Where is the market headed?
Write
Tonight is an important evening as we will come to know what the US Federal Reserve decides to do and what it signals for the future. At the same time, there is news of collaboration between the US and India teams, with President Trump congratulating Prime Minister Modi on his birthday. This positive sentiment seems to have given some relief to the markets, which are slowly inching back toward their previous highs after a period of worry.
Market Overview
Over the past twelve sessions, the market has moved from 24,400 to 25,330, showing strength despite distractions such as tariff news. The move clearly indicates that the market is in no mood to stop, even when faced with roadblocks. Nifty rose 0.36% for the day
Nifty Next 50
Nifty Junior also showed a steady upward trend of 0.21% in the last eight to nine sessions, moving close to its resistance near 69,000.
Nifty Mid and Small Cap
Midcaps gained 1.18%, Small Caps were up 0.5%.
Bank Nifty
Bank Nifty moved up 0.63%. Though still lagging behind, Bank Nifty has gained nearly 700 points over the last two days.
GOLD
Gold, however, seems to be taking a pause, waiting for the Fed’s decision to determine its next big move.
The expectation is for a quarter percent rate cut. If the Fed announces half a percent cut, gold may not fall and could even rise if further cuts are hinted at. On the other hand, a quarter percent cut might push prices down somewhat.
Advance Decline Ratio
The market breadth today was moderate with advances at 285 against 216 declines.
Heat Maps
SBI shined with a 3% gain in a single day. Other gainers included Bharat Electronics, Tata Consumers, Maruti, and Kotak Bank.
In the Nifty Next 50, PSU banks like Bank of Baroda, Canara Bank, and PNB showed strong momentum along with companies like BPCL, HAL, and IOC.
Mover Of The Day
Tata Consumers was the top mover of the day, up 4.05%, thanks to its focus on premiumization in the tea business.
Sectoral Overview
Sectorally, PSU banks were the clear leaders. They gained 2.6% today, 9.59% in the last month, and nearly 4% in the past year. This shows that PSU banks may have finally bottomed out and are now coming back strongly. Defense stocks also made a strong comeback with gains of almost 2%. Capital markets were up 1.12%, brushing aside expiry worries. Metals, however, saw some pressure and slipped by 0.5%.
Sector of the Day
Nifty PSU Bank Index
The PSU banking index is close to conquering previous highs, and the charts even show an inverted head and shoulders pattern, indicating further potential strength.
Defense stocks too have surprised on the upside after being beaten down recently.
Tweets Of the Day
