Nifty Closes With Strength, RBI Remains Confident - Post Market Analysis

NIFTY opened the day at 16,661 and then fell 90 pts after testing 16,700. From there, it moved up and hit a day high at 16,752. NIFTY closed the day at 16,719, up by 114 points or 0.69%. 

BANK NIFTY started the day at 36,322 and consolidated around 36,500 for more than two hours. Then it moved up more than 300 pts, but couldn’t break 36,800 major resistance. Bank Nifty ended the day at 36,738, up by 537 points or 1.49%.

Nifty Bank (+1.4%), and Nifty Finserv (+1.5%) were the only indices with more than 1% change. Nifty Pharma (-0.27%) once again closed in the red along with Nifty IT (-0.62%).

Major Asian markets closed mixed. European markets are trading slightly in the green currently.

Today’s Moves

Ultratech Cement (+5.3%) posted a better than the estimated Q1 consolidated net profit at Rs 1,580 crore and closed as Nifty 50 Top Gainer. 

The company said that the Indian cement industry is set to see strong demand in FY23 and other cement stocks - Ramco Cements (+3.4%), Sagar Cements (+3.2%), Shree Cements (+1.6%), India Cements (+3.8%), JK Cements (+2.2%), Grasim (+3.8%) and Orient Cements (+5.4%) moved up.

After positive comments from RBI Governor, Bank Nifty broke out and Axis bank (+2.1%), HDFC Bank (+2.3%), ICICI Bank (+1.7%), and Kotak Bank (+1.4%) gained. 

Coforge (+2.9%) reported a 21% YoY growth in Q1 consolidated profit to Rs 149.7 crore.

Nifty Auto is trading at a record high and related automotive stocks- Bharat Forge (+2.6%), Bosch (+2.7%), and Ramkrishna Forgings (+3%) performed well.

Tata Consumer (-1.7%) saw profit booking today and closed as the Top loser.

Reliance (+0.68%) closed above 2500 level ahead of Q1 results today.

HDFC AMC (-1.2%) reported a 8% YoY drop Q1 standalone net profit to Rs 314 crore.

GSFC (+14.7%) moved nearly 15% as Q1 profit grows up by 147%.

China Ferroalloy Industry Association confirmed a 60% production reduction from July 22.  The largest Indian Manganese producer, MOIL (+8.4%) skyrocketed.

Olectra Greentech (+4.5%) secured an order of 300 electric buses worth Rs 500 crores.

Markets Ahead

Nifty closed above the 16,700 mark, which is indicating strength in the market. It is very important to watch Bank Nifty movements around 36,800 levels.

Bank Nifty had the best week since January 2022, up by 6%. 

Promising words from RBI Governor today gave a boost to the market. The central bank is confident of bringing inflation below the target of 4%.

As we discussed, Nifty IT struggled at 28,500 resistance and fell heavily today. All the indices except Nifty pharma performed this week. 

ICICI Bank today tested a major resistance around Rs 800 level and could be watched in the coming 

European Central Bank Governing Council member Kazimir said that the September rate hike would be 25 bps or 50 bps. Also, multiple data came out today and they are as follows.

German Services July PMI came out below the estimate of 51.4 at 49.2 vs 52.4 previous.

German Manufacturing July PMI at 49.2 vs 52.0 Previous vs Estimate of 50.7.

Eurozone Manufacturing July PMI at 49.6 vs 52.1 previous vs Estimate of 51.0.

Eurozone Services July PMI at 50.6 vs 53.0 previous Estimate of 52.0

A great week it was! How was yours? Let us know in the comments section of the marketfeed app.