Metals put on solid show

Nifty50: 18,338 ▲ +176 (+0.9%)
Sensex: 61,305 ▲ +568 (+0.9%)

Surging for the sixth straight session, Nifty witnessed a record high closing above 18,300-level for the first time in history. The market breadth was positive with 34 stocks posting gains. 

All Nifty sectoral indices made gains except Auto (-0.5%). Bank Nifty (+1.8%) and Metal (+1.7%) were the top gainers.

For more updates on F&O, click here.

Here are the top stories of the day.

Energy crisis fuels metal rally

The prices of zinc have risen nearly 9% so far this week, hitting their highest level since 2007 as the global energy crisis hurts production and supply. Similarly, copper prices too rose about 7% as its inventory shrinks. The producers have been forced to cut their production as a shortage of natural gas is fueling the energy crisis across the world including in China and Europe. 

Experts believe that prices of these metals may remain elevated if the production cuts continue to be impacted for a prolonged period. Against this backdrop, shares of domestic metal players Hindustan Zinc (+4.2%), Hindustan Copper (+5.0%) and Vedanta (+3.6%) witnessed a strong buying interest.  

Mindtree surges on strong Q2 earnings

Shares of the IT company surged 13% intraday as it reported a 16.2% quarter-on-quarter rise in the September quarter net profit to ₹398.9 crore. The company's revenue also rose 12.9% to ₹2,568.2 crore.

During the quarter, the company added five new clients in the $10 million+ category. Its management said that the demand environment is strong and the company is well positioned to deliver profitable growth in FY22. Meanwhile, shares of Mindtree were up by 7.6% today.

Westlife Development soars on expansion plans

The owner and operator of McDonald's restaurants in the west and south of India said it will invest around ₹800-₹1,000 crore across its business and add another 150-200 stores in the upcoming 3-4 years.

The company plans to expand its network and revamp existing stores with enhanced cutting-edge technology and data analytical tools to provide a personalised, feature-rich experience to consumers.  Shares of Westlife rose nearly 11% intraday but witnessed profit booking and closed 2.5% higher.

Closing bell

The markets rose for each day of the week, and it seemed as if the bulls wanted to buy more but couldn’t get enough in this holiday truncated week. For today, cues from the major international indices too were positive. Meanwhile, wholesale inflation eased to 10.6% in September on lower food prices. Cooling inflation is generally considered favorable for the markets as it reduces pressure on the central bank to raise interest rates. Next week, there are no major data releases and stock specific volatility would be visible as the results season progresses.

Good to know

What is an Open Interest?

Open Interest (OI) is the number of futures (or Options) contracts currently outstanding (open) in the market. For instance, if a trader goes long and buys two contracts, the open interest will be two. Similarly, another trades goes short and sells one contract, now the total open interest will be three. Until their counterpart exits the position, it will be considered as ‘open’.  Traders use OI data, along with price trends, to understand the strength of the current trend. Click here to learn more about the option chain and open interest analysis and how to identify a resistance or a support followed by a candlestick pattern.  

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Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.