Global Cues Help NIFTY Move Up. M&M Continues Breakout- Post Market Report

A calm end to the week. Nifty Auto stocks performs again.

NIFTY opened the day at 15,657 with a gap-up of 100pts. The index had a less volatile day, moving mostly in a 100 pts region. 15,630 - yesterday’s resistance acted as a good support today. Nifty closed at 15,699, up by 142 points or 0.92%.

BANK NIFTY started the day at 33,434 and fell into a consolidation mode.The index moved in a 220 pts region, using 33,450 as a support. Bank Nifty closed the day at 33,627, up by 492 points or 1.4%.

All sectoral indices except Nifty IT (-0.9%) closed in the green today. Nifty Bank (+1.4%), Nifty Auto (+1.9%), Nfty Media (+2.5%), Nifty Metal (+1.6%) and Nifty PSU Bank (+1.9%) closed with good gains.

Major Asian markets closed in the green today. European markets are all trading 1-2% in the green.

Today’s Moves

Once again Nifty Auto stocks stole the show. M&M(+4.3%), Hero MotoCorp (+3.2%), and Eicher Motors (+2%) featured in the Nifty 50 Top Gainers list.

Hero MotoCorp has increased the prices of its scooters and motorcycles by up to Rs 3,000. 

All the stocks from Nifty Bank and Nifty PSU Bank closed in the green. Bandhan bank (+2.9%), Federal Bank (+2.7%), ICICI Bank (+2%), IDFC First Bank (+4.2%), IndusInd Bank (+2.7%) moved the most from Bank Nifty.

S&P has affirmed a stable outlook for ICICI Bank (+2%). 

Only eight stocks from Nifty 50 closed in the red and five of them are from IT sector. TechM (-1%) and INFY (-0.78%) fell the most.

Mindtree (-2.8%), LTI (-2.4%), Mphasis (-2.1%), LTTS (-2.1%) also moved down. 

Dwarikesh Sugar (+8.9%) shot up after increasing the distillery capacity at Dwarikesh Dham unit.

Nazara Technologies closed above the 600 level after the bonus issue today. The stock was down 70% from its 52-week high before the bonus issue.

Route Mobile (+5.6%) once again moved up after the buyback plan.

Canara Bank (+2.2%) has approved raising up to Rs 9,000 crore via debt instruments in this fiscal year.

Thomas Cook (+8.5%) saw the highest volume in June as the promoter group bought 2.81 crore shares via the open market.

Markets Ahead

15,700-750 region is the next immediate resistance zone for Nifty. As we discussed yesterday, the weekly setup is indicating more upside movement if this zone is broken. On the downside, we can watch 15,630 as immediate support.

Many global IT companies are reporting good quarterly numbers. Will there be a strong pre-result rally in Nifty IT in the coming weeks?

Nifty Auto made the biggest weekly gain of more than 6% since February 2021. It will continue to be under the radar as monthly sales numbers are expected next week.

Nifty Metal ended as the worst performer of the week, down 3%. 

Michael Patra, Deputy Governor of RBI said today that the monetary policy action is in the direction and inflation will fall into limits during next Jan-march period. This gave some confidence to the market.

Global cues are currently supportive. Where do you see the Nifty next week? Let us know in the comments section of the marketfeed app!

See you at The Stock Market Show at 7 PM!