How are the Markets Looking ?
Despite some profit taking on larger cap names, the market continues to rally, closing at 21,418, there is nothing significant to talk about, it is important to analyse the market trends and understand the factors driving the recent movements.
The volume of trading on this day shrank dramatically compared to the previous day, which witnessed substantial FII buying of 9000 crore. This lesser enthusiasm can be attributed to a consolidation phase in the market.
Nify Heatmap
Although there is significant red on the screen, indicating downsides in several stocks, it is crucial to note that there were only minor corrections in most cases.
Several well-known stocks experienced a slight decrease on this day. ICICI Bank and Axis Bank were down 1.5%, ONGC and Coal India experienced a 1% decrease, and ITC faced a 1.4% decline due to news that BAT may pare down its stake. Additionally, Mahindra, JSW Steel, Grassim, and Ultratech Cement also witnessed losses between 0.6% and 1.4%. Infosys, Power Grid, and NTPC faced declines of 0.9%, 2.3%, and 0.6% respectively. This was a day of significantly large, broad based, corrections.
On the positive side, Bajaj Auto shone with a gain of 3%, while Reliance Industries and Hindalco saw gains of 1% and 1.64% respectively.
Sectoral Overview
Pharma stocks led the market, contributing to an overall increase of 0.9%. It is worth mentioning that defensive sectors like pharma and metals, as well as public sector enterprise stocks, showed minor gains.
Real estate took a significant hit, experiencing a 1% correction, while PSU banks faced a 0.7% decrease. FMCG stocks also had a slight decline of 0.3%, and private banks were down by 0.6%. While some sheen has been taken off for the week, the market still stands tall with a gain of 6.5% over the last one-week period.
Mid & Small Cap Performance
In terms of mid caps, the range was approximately slightly above the previous day’s high and to some extent below the previous day’s low. The mid caps closed absolutely flat as a doji candle after morning trading, indicating a need for consolidation.
Small caps performed exceptionally well gradually cementing the gains over and above the 13,600 breakout that occurred three to four days ago. The rally in small caps continues, suggesting positive market sentiment.
Bank Nifty Overview
The Nifty Bank took a day off after a few consecutive days of running. Over the last month, it has remarkably increased by almost 5000 points. Some rest is possibly needed in this sector to allow for further stability and growth.
Highlights – Bajaj Auto
Bajaj Auto reached the 6400 plus region, indicating significant growth. Looking at the chart, we can observe that Bajaj Auto had previously peaked at 3800 in early 2021 and had a consolidation period of almost two years and one quarter thereafter. In the last six to seven months, it has almost doubled in value.
Highlights – Sun Pharma
Sun Pharma also performed exceptionally well, hitting a new high of 1260 plus. In comparison to its price of rs920 in May-June, Sun Pharma has demonstrated consistent growth and is showing a positive Flag Pole formation for newer highs. The overall nifty pharma sector is also at a new high and appears to be on an upward trajectory.
Highlights – Nifty Media Index
Nifty Media is another sector demonstrating strength, reaching previous highs and aligning with the Zee movement.
Overall, the market is in a good position and currently experiencing a bull run. While there are occasional soft days of correction, such as the profit-taking witnessed recently, Friday was a humongous buy day. Looking ahead, the market looks promising for the rest of the week, indicating a potential for higher gains.
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