Market Remains Strong. All Eyes on India CPI Data - Post Market Analysis


NIFTY opened the day at 17,890 with a gap-up of 57 points. After consolidating for 15 mins, it broke opening (or the previous day’s) high and moved up. The index then consolidated within a 30 points range for most of the day with many volatile movements. NIFTY closed the day at 17,936, up by 103 points or 0.58%. 

BANK NIFTY started the day at 40,540 with a gap-up of 124 points. After the opening volatility, the index fell into a consolidation mode with a 100 points range. It created four day highs today and all the attempts to break them became false breakouts. Bank Nifty ended the day at 40,574 up by 158 points or 0.39%.

All the indices closed in green. Nifty IT (+1.4%) performed very well again. Nifty PSU Bank (+1.2%), Nifty Realty (+2.2%) and Nifty Media (+1.9%) also moved up.

Major Asian markets closed well in the green. European markets are trading more than 1% up. The Chinese markets are closed today on account of the mid-autumn moon day.

Today’s Moves

Adani Ports (+3.4%) broke the recent resistance and hit an all-time high today. We need a constant buying volume to confirm this breakout.

A higher selling volume profit booking appeared in Coal India (-2.5%) and closed as Nifty 50 Top Loser.

All the Nifty IT stocks closed in the green, led by Infy (+1.6%), MindTree (+2.5%), LTI (+2.9%), TechM (+2%) and Wipro (+1.1%). Many brokerage firms are supporting Infy’s positive forecast for the coming months.

Axis Bank (+2%) has confirmed a trendline breakout after gaining today.

Chemical stocks- Navin Fluorine (+6.6%), Fluoro Chem (+5.8%), Tata Chem (+4.2%), Deepal Nitrite (+6.5%), Vinyl Chemicals (+4.8%), and Aarti Industries (+3.3%) closed in the green.

Cement stocks have been in our reports for many days and it's worth mentioning. Ambuja (+4.6%), ACC (+5.7%), Ultra Cements (+1.2%), India Cements (+2.8%), Ramco Cements ( +2.8%) moved up  while Shree Cements (-1.5%) ended in the red.

Tyre stocks- Apollo Tyres (+3.8%), MRF (+1.9%), and JK Tyre (+3.8%) gained today.

AstraZeneca (+7%) moved up on plans to more than double new cancer drugs by 2030.

Defence stocks- Paras Defence (+4%) & HAL (+7.4%),and BDL (+3.4%) also moved up.

Multiplexes- Inox Leisure (+4.1%) and PVR (+3.5%) gained as the movie Brahmastra crossed the Rs 200-crore mark earnings in the first weekend, even with negative reviews. 

Nazara Tech (+4.7%) moved up again after Google allowed fantasy sports apps on the Play Store for a year.

Markets Ahead

What do you think about today’s market movement? Definitely a positive one. Reasons?

  • Nifty has closed above the 17,900 level.
  • Global markets are trading in the green.
  • Nifty is trading close to 18k. This is the second try for the level in less than a month and doesn't expect to miss this time.
  • FIIs are on the buying side
  • Sector-wise buying. 
  • Bank Nifty closed above 40,000, for the third time in a row.
  • Nifty IT is on the move.
  • Nifty has just started the long-term resistance line breakout.

But still, we have some concerns. What are they?

  • Nifty must close above 18,100 on a day candle basis to confirm the bullishness.
  • We are yet to see a proper profit booking.
  • HDFC Bank witnessed huge selling in the last hour.
  • HDFC Bank is struggling to close above the 1500 level.
  • Reliance is trading near the resistance line.

UK GDP grew 0.2% in July compared to the previous month. But the growth is slower than the 0.3% expectations. In June the economy fell by 0.6%.

India’s CPI data is expected to be out today at 5:30 pm.

FIIs have been on the net buying side for many weeks. Also, we are seeing segment-wise movements every day- Cement, Tyre, Sugar, Fertilizers etc. Buying is happening in sectors which are expected to perform well in the coming quarter. Which would be the next segment that will experience institutional buying? Share your answers in the comment section of the marketfeed app.

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