Where is the market headed?
It was a good day overall. Things seem to be improving across the globe, with U.S.-China relations showing some positive signs after the weekend announcements. The Indo-U.S. trade talks also appear to be progressing well. Gold, on the other hand, is taking a bit of a breather and might go down further as there seems to be a technical breakdown. We’ll discuss that when we look at the charts.
Market Overview
Many companies are reporting better-than-expected results, and there is a sense of buoyancy in the large-cap space. The Nifty is now very close to its all-time high. With FII selling slowing down and positive cues from multiple sectors, the market continues to stay strong.
The overall market setup looks quite decent. After two strong down days, we saw an up day today. The market closed at a new short-term high, up by 0.66%, and came very close to the 26,000 mark.
Nifty Next 50
The Nifty Junior also closed at a four- or five-day high, showing that after several sessions of weak closes, the trend is improving. It ended at 69,612, up by 0.37%.
Nifty Mid and Small Cap
Mid-caps also performed well, closing 0.8% higher — their best close since July. Small-caps were up by 0.65%, though they still lag a bit compared to large caps. It seems that the strength at the top end of the market is pulling the smaller stocks upward.
Bank Nifty
Banks also had a strong session, up 0.72%, closing at a new all-time high of 58,114.
GOLD
Gold, however, showed weakness, down 1.32%. It may come down further toward 11,635 or even lower, which would translate to around $3,600–$3,800 on the dollar chart. That zone could act as a strong base for the next move up.
SILVER
Silver fell 0.81%, entering a time correction phase after a strong run-up. It might move sideways for some time before resuming its next leg.
Advance Decline Ratio
The market breadth was decent today, with 297 advances against 202 declines. Mid-morning saw a dip, but the market stabilized afterward.
Heat Maps
Major gainers in the Nifty included heavyweights like Bharti Airtel, Reliance, State Bank of India, SBI Life, HDFC Bank, TCS, ITC, Tata Motors, Grasim, and Hindalco. Kotak Bank, however, was down after its results, and Infosys also fell 1.3%.
In the Nifty Next 50 space, Adani Power was down 2.8%, along with minor losses in Naukri, Britannia, HAL, and Divis Labs. PSU banks were the standout performers, with gains in Canara Bank, Bank of Baroda, and PNB. Oil and Gas stocks like IOC and BPCL also did well, as did steel and commodity stocks like Jindal Steel and Vedanta.
Mover Of The Day
Among individual movers, Hatsun Agro rose 19.5% after strong quarterly results. The stock had been struggling for a while, so this move caught the market by surprise.
Sectoral Overview
Sector-wise, it was a broadly positive day. PSU banks were the biggest gainers, up 2.2%, followed by oil and gas at 1.5%, and real estate at 1.4%. Defense was the only sector that showed some weakness, down 0.67%.
Sector of the Day
Nifty PSU Banks Index
With PSU banks at new highs and strong gains in major names like Bank of India, Canara Bank, Bank of Baroda, PNB, and SBI, the overall momentum looks healthy.
U.S. Market
Globally, the U.S. markets also did very well in the previous session — the Dow Jones was up 1%, NASDAQ gained 1.2%, and the Russell 2000 rose 1.25%.
Big names like IBM, AMD, Goldman Sachs, General Motors, and Broadcom led the rally. IBM, in particular, jumped from around $260 to $310 in just two sessions.
Some of these names have also been part of the Weekend Investing U.S. portfolio in the past, and it’s always good to maintain diversification beyond the home market.
Tweets Of the Day
A LinkedIn post by Advocate Sunny Arora caught attention, talking about issues in digital gold. While it’s unclear how accurate the post is, it highlights some real concerns. Digital gold is still an unregulated space, and different platforms are offering varying rates.
Many people doing SIPs in digital gold are finding that when they try to sell, the prices and profits differ across platforms. This lack of standardization makes it a risky area. I’m not commenting on the accuracy of the claims, but this issue deserves discussion. I’ll be doing a detailed video on this topic later today.
Another key point is the sudden movement in real estate stocks. After months of consolidation since June, many real estate counters are now breaking out. The sector seems to be benefiting from expectations of lower interest rates. Home loans are currently around 7.x%, and even a small cut of 0.25–0.5% could boost demand significantly. Lower rates would make many housing projects more attractive, possibly triggering fresh buying interest.
