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Big gap up, then a fall and ended with consolidation. Is Nifty in for a reversal?

Good Evening everyone, Just as I had written in the morning report, we did see huge volatility as we are inching closer to the monthly derivative expiry in Nifty.

The market opened with a huge gap-up followed by big profit booking at higher levels thus bringing Nifty down in the first half of the day.

On the daily chart, Nifty has formed a higher high and a higher low which translates that we could see some more up move along with consolidation. It would be a "Buy at dips" strategy for now.

Sector Watch:

The Nifty today was led by pure power in the IT sector. Shares of India's top five IT services providers by market value have risen 61-130 percent in the last year. In the current year so far, Tata Consultancy Services (TCS) has risen nearly 20 percent, Infosys 28 percent, and Wipro 38 percent. Tech Mahindra has risen 30 percent and HCL Technologies 15 percent.

Zomato's share price declined over six percent today as the lock-in period for the company's anchor investors ended, leading to high share sales volume on stock exchanges. Anchor investors are big institutional investors such as mutual funds or sovereign wealth funds that buy a substantial number of shares in an IPO-bound company.

Anchor investors have a 30-day lock-in period post-allotment. This means they cannot sell their shares before 30 days from the date of allotment. Zomato shares debuted on bourses on July 23, 2021. Zomato was listed on exchanges on July 23, 2021.

Meanwhile, ICICI Securities initiated coverage on Zomato with a "buy" rating and a target price of Rs 220 per share.

Credit Suisse has maintained an outperform rating on Hindalco and has sharply raised the target price value to Rs 555 versus an earlier target of Rs 330. In fact, the brokerage expects the free cash flow yield of the company to be around 14 percent and 16 percent, respectively in FY23 and FY24.

Top Gainers:

Shares of HCL Technologies hit a 52-week high of Rs 1,167.85 apiece on the BSE today, rising over 4 percent after CLSA raised the target price on the large-cap IT stock. The international brokerage has retained a buy call on the stock and increased the target to Rs 1,320 per share from Rs 1,180 earlier. The Dalal Street veteran feels that though IT seems to be trading at a higher range, it is rightly justified given the current environment.

Top Losers:

Grasim & Adani ports were among the top losers as we could continue to see some profit booking there at higher levels. Also, Adani stocks were down during the day as SEBI has kept a hold on Adani Wilmar IPO.

That's it for now, let us catch up tomorrow on the pre-market report.

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