ZoooM!!! Nifty Flies To Multi-Week Highs, Bajaj Twins Up 10% - Post Market Analysis


NIFTY opened the day at 16,774 with a gap-up of 133 points. It took support at the previous week’s high and moved 200 points to the day high. NIFTY closed the day at 16,929, up by 287 points or 1.73%. 

BANK NIFTY started the day at 37,102, up by 318 points. It also took support from the previous week's high and found resistance exactly at the long-term resistance line. (Try connecting day highs of Feb 03 and April 04). Bank Nifty ended the day at 37,378, up by 594 points or 1.6%.

All the indices closed once again in the green today. The rally was led by Nifty Bank (+1.6%), Nifty Finserv (+2.3%), Nifty IT (+2.8%), Nifty Media (+1.3%), Nifty Metal (+1.7%) and Nifty Realty (+2%).

Major Asian markets closed flat. European markets are also trading flat currently.

Today’s Moves

Bajaj Finance (+10.6%) closed as Nifty 50 Top Gainer, post result rally phenomenon.

Bajaj Finserv (+10%) also shot up after announcing a 57% growth in Q1 consolidated profit at Rs 1,309.4 crore vs Rs 833 crore (YoY). They approved a bonus issue in the ratio of 1:1.and also a stock split in a 1:5 ratio.

As we discussed yesterday, Kotak Bank (+4.2%) is showing signs of a good recovery. ICICI Bank (+1.7%), IDFC First Bank (+2.3%), and IndusInd Bank (+3.8%) also gained.

Tata Steel closed above Rs 100 level after the stock split. The record date for the share split in the 1:10 ratio is tomorrow.

SBI Life (+3.6%) is also featured in the Top gainer list ahead of results today.

Influenced by the rally in Bajaj twins, many NBFCs including IBul Housing (+11.6%) Muthoot Fin (+4.2%), LIC Housing Finance (+2.%), Manappuram (+3.4%), and Aavas Finance (+3.3%) continued their rally.

M&M Fin (-0.8%) reported a less than estimated Q1 consolidated net profit at Rs 240 crore against a Loss of Rs 1544 crore last year.

SBI Cards (+4.5%) reported an 8% growth in Q1 net profits at Rs 626.9 crore compared to one year ago.

Q2 profits of Nestle India (+3%) fell 4.3% to Rs 515.3 in the Calendar Year 2022 compared to a year ago period.

Jubilant Food (+1.1%) posted a 63.8% jump in Q1 profit to Rs 113 crore from Rs 69 crore last year.

DB Corp (+6%) shot up after posting a turnaround profit of Rs 31 crore against a loss of Rs 22.2 last year.

Q1 profits of Shree Cement (-2.8%) halved to Rs 315 crore from Rs 662 crores last year.

SpiceJet (-3.3%) closed down as DGCA ordered it to operate only half of its flights for 8 weeks due to safety concerns. Indigo (+4%) used the opportunity to move up.

Biocon (+5.1%) fell after posting Q1 results yesterday.

Dixon (-3.2%) moved down on a weaker outlook.

Markets Ahead

The monthly expiry wasn’t a thrilling one, but we all felt that nitro power. Nifty closed with the strongest monthly expiry day candle of 2022. Also, we did not see any major selling towards the end, resulting in a bullish body candle.

Nifty has closed above 16,900- the highest since May 04, but the real test should be around 17k and 17,100 resistance.

We all have been tracking the long-term resistance line in Bank Nifty and it was tested today. It had a controlled uptrend move today and 37,400-37,500 zones can be watched. 

Nifty IT closed 2.8% up. Yesterday US technology index Nasdaq jumped more than 4%, its biggest daily percentage gain since April 2020.

Fed interest rate decision came out at a 75 basis points (bps) hike, as expected and U.S markets closed in the solid green yesterday. US GDP data will be out today and let's watch how they close.

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