020, Coal India Limited has 352 mines: 158 are underground, 174 opencast and 20 mixed mines. It produces around 83% of India’s overall coal production in India.

They make several coal products like coking coal, semi-coking coal, non-coking coal, middling, tar and others. It has been a single entity to operate in the Coal industry but since the last few months, there are rumours about some private companies being allowed to enter the market. If this happens, the coal business will have to be shared and their market share will eventually fall.

In recent years, Coal India is unable to meet its target of production which has increased the fears of privatization. On 16th May 2020, Indian finance minister Nirmala Sitharaman announced that India will further open up commercial coal mining, with revenue share arrangement, to boost the fuel’s production in the country. Two years before that the government had allowed commercial mining by private entities. Possibly more competition into the industry in the near future?

A look at the financials

Coal India’s total revenue generated has been on a constant rise since the fall it faced in FY2017. In the last five years, the company has seen their top-line increase at a rate of 4.84%. Their EBITDA (Earnings before interest, tax, depreciation and amortization) almost doubled from FY17 to FY19. 

In FY17, their EBITDA was Rs 17,763.51 crore which surged to Rs 30,840.91 in two years. Last year (FY20), they failed to surpass their top-line and EBITDA metrics marginally. This slight fall of 3% in total revenues can be attributed to the Covid-19 pandemic which started placing it foot by the 4th quarter of last year. Their net profits also decreased marginally by 4% to reach Rs 16,714.19 crore. 

This year has been challenging for this government-back entity. From March 2020 quarter to June 2020 quarter, there was a significant fall in demand. During this one quarter, their revenues fell by almost one-third. However, this fall was seen in every other company’s financials due to the nationwide lockdown. The point to put focus on is that from there on, there is an upturn in almost every meaningful financial metric. The chart below shows how the company has improved in each of its last three quarters of this year. 

A major point to notice is the Q4 of the last three years has been the most profitable for the company. If that’s just a coincidence or is for a special reason, that’s doubtful but if they continue to live up to that trend, Coal India will manage to do quite well on an annual basis even in these challenging times.

After facing a 55% dip in the net profits in Q1FY21 as compared to Q4FY20, they sharply rebounded in Q2FY21 with an increase of 42% in profits. This rollercoaster ride and quick upturn tell that they did well to weather the storm of lockdown and pandemic. With the results of the final quarter yet to be out, Coal India investors had every reason to be optimistic.

No capital gains?

Financials do seem to offer hope of a robust recovery however the charts say a different story. The drastic fall of March last year was the lowest point for many stocks. However, Coal India fell to its 52-week low of Rs 109 in October 2020. Since then, it is trying to move up but the chart below suggests that the journey has not been easy. It still seems to be on a sideways trajectory since last year.

Needless to say, it is way below its all-time high of around Rs 400-450. Hopefully, no one in our community is trapped from that price region. The FIIs have not been generous with the stock either. In December 2019, they held more than 8.5% stake in Coal India. This stake has been on a downward trend since then. In fact, it fell to 6.5% in December 2020. In a year when we have seen FIIs pumping money in huge amounts and stocks giving mega-returns, Coal India is following its own slow and steady path of recovery.

For long-term investment, the stock might look good considering the high dividend it issues. The company announced a second interim dividend of Rs 5 per share for the FY 2020-21 in March. Earlier in the same fiscal year, they have issued Rs 7.5 per share as dividend. In fact, they have maintained a high dividend payout of 78.66%. Based on the current share price, they offer a robust dividend yield of around 8.5%.

However, dividends do not attract me personally. There is no doubt that being a government-owned company and one of its kind in India, Coal India has a lot to offer. However, NSE offers you thousands of stocks. Do you think that Coal India should be your preferred choice of destination to bag returns in the short term?

Are you holding Coal India and still in losses? What are your opinions on the company and its future? You can have a completely different view on Coal India. So, do not hesitate and let us know in the comments section in the marketfeed application. Let’s learn and grow together!

Categories
Daily Market Feed Post Market Analysis

Nifty Closes Flat as Banks Lose Strength Near the Top. CONCOR up 8%. – Share Market Highlights Today

Today’s Market Summarised

A day of volatile consolidation across the market with Nifty closing flat.

Nifty opened the day at 15,221 with a small gap-up and tried to move up. But an immediate fall took Nifty down more than 100 points. From here, the volatile day continued with up and down movements through the day. Nifty even tried to break the day-high near 3 pm but fell once again. Nifty closed the day flat at 15,197, up 22 points or 0.15%.

Bank Nifty opened at 34,935 with a 300 point gap-up, and tried to stay above 35,000. A 500 point fall took the index back to Friday’s levels. Mostly Bank Nifty’s chart looked similar to that of Nifty’s including the last hour jump from all private banks. This time, resistance was found near 35,200 and Bank Nifty fell to close at 34,935, up 336 points or 0.97%.

Only Nifty Metal(- 0.60%) and Nifty FMCG(- 0.34%) closed in the red. Nifty PSU Bank(+2.1%) gained the most followed by Nifty Realty(+ 1.36%) and Nifty Media(+1.2%). All other sectors consolidated.

Major Asian markets closed flat in the day. All European markets are trading slightly in the green at the time of our market close.

News Picks

Cadila Healthcare launched the Ujvira drug, which it called as a breakthrough in breast cancer treatment. The stock shot up to 4% high in the morning session and later cooled down to close 1% up.

The global economy is recovering as the number of Covid cases falls slowly. Oil stocks like IOC(up 5%), BPCL(up 2.56%), Hind Petro(up 2.99%) gained in the day expecting relaxation in state restrictions will lead to more Petrol consumption.

Container Corporation of India said it has completed almost all one-off things before the strategic divestment. Also, the company said it is confident of the land license fee issue being resolved with the government. The stock gained 8% in the day.

Canara Bank is set to consider fundraising via equity route on May 28. The stock was up 5% in the morning but fell after this news came out. Canara Bank closed the day nearly 1% up.

Ramco Cements reported Q4 standalone net profit reported as Rs 214 crores, up 46% YoY and 6% up compared to last quarter. The stock fell 1.82% in the day.

India Cements fell sharply from day-highs to close 3.5% down after posting better than expected results. Q4 net profit of Rs 71.6 crores, 15% QoQ. Even after the fall, the stock is up nearly 17% in May.

ShreeCements and UltraCemCo also featured among the top-losers of Nifty 50 in the day.

M&M closed more than 1% down as the company said it does not plan to launch the Thar in Australia. This followed a court case by Jeep, saying that the Thar looks too similar to the Jeep Wrangler, which in my opinion is 100% true.

Russian Direct Investment Fund and Panacea Biotec launch production of Sputnik-V vaccine against Covid-19 in India. Panacea shares went to 5% upper circuit after the announcement.

Natco Pharma opened at 20% Upper Circuit and then the selloff dragged the stock down to close just 9% up. This was after the company received approval for its generic Lenalidomide capsules from the US health regulator.

Hero Motocorp said it will resume production at all manufacturing plants in India from today after shutting operations due to the lockdowns in the country. The stock was up 2.5% in the morning session but fell to close 0.5% up.

SBI opened with a 4% gap-up in the day, after posting their results on Friday. The stock closed just above 2% up in the day. Public Sector Punjab National Bank is up 4.6% in the day.

JSW Steel closed 2.4% down in the day after posting their results. The stock actually gained from being nearly 4% down in the day. Tata Steel was also down 1.9% in the day.

Power Grid Corporation has approved investments totalling Rs 2,202 crore for various power transmission projects. The stock closed 1% up.

Few days after Pidilite Industries touched Rs 1 lakh crore market cap, it again rallied nearly 4% to fresh all-time highs.

Realty stocks like DLF(+3%), GodrejProp(+3%) , Sobha (+5%) moved higher on the expectation of lockdown rules easing soon.

Markets Ahead

Nifty closed flat for the day but was very volatile. What was interesting to see was the last hour volatility in Bank Nifty. The index gained 400 points then lost the gains as quickly. IndusInd Bank was 1% down and Axis Bank is 1.4% up, usually 2 stocks that move together.

Overall a really boring day for the market, except some stock specific moves here and there it was net consolidation in most indices.

Anyway, the week has started off well. From the US, there are public rumours that the GameStop short-squeeze Round 2 might happen again soon and lead to a series of market crashes like last time. Again, this is just a rumour.

Stocks that are likely to benefit from reduced restrictions, like DeltaCorp(up 8%), Realty stocks, and some hotel stocks are trying to move up.

Speaking of Hotel stocks, ITC showed strength near the close and closed 1% up. Ahead of the company’s results, expecting more strength in the stock.

Catch you all on The Stock Market Show tonight!

Categories
Daily Market Feed Post Market Analysis

SBI Results Wake up Bulls. Nifty’s Best Week Since Feb – Share Market Highlights Today

sbi

Today’s Market Summarised

Markets rallying up over the day with power from the highly bullish Bank Nifty. The day of financial stocks indeed!

Nifty opened the day at 15,000 with a 100 point gap-up and started moving up after a small delay. After trading in a 40-point channel for nearly 4 hours, financial stocks pushed up the index. Nifty broke the resistance at Monday’s high and closed at 15,175, up 269 points or 1.81%.

Bank Nifty opened at 33,748 and was highly bullish. The index consolidated near the 34,000 mark for many hours. But just around 1:45 PM, SBI announced its results and Bank Nifty again shot up over 600 points. Bank Nifty closed the day at 34,606, up 1,272 points or 3.82%.

All sectoral indices closed in the green today. But, Nifty Bank(+3.82%), Nifty PSU Bank(+ 3.8%), Nifty Finserv(+3.2%) and Nifty Realty(+1.15%) were the only indices to close more than 1% in the green.

Major Asian markets closed flat in the day. All European markets are trading in the green at the time of our market close.

News Picks

A day of financial stocks boosted Nifty to its best week since budget week in February. 

State Bank of India reported a Q4 standalone net profit of Rs 6,450 crores, up 80% YoY and 24% compared to last quarter. A dip in Net NPA was seen, from 1.81% last quarter to 1.50% this quarter(if taking moratorium loans also into account for Q3). This gave positivity to Bank Nifty who then rallied up led by HDFC Bank.

Private Banks lead by IndusInd Bank and HDFC Bank were bullish from the day-opening. SBI joined in later after the results announcements. All 7 out of 7 top-gainers were finance stocks.

HDFC and HDFC Bank pushed Nifty up by 100 points today. ICICI Bank, SBI, Kotak Bank, Axis Bank and IndusInd Bank gave nearly another 100 points to Nifty.

Indian government officials said in the day that a proposal for a stimulus package for the Indian economy is under works.

Maharashtra is planning to extend lockdown beyond June 1 on rising black fungal cases and non-availability of vaccines.

M&M(up 1.95%) continued its rally from and closed anong the top-gainers. Tata Motors also gained 1.75% in the day.

Hindalco reported a better than expected Q4 net profit at Rs 1,928 crores, up 188% YoY and 2% QoQ. The stock closed nearly 1.2% up in the day.

After market hours, JSW Steel reported a 56% quarterly increase in net profit to Rs 4,198 crores for Q4. Net profits are up 1,717% compared to Q4 last year. Results were similar to expectations.

After the subsidies on sugar exports were reduced by the government, sugar stocks like Balramchin(-3.3%), and EidParry(-1.3%) ended in the red.

Dr Lal Path Labs reported Rs 83.4 crore net profit, up 156% YoY and down 11% compared to last quarter. The results which were published after market hours are in line with expectations.

HPCL reported net profit of Rs 3,018 crores yesterday, and the stock opened with a gap up of 5% and closed 3% up.

Havells India fell more than 4% in the day, after announcing their Q4 results yesterday.

Markets Ahead

Yesterday, we expected and discussed about a bounce-back to 15,000 or above for Nifty. We did also expect SBI to make Bank Nifty crazy. But what we didn’t expect was the stunning rally from other private banks. Some people can even get confused if the results announcement was from HDFC Bank or SBI seeing how much HDFC moved up.

HDFC Bank and HDFC alone contributing nearly 100 points to Nifty with their high bullishness.

Interestingly, Bajaj Finance and Bajaj Finserv did not move much today. This was probably because they have already have given great returns this month.

Also interestingly, only five Nifty 50 stocks closed in the red. And no stock closed more than 1% down from the index.

Expecting more moves from fertiliser stocks in the next week, including from UPL which has already given a good return to investors. With the confidence from swing picks looking green, expecting another good week for the market next week!

Catch you all on The Stock Market Show tonight!

Categories
Daily Market Feed Post Market Analysis

Nifty Slips and Erases Tuesday’s Gains. Metals Continue Fall – Share Market Highlights Today

Today’s Market Summarised

A day of fall generally in the market, with most heavyweight stocks closing below their morning levels.

Nifty opened the day at 15,049 and was clearly weak. It fell nearly 100 points in the first 15 minutes of the day. This fall was gained back, and Nifty moved in a 60-point zone for more than 4 hours! Just after 2pm, large selling pressure took Nifty down to 14,900 levels. Nifty closed the day at 14,906, down 124 points or 0.83%.

Bank Nifty opened at 33,748 and could not stay above 33,800. Till 1 pm, the index was trading in a 240-point zone with 33,600(yesterday’s low) as support. When this level was broken, we saw a further fall till 33,280 levels. Bank Nifty closed at 33,334, down 350 points or 1.04%.

Nifty Metal(down 3.2%) was once again the worst-performing sector of the day. Nifty Realty closed 1% up, with some bullishness in the sector. All other sectors moved less than 1%.

Major Asian markets closed flat in the day. All European markets are also trading flat at the time of our market close.

News Picks

The recovery in US markets and SGX Nifty was not enough to keep the bulls happy today. Markets fell sharply near the end, after consolidating all day.

M&M closed as Nifty’s top-gainer, as the stock continued its bounce back from its support at Rs 740. A new base-level Thar is also expected to launch soon, boosting sales for the company.

Shares of Cipla closed 2.2% up after the company announced a new Covid-19 testing kit called ViraGen. It is Cipla’s third product in the Covid-19 testing segment.

Only 3 stocks from Nifty 50 closed with more than 1% gains. Meanwhile, Nifty Metal stocks continued to heavily fall.

Tata Steel(down 5%), Hindalco(down 4.5%) and Coal India(down 3.5%) led the table of top-losers in Nifty 50. With global commodity prices falling, such a fall was actually expected. SAIL(-5.56%) and JindalSteel(-4.93%) also fell heavily in the day.

Shares of Auto-ancillary maker Bosch closed 7.2% up in the day, after the company reported a 495% YoY increase in net profits to Rs 483 crores.

Fertiliser stocks opened with huge gap-ups today after the Central Govt increased fertiliser subsidy by 140%. Stocks including National Fertilizers(up 6%), RCF(up 4%) and Chambal Fertilisers(up 2.5%) closed in the green. Some stocks also saw profit booking, with UPL closing 1.87% down.

With asset quality getting better and profits doubling to Rs 276 crore for Q4, Indiabulls Housing Finance gained 8% in the day. Sister company, IndiaBulls Real Estate also gained 8.7%.

With confidence from this rally, Chola Fin(up 4.77%) and M&M Fin(up 3.9%) gained in the day. 

Cement stocks mostly closed in the green, but India Cements gained nearly 10.5% in the day.

Shares of Ircon International gained 5% in the day after a 1:1 issuance of bonus shares increased the demand for the stock.

Markets Ahead

Markets closed just above 14,900 for the day. The high resistance at 15,100 observed yesterday was not even touched as markets kept falling through the day.

Even though the market was boring for the most part, the last 2 hours made it a special day for the bears. 

With the sudden fall in commodity prices worldwide, metal stocks continue their fall. Nifty Metal is nearly 8% down from May 10th levels but is at a good support zone. Let us see if this level will be respected in the coming days.

But still, 14,900 is a good level to be taken as a support. Expecting a bounce-back to 15,000 or up if global markets turn bullish again.

SBI announces its results tomorrow, and some stellar numbers are expected. Let us wait and see how the stock will react in the short-term, and long-term holders will be smiling anyway. Remember what happened when the Q3 results were announced?

Another interesting weekly expiry for Nifty. With tomorrow being the last trading day of the week, I am expecting some consolidation in the market. That is, if SBI does not make Bank Nifty go crazy.

Catch you all on The Stock Market Show tonight!

Categories
Daily Market Feed Post Market Analysis

Nifty Tests 15,000 Support. Bears Waiting? – Share Market Highlights Today

Today’s Market Summarised

Consolidation day in the market, with Nifty showing bearishness after noon.

Nifty opened the day at 15,066 with a slight gap-down. It tried to move up in the first few minutes but could not break yesterday’s high. We saw Nifty consolidating in a 70-point range after this, using 15,050 as a support. But just around 1:30 pm, the index started falling sharply. 

More fall was seen towards the end, with Nifty closing the day at 15,030, down 78 points or 0.52%.

Bank Nifty opened at 33,765 with a gap-down and tried to move above 34,000. This was not successful and the index decided to consolidate in a 350 point range for the day. Interestingly, Bank Nifty closed the day below yesterday’s low at 33,685, down 237 points or 0.70%.

Nifty Media and Nifty Realty each closed 2% up. Nifty Pharma closed 1.22%. All other sectors traded bearishly with Nifty Finserv(down 0.98%) and Nifty Metal(down 0.92%) losing the most.

Major Asian markets closed in the red. All European markets are also trading in the red at the time of our market close.

News Picks

Brazil is facing problems in coffee production due to water issues. Brazil is the largest coffee producer in the world. So a rise in coffee prices globally is expected. Coffee companies Tata Coffee(+8%) and CCL(+4%) moved up in the day. But Coffee Day fell by more than 7%.

These three PSU Banks jumped up with unconfirmed reports saying that privatization will also include Central Bank(+4%), Bank of India(+4%), IOB(+5%).

Indian Oil Corp reported a net profit of Rs 8,800 crore for Q4 against a Rs 5,188 crores loss last year. Profit numbers are up 87% compared to last quarter. The stock moved up after the news and closed 1.5% up.

BPCL fell sharply but recovered in the day after reports said that the timeline of major privatisations like BPCL were being moved back. Stock is 0.45% down. This happened even as peers IOC and Hind Petro(+ 2.92%) closed with gains.

Happiest Minds has partnered with Coco-Cola Bottling Company to help with their robotic automation. The stock jumped up but closed just 1.5% up.

Shares of Coal India closed 3.7% up in the day, even with Nifty Metal looking weak. The company, which has only gained 23% in the last 1-year is expecting good results as steel companies have been reporting good production numbers.

After Tata Motors reported a consolidated net loss of Rs 7,585 crore for Q4, the stock closed 5.4% down near its opening level.

The realty firm Brigade Enterprises reported a sharp rise in its consolidated net profit at Rs 39.57 crore. The stock was 10% up just after the market open but fell down to close just 3.9% up. This inspired many other realty stocks to move up, with Godrej Properties closing 2.2% up.

Pharma shares closed among Nifty’s top gainers today with SunPharma(up 2.21%) and Cipla(up 2.21%). The pharma index is trying to move back up after multiple days of falling.

Steel stocks saw a fall afternoon, just like yesterday. With this Jindal Steel(– 4%), National Aluminium(-3.15%) , SAIL(down 2.5%) closed in the red. JSW Steel and Tata Steel featured in Nifty 50’s top losers list.

Finance stocks including HDFC(down 1.7%), HDFC Bank(down 1.25%), Kotak Bank(down 1.4%) and Bajaj Finserv(down 1.6%) closed among Nifty’s top-losers as financials came under selling pressure.

WockPharma is up by 7.7% hitting its two year high.

Markets Ahead

With yesterday’s high again acting as a resistance, Nifty is now resting. It was a general day of consolidation in the market with bearishness near the end. 

Reliance broke the 2,000 level today and gave a really good move, as we expected it to yesterday. But the stock came down later. The stock helped Nifty stay above 15,000 level along with SBI, which did not fall along with other finance stocks.

With the rupee stabilising, pharma stocks are trying to move up again. The index is close to its all-time highs and might see a breakout soon.

The 15,000 support was tested multiple times but held strong in the day. We cannot call it a bearish day at all, and know that 14,900 is the next support to look at for tomorrow. 

The reason for Nifty’s fall was just a change in sentiments internationally ahead of the US Federal Reserve’s meeting details. Interest rates are expected to remain unchanged even as inflation has increased. Gold prices have been spiking as a result. Click here to learn how all you can invest in Gold.

Market might close between 14,900 and 15,100 tomorrow with the data we have now. If global markets turn even more bearish, 14,900 support might be broken and you could look into 14,800 as the next zone.

Hope you had a great day in the market.

Catch you all on The Stock Market Show tonight!

Categories
Daily Market Feed Post Market Analysis

Nifty Closes Above 15,100. Auto Stocks Shine – Share Market Highlights Today

Today’s Market Summarised

What an opening for Nifty in the market, with all indexes and most stocks opening with good gap-ups.

Nifty opened the day at 15,075 with a 150-point gap-up. This was the highest gap-up since March 3rd. It took support at 15,050 and stayed the whole day above this level. For the most part of the day, the index traded in just a 50-point range. Nifty closed the day at 15,108, up 185 points or 1.24%.

Bank Nifty opened nearly 500 points gap-up at 33,928 and even went on to break the 34k mark for the first time since 29th April. Heavy consolidation was seen in a 300 point zone just around the 34,000 mark. Bank Nifty closed the day at 33,922, up 463 points or 1.38%.

Only Nifty PSU Bank(down 1.3%) closed sharply in the red today. Nifty Auto(up 3.22%) performed the best, going up throughout the day. Nifty Metal(up 1.66%), Nifty Pharma(down 0.2%) and Nifty FMCG(down 0.2%) fell sharply after the gap-up openings.

Major Asian markets closed in the green. All European markets are also trading in the green at the time of market close.

News Picks

Reliance Jio said it is constructing the largest international submarine cable system centred on India with global partners to cater to increased data demand. Reliance went up to Rs 2,000 mark and closed 1.3% up.

Bharti Airtel reported a consolidated net profit of Rs 759 crore, down 11% compared to last quarter. The Average Revenue Per User(ARPU) numbers also fell to Rs 145. The stock fell 2.4% in the day and closed as Nifty’s top loser.

Auto stocks went up considerably in the day, with all stocks in Nifty Auto closing in green. Ashok Leyland(up 6.5%), M&M(up 5.85%) and Bajaj Auto(up 5.25%) went up most in the day. 

Tata Motors moved 3.5% up ahead of Q4 results. Results are expected to be published today after market hours.

Hero Motocorp has restarted production at three of their plants yesterday. The stock moved 1.8% up.

Bharat Forge to purchase remaining stake in Kalyani Strategic Systems, and make it a wholly-owned subsidiary of the company. Bharat Forge closed 3.5% up.

Canara Bank fell sharply and closed more than 4% down in the day. The PSU Bank reported net profit of Rs 1,011 crore, but Gross NPA rates have moved up to 8.93% vs 7.46% last quarter.

Quick Service Restaurant stocks like Jubilant Foodworks(up 5%), Burger King(up 9%), Westlife Development(up 4.5%) performed well on the day. You can read more about the industry here. They moved as KFC and Pizza Hut franchisee Devyani International filed for a Rs 1,400 crore IPO yesterday.

Global crude oil prices touched $70/barrel for the first time since March, with expectations of demand recovery. After the news, oil stocks like IOC(3.5%), HindPetro(5%), ONGC, OIL, BPCL(all up 1-2%) moved and closed in the green.

The recently listed drug firm Gland Pharma reported a 34% rise in its consolidated net profit to Rs 260.4 crore for Q4. The stock closed 9% up in the day.

After market hours, Torrent Pharma reported consolidated net profit for Q4 at Rs 324 crores, up 3% YoY and 9% compared to last quarter. The stock closed 1.5% down in the day.

Titan closed nearly 5% up at Rs 1,540 in the day, continuing its rally from the Rs 1,400 support that we had discussed at the beginning of May.

Markets Ahead

Nifty has blown away even the expectations of bulls by opening above the 15,050 resistance level. And interestingly, this level was taken as a support in the day, indicating bullishness. Nifty has closed at its highest level since 10th March.

Even though SBI looked weak, Reliance and HDFC Bank supported the market in today’s rally. Just these 2 stocks alone contributed 60 points to Nifty’s 180 point gain. But we saw a lot of active participation from all heavyweights today.

The next immediate support for Nifty looks to be at 14,900 if 15,000 is broken. 15,100 was respected today, and the market closed above this. I think we will be seeing more bullishness in the days ahead with Nifty moving to 15,200 and above.

Suddenly, all-time highs look possible again for Nifty, with Bank Nifty still far away from its all-time high levels.

The last-minute increase in the premiums of call option contracts even though Nifty stayed flat is interesting. This too indicates more bullishness.

If SBI does help Bank Nifty ahead of its results, more movement can be seen. Reliance could not break the 2,000 marks today, keep an eye out for the level tomorrow. If SBI and Reliance do not support the market, we might see consolidation.

Catch you all on The Stock Market Show tonight!

Categories
Daily Market Feed Post Market Analysis

Bulls Take up Bank Nifty 4%. SBI Rallies Ahead of Results – Share Market Highlights Today

Today’s Market Summarised

A day dominated by bulls in the Indian market. Banks making a comeback with Bank Nifty up more than 4% over the day.

Nifty opened the day at 14,762 and tried to move down. Even as other sectors fell, Bank Nifty powered ahead to take Nifty back up. After some consolidation between 14,800-14,830, the index continued its upward journey by noon. After a highly bullish day, Nifty closed at 14,923, up 245 points or 1.67%.

Bank Nifty opened at 32,450 and was bullish from the start. It took support at 32,300 in the first candle and started shooting up. There was no consolidation for the index today, as you can clearly see below. 33,000 was broken with ease and so was 33,300. In fact, Bank Nifty even touched 33,500 and closed the day at 33,459, up 1,289 points or 4.01%!

Bank Nifty(up 4%), Nifty PSU Bank(up 3.8%) and Nifty Finserv(up 3.20%) gained the most in the day. Nifty Metal(up 2.29%), Nifty Auto(up 1.95%) and Nifty Realty(up 1.4%) were the only other sectors to move more than 1%.

Major Asian markets mixed, mostly in the red. All European markets are trading in the red at the time of market close.

News Picks

India reported worse than expected numbers for April’s Wholesale Price Index Inflation at 10.49% against 7.39% last April. This is an 11-year high. Despite this, markets rallied with even metal stocks making a comeback.

Financial stocks led the day in the market by being 6 out of the top 10 gainers in Nifty 50. IndusInd Bank(+7.36%), SBI(up 6.3%) moved the most in the day. SBI is expected to post its results this Friday.

Dr Reddy has tied up with Shilpa MediCare for the production of the Sputnik-V vaccine for 3 years. ShilpaMed has already been in a bullish mood for the last two months and closed 11% up with the new collaboration.

Dr Reddy also announced a tie-up with Apollo Hospitals for Sputnik-V rollout and closed 1% up as other Pharma stocks moved down.

TVS Motors said during the day that TVS Ntorq 125 has crossed the 1 lakh sales milestone in international markets. The stock closed nearly 3% up.

Profit booking brought down L&T shares after the company reported their Q4 results on Friday. The stock is down 2%.

After news of Adani Green taking over SoftBank-backed SB Energy for $650 million(Rs 4,700 crores), the stock opened at the 5% Upper Circuit of Rs 1,142 and remained there.

Cipla opened the day as Nifty 50’s top loser, down by nearly 2% after reporting Q4 numbers. The stock closed down by 2.5% as Nifty’s worst-performing share.

Meanwhile, Aarti Drugs reported a lower consolidated profit at Rs 51.7 crore in Q4FY21 against Rs 58.9 crore last year. The bad results had a very huge impact and the stock fell 8%.

After good Q4 results were published by BalKrishna Industries on Saturday, the stock rallied and closed 10% up.

Federal Bank reported a 59% YoY increase in net profits to Rs 470 crores for Q4. It was higher by 18% compared to last quarter. The stock was highly volatile and closed more than 2% up.

Colgate-Palmolive (India) closed more than 2% up after reporting a 52% YoY and  27% QoQ increase in net profits to Rs 315 crores.

Bharti Airtel has reported a Q4 consolidated net profit of Rs.759 crores against a Rs 5,237 crores loss last year. But it is still down nearly 11% compared to last quarter. Revenue is up by 11% YoY to Rs 25,747  crores. The stock closed nearly 2% down.

Life Insurance companies like ICICIPRULI, HDFCLIFE and SBILIFE closed in the red, between 1.5-2% down in the day.

IT and Pharma stocks remained bearish as rupee continued to strengthen. It is now at 73.30 against the dollar.

Markets Ahead

After last week’s close under 14,700, Nifty has shaken off the bears with Bank Nifty’s help. In fact, just HDFC Bank and ICICI Bank pushed Nifty up by nearly 100 points in the day,

Private Banks and PSU Banks were in a race against each other today. Even though IndusInd Bank closed as Nifty’s top gainer, SBI hit a fresh 2-month high today. 

33,300 was sustained by Bank Nifty for the first time in May. This is indeed a good indication. Like we discussed on Friday, Bank Nifty was the one moving Nifty around today. Most banking stocks jumped from near their support zones.

Inflation fears will continue to cause Nifty some fear near the 15,000 ranges. But if all goes well, we might see a gap-up opening near the 15k mark tomorrow. We will have to see if profits are booked or if the bulls will continue.

SBI’s results on Friday will be the major event in the market for this week. For now, all signs indicate bullishness but with the resistance at 15,000 and 15,100 continuing for Nifty. With the strong close from HDFC, HDFC Bank and Reliance today, we might continue to see some good movement from these stocks tomorrow.

14,700 and 14,800 can be watched as support levels till this Thursday.

Going with the flow this week, no matter which direction markets go to. And yes, metals have started moving back up for all still bullish on the sector. This is still a good dip if you believe the sector will continue to go up. And yes, I am still interested in the sector!

Catch you all on The Stock Market Show tonight!

Categories
Daily Market Feed Post Market Analysis

Market Closes Mixed. Asian Paints and UPL Shoots Up – Share Market Highlights Today

Today’s Market Summarised

A very mixed day in the market with very high volatility. Almost all sectoral indices closing in the red, but Nifty still closing flat!

After SGX Nifty’s dramatic turn from red to green, Nifty opened with a 50-point gap-up at 14,749. But this was not sustained and the index fell 130 points in the first 30 minutes! In the next half hour, it tried to move up another 100 points. After this, a sharp fall took the index down to 14,600.

Clearly a volatile day! But after this fall, Nifty slowly moved back up to close at 14,677, down 18 points or 0.13%.

Bank Nifty opened at 32,518 and moved around. The index was clearly bearish for the whole day, unlike Nifty which tried to move back up. It tried to take 32,300 as support but broke the level before noon. The index could not move back up and sustain above this level.

After testing the support at 32,100 multiple times, Bank Nifty closed the day at 32,169, down 282 points or 0.87%.

Nifty FMCG(up 2.13%) was the only sector to close in the green. Nifty Metal(down 3.76%), Nifty Realty(down 3.19%) and Nifty Auto(down 2%) performed the worst. Nifty IT, Media and Pharma also closed more than 1% down each.

Major Asian markets closed in the green. All European markets are trading in the green with small gains.

News Picks

Asian Paints reported an 81.13% jump in its consolidated net profit to Rs 869.89 crore for Q4. The stock consolidated after the morning rally and closed up by 8.5% as Nifty’s top gainer.

Shares of UPL closed 7.4% up after Q4 net profits jumped 74% YoY to Rs.1063 crores.

Larsen & Toubro won another large order worth Rs 2,500-5,000 crores. The stock moved 3% up from the day low and closed 2% up among Nifty’s top gainers.

FMCG stocks rallied in the day right from the market opened. Yesterday, data from Nielsen, global research agency said that the industry saw a 9% growth in the January-March quarter. This was higher than the December quarter where growth was 7%. 

5 out of the top 10 gainers in Nifty 50 were FMCG stocks – lead by ITC (up 4.4%).

Nifty Metal(down 3.76%) saw a sharp sell-off once again with all stocks in it closing in the red. The index was nearly 6% down by noon, and moved up.

Jindal Steel(down 8.61%) was down nearly 14% at one point but came back up. NMDC closed 8.5% down. 3 out of the top 5 losers in Nifty 50 were from Nifty Metal – Coal India(down 4.36%) & Hindalco and Tata Steel both down 4%.

Tata Motors fell 4.22% in the day, followed by all other Nifty Auto participants in the red. Results of the automaker will be published on May 18, and fundraising will be considered as well.

Cadila HealthCare said that they are on track for a May-end submission of its Covid-19 vaccine and that they should be able to supply 5 crore doses by year-end. It closed as Nifty Pharma’s worst participant(down 4.61%).

Lupin reported an 18% increase in its consolidated net profit at Rs 460 crore for Q4. The stock fell 2.7%

After formally starting vaccination with Sputnik-V, Dr Reddy’s tried to stay in the green even as other Pharma stocks fell. The company is still importing the vaccine and is months away from production. During the day, a 29% YoY fall in net profits to Rs 554 crore was announced and the stock closed 2% down.

Tractor manufacturer Escorts reported a 5% fall in consolidated net profit posted as Rs 271 crores compared to last quarter. The stock closed 1% down, as results were in line with estimates.

Welspun India closed 11% up after approving the buyback of equity shares at the price of Rs.120/share. The current market price is at Rs.101.35.

Apollo Tyres fell 6% as the company announced a 35% fall in net profits for Q3 compared to last quarter.

IEX closed down by 6% after Q4 results along with Happiest Minds(down 8.2%) as profit booking kicked in.

Markets Ahead

A generally bearish day in the market, with Nifty being kept flat by just a few stocks. Even with Asian Paints, ITC and Reliance pushing up Nifty by 60 points, it closed in the red. Nifty has closed 260 points down from Monday’s opening level, while Bank Nifty is down nearly 1,000 points.

A strong pullback from Reliance‘s Rs 1,900 support helped Nifty today. The stock closed more than 1.25% up but still can’t be called bullish.

Almost all banking stocks closed in the red, and Bank Nifty is near its key support at 32,000. Last week we had talked about how this support looks strong, but that might not be the case next week. Most banking stocks are near support levels.

The fear of rising Covid-19 cases are back even as a top government advisor said more than 200 crore doses of vaccines will likely be available in India between August to December this year.

PM Modi in an online video address has said that the Indian govt is making efforts to vaccinate citizens quickly and all roadblocks are being removed.

As markets close for the weekend, Nifty has still closed above 14,650 support. Bank Nifty’s move in the next week will decide Nifty’s fate. But then again, 14,000 continues to be a very strong support which has very low chances of being broken in May.

So it is indeed a rangebound market, with buying when market falls to 14,200-14,500 ranges and selling when it reaches back to 14,900-15,000 ranges. So go with the flow, and invest wisely.

Take some time off over the weekend, but also remember to check out some charts and study them. Let us hope it will be a refreshing weekend for us and the market in the middle of the month. Let me know in the comments section of marketfeed App how the week went by for you!

Catch you all on The Stock Market Show tonight!

Categories
Daily Market Feed Post Market Analysis

Markets See Sell-Off. Metal Rally Comes to an End? – Share Market Highlights Today

Today’s Market Summarised

A day of heavy sell-off across all sectors in the market afternoon.

Nifty opened the day at 14,824 with a small gap-down and started falling. Once 14,800 was broken in the first 5 minutes, the fall continued. In the first two hours of trade, the index had fallen 130 points. With an unsuccessful try for a pullback, more sell-off was seen after 1 pm.

After taking support at 14,650, Nifty closed the day at 14,696, down by 154 points or 1.04%. 

Bank Nifty opened at 32,720 and mostly moved in a similar way to Nifty. After the initial fall, HDFC Bank and SBI tried to pull up the index. Even though HDFC Bank fell later, SBI continued to move up. But in the last hour, all stocks fell once again. Another day of PSU Banks vs Private Banks helped the index consolidate.

Bank Nifty closed the day at 32,452, down 420 points or 1.28%.

All sectoral indices closed mixed. Just like yesterday, Nifty PSU Bank(up 3.24%) shined in the day. Nifty Metal(down 2.97%) saw heavy profit booking. In the other indices, only Nifty Bank(down 1.28%) and Fin Nifty(down 1.23%) moved by more than 1% to either side.

Most Asian markets closed in the red, which led to the gap-down opening today. European markets are trading flat at the time of Indian market close.

News Picks

Cadila HC jumped 2.7% up after it sold its animal healthcare business to a list of investors including the Canada Pension Plan Investment Board and Rakesh Jhunjhunwala’s RARE Enterprises. The deal for Zydus Animal Health was completed for Rs 2,921 crores. 

Wholesale vehicle sales data from the Society of Indian Automobile Manufacturers (SIAM) is out. Retail sales of commercial vehicles is down 23.7% at 51,436 units in April compared to March. Retail sales of passenger vehicles are down 25.3% Month on Month to 2.08 lakh units. 

Sales of tractors grew 16% while all other vehicle categories declined considerably. But all this was as expected, due to the second wave of Covid-19 and lockdowns. Hence the auto stocks did not react much.

NMDC has hiked iron ore prices by Rs 700/tonne and prices of fines by Rs 1,500/tonne. The stock hit a day high 7% up, but later fell along with Nifty and closed just 3% up.

Cabinet announces boost for electric vehicles. The PLI scheme for battery storage goods is aimed at increasing Electric Vehicles production. Amara Raja Batteries(up 2%), Tata Chemicals(up 3.6%) and Exide(down 0.13%) moved well from their day-lows.

Mahindra & Mahindra said its sales volume for the quarter ended June 2021 is estimated to be lower by 15-20 per cent as compared to the year-ago period. The stock closed 2% down.

Meanwhile, Tata Motors rallied 6% up from yesterday’s close but fell near market close. The stock ended 3.3% up at Rs 326.

Voltas has reported a Q4 net profit of Rs 238 crores, up 49% YoY and 79% compared to last quarter. The stock is down by 3.8% after profit booking kicked in. Was up nearly 3.8% yesterday.

After the Government of India asked Bharat Biotech and Panacea to come together and ramp up production of Covaxin, Panacea Biotech hit its 5% Upper Circuit again. The stock is up more than 40% in the last 30 days.

Asian Paints reported Q4 net profit posted as Rs.850 crores, up 84% YoY but down 31% compared to last quarter. The stock closed flat after a volatile day of trade.

Vodafone Idea added 6.5 lakh subscribers in February, thereby adding customers for the first time in 15 months. The stock closed 8.6% up.

Godrej Consumer Products reported a 59.13% YoY increase in net profit to Rs 365.84 crore for Q4. But interestingly, the appointment of a new MD and CEO, Sudhir Sitapati from Hindustan Unilever, boosted the stock to close 21% up.

Godrej Industries has a 23.6% stake in GodrejCP. GodrejInd went up 20% but fell from there to close 9% up for the day.

Nifty PSU Bank is up 3.2%. PNB, Union Bank, Uco Bank, Central Bank are up more than 5%. All stocks in the index closed in the green.

Monsoon is approaching and fertilizer stocks like NFL(+9%), FACT(+4.5%), ChambalFert(+10%), RCF(+3.3%) gained heavily.

Just after-market hours, UPL has reported Q4 consolidated net profit posted at Rs.1063 crores, up 72% YoY and 34% compared to the last quarter along estimates.

After the dream rally of multiple days, it was a day of profit booking in Nifty Metal.

Hindalco(-3.3%), SAIL(-5.8%) NationAlum(-5.7%) Jindal Steel(-4%) were the most shattered ones among Nifty Metal. Tata Steel, the top loser of Nifty 50 is down by 4.4% followed by JSW Steel(down 3.5%).

After market closed, Jindal Steel has reported Q4 consolidated net profit at Rs 1968 crores , up 975% YoY and down 12% compared to last quarter. 

Shares of Venky’s gained 17.6% after posting good results on Monday. The stock is up 31% in the last 5 trading days.

Packaged Food and Meat Industry stocks like Avanti Feed(5%), Apex Frozen(6%), Waterbase(3%) and KRBL(6%) had a good day in Indian Market.

Markets Ahead

All districts in India with 10%+ Covid-19 positivity rates need to remain locked down for 6-8 weeks, ICMR Chief has advised. That will be more than 2 more months of lockdowns in all major districts, if imposed.

A negative close in the markets ahead of tomorrow’s holiday. But a volatile expiry after last week’s calm Thursday. We had discussed yesterday that the market may fall further if global indices continue to be red. Expected 14,800 to be a good support in the day, but once this was broken, it was a good indication of bearishness.

Profit booking continued to rock metal stocks, with top stocks closing significantly down in the last 2 days. Those still bullish for the long-term can plan entries when these stocks start moving back up.

The volatile day was expected as it was a weekly expiry. 14,500 continues to look like a good support for the next week but a fall below this will lead straight to 14,250 -’300 levels. Reliance continues to be weak, down 1% today. The only hope for a reversal in the market will be highly bullish results from SBI, who closed in the green in between a bearish market.

Even if this happens, 15,000 does look like a strong resistance in the very short term, with sell-offs happening at that range and buying happening at 14,200 ranges.  

Eid is to be celebrated on the 14th in India, so advanced wishes to all. Tomorrow being a market holiday, take some time of to spend on studying some good charts!

Hoping you had a great day in the market today. And as always, stay safe and stay home if you can. Keep studying charts and improve your skills.

Catch you all on The Stock Market Show tonight!

Categories
Daily Market Feed Post Market Analysis

Energy Stocks Lead Gains as Nifty Closes in The Red – Share Market Highlights Today

Today’s Market Summarised

Nifty ends in red after 4 consecutive days of closing in the green.

Nifty opened the day at 14,797 with a 150 points gap-down and started to move up. But right in the morning, Nifty traded in a 25 point range for more than an hour. After breaking out, 14,900 was tested and the index fell from there sharply.

Nifty closed the day at 14,850, down by 91 points or 0.61%. Even with the fall, a green candle was formed in the daily charts.

Bank Nifty opened at 33,692 with a 450 point gap-down. It tried to move up but mostly consolidated. But just after 11 am, a move from both private and public banks sent Bank Nifty up. This positiveness was not sustained, and all major banks including HDFC Bank fell sharply. Bank Nifty closed the day at 32,872, down 270 points or 0.82%.

All sectoral indices closed mixed. Only Nifty PSU Bank(up 1.12%)  closed more than 1% in the green among major indices. Also, only Nifty Financial Services(down 1.29%) closed more than 1% down. Nifty Energy gained nearly 1.7%.

Major Asian markets closed in the red, with Japan’s index closing more than 3% down. European markets are all in the red, down 2% each.

News Picks

Metals saw profit booking after many days of rally. SAIL(down 4%), JSW Steel(down 3.22%). Hindalco(3%) and JindalSteel (down 2.86%) led the fall. This could be attributed to China’s exchanges trying to cool down metals prices.

Interestingly, Tata Steel closed in the green, up by more than 1%. From the gap-down opening, the stock closed more than 4% up.

JSW Steel’s April crude steel production down 5% from last month at 13.7 lakh tonnes due to medical oxygen production. The stock closed more than 3% down.

More and more states are announcing lockdowns. Telangana and Nagaland join other states with strict lockdowns.

JSW Hydro Energy raised Rs 5,200 crores from International Bond markets. Parent company JSW Energy is up 1% in the day, and 30% up in the last 30 days.

All top 6 gainers in Nifty 50 are from the Energy sector.

Oil refiners and marketing companies gained in the day after prices of petrol and diesel were raised for the sixth time in recent weeks. 

IOC(up 4.6%), BPCL(up 1.88%), MRPL(up 7.5%) and Hindustan Petro(up 3.9%) gained sharply.

Meanwhile, Coal India(up 5.9%) and NTPC(up 4.65%) gained once again to become Nifty top-gainers. As we discussed yesterday, dependency on imported coal is being reduced and e-auctions of coal is going good. NLC India closed nearly 20% up in the day.

UPL announces collaboration with Japanese company Meiji to develop and commercialize insecticide for rice(Flupyrimin) in Southeast Asia. The stock closed 1.45% up.

Moody’s changed the Airlines Industry outlook to positive. SpiceJet closed up 9%. Indigo closed flat. Soon, Wadia-group owned GoAir is coming out with its IPO.

IndiaBulls Housing sells mutual funds business to Groww for Rs 175 crores.

Cadila Healthcare has started dispatch of Virafin, to be used for Covid-19 treatment. Shares gained more than 1%.

UP Govt has floated tender to procure 40 million Sputnik vaccine in next six months. Dr Reddy’s closed flat in the red.

Shares of BHEL once again gained nearly 12% as PSU shares continue to fly high. CONCOR(up 5.6%), GAIL(up 4.7%), BEML(up 5.4%) are some notable other names.

Shares of Alkyl Amines closed 10% in Upper Circuit after the stock split.

Markets Ahead

Nifty has once again failed to cross the 15,000 resistance. It is acting like an invisible barrier due to the fears of Covid-19 second wave shaking up the country. Banks are looking weak too, with Kotak Bank down nearly 3% in the day.

Metal prices are trying to be controlled in China by exchanges, as traders drive-up price. This has lead to a fall in metal stocks. But I do believe it is only temporary and a good opportunity to look into those stocks which did give good moves earlier. But do enter with strict stop losses.

With tomorrow being the weekly expiry, we can expect some good volatility. But with the current data, we can see Nifty is most likely to close between 14,800 and 15,000 tomorrow.

One interesting thing is, global markets are all down 2-3% but Nifty is only down 0.6% in the day. If they continue to fall tomorrow, we may see a bigger reaction from our markets.

Equity mutual funds see inflows for 2nd straight month at Rs 1,783 crore in April. This is still very much lower than the inflow of Rs 7,376 crore in March. DIIs have been buying near the 14,000 supports as you have seen.

Hoping you had a great day in the market today. And as always, stay safe and stay home if you can. Keep studying charts and improve your skills.

Catch you all on The Stock Market Show tonight!

Categories
Daily Market Feed Post Market Analysis

Nifty Consolidates as Pharma and Metals Shoot Up – Share Market Highlights Today

Today’s Market Summarised

A boring day for Nifty and Bank Nifty with a rangebound movement in the whole day but Pharma and Metals again performing in the day.

Nifty opened the day at 14,933 with a 100-point gap-up. Banks and IT kept the index volatile but kept cancelling each other out. After trading in a 75-point range for the whole day, Nifty closed at 14,942, up 120 points or 0.80%.

Bank Nifty opened at 33,222 and tried falling. 33,000 was taken as support and the SBIN tried to take the index up. 33,300 was taken a resistance and this was the range for the day. Bank Nifty closed the day at 33,142, up 238 points or 0.72%.

All sectoral indices closed in the green. Nifty Metal(up 3.14%), Nifty Pharma(up 2.80%) and Nifty Media(up 2.50%) performed the best.

Asian markets closed mixed in the day. European markets are all trading flat.

News Picks

Cipla, Natco Pharma, Sun Pharma & Lupin entered into an agreement with Eli Lilly for Baricitinib. Nifty Pharma closed in the green with all stocks in the index closing in the green. 

Torrent Pharma(up 5.8%) hit a new 52-week high with good buying.

Zydus Wellness net profits went up 92% YoY to Rs 133 crores for Q4. Profit booking kicked in and the stock fell 5% from the day high and closed flat.

NMDC may hike iron ore prices by up to Rs 500/tonne for May, on the back of a global increase in prices. Stock closed up 8%.

Coal India went up 7.5% up in the day with high volumes. The Public Sector Unit said it will continue with the supply of coal to the power plants under import substitution this year.

Keki Mistry, CEO of HDFC, said that demand for loans have been strong and increasing every month. The stock closed 1.3% up in the day.

IDFC First Bank reported sharply higher profit at Rs 127.81 crore in Q4FY21 against Rs 71.54 crore in Q4Y20. Profit booking kicked in and the stock closed 2% down. 

Tata Power board to consider issuing NCDs, bonds and other debt securities on a private placement basis on May 12. The stock closed up by 7%.

The Nifty 50 top gainers list is mostly filled with Metal and Pharma stocks. Coal India(7%), Hindalco(6%) , TataSteel(2.8%), Dr Reddy (2.9%), Sunpharma(2.7%), Divislab(2.7%) featured in the list.

National Aluminum went up 10% in the day, along with Hind Copper(up 10%).

PSUs including BHEL(up 13.5%), BEML(up 7%) and BEL(up 5%) are on a bull-run.

Petrol price in Maharashtra hit Rs 100 mark. Rising fuel rates took IOC 4.7% up, BPCL(up 2.3%) and Hind Petro(1.7% up).

Angel Broking continued its amazing rally and hit Upper Hit again. It has now moved 60% in five trading days.

UPL gained more than 7% after broking firm CLSA maintained a bullish outlook ahead of Q4 results announcement on Wednesday.

HeroMotoCorp extended the shutdown of their units and is down by 0.8%. Only 3 Nifty 50 stocks fell more than 1%. 

Cement stocks like ShreeCem(1.9%), UltraTech Cement (1.2%) and Grasim(0.35%) ended in loss.

Markets Ahead

The fears on Friday of a national lockdown was gone over the weekend. Hence even SGX Nifty was above 15,000 level in the morning. But yes, this level was not even touched by Nifty today. 

Ended as a day of net consolidation with most large-cap stocks moving sideways. 15,000 looks like a possible level for this week seeing HDFC Bank’s bullish close today. But I will be looking for 15,050 as an important level than 15,000 as this was April’s highest level.

Reliance still looks bearish, more than 5% down from its 30-day high. Expecting a sideways move from the stock.

Hence all eyes lie on Private Banks and HDFC, with them having the highest weightage in Nifty. 33,300-33,500 being broken in Bank Nifty might bring some positiveness to the index.

Do keep in mind that it is a 4-day market week, with Thursday being closed for Ramzan. Hence the weekly expiry will be on Wednesday.

Hoping you had a great day in the market today. And as always, stay safe and stay home if you can. Keep studying charts and improve your skills.

Catch you all on The Stock Market Show tonight!