Teji Mandi Market Closing - A rally without substance

The market continues to work overtime to minimize the destruction caused in March. With the Nifty above 9,500, the bulls are expected to ride all the way to 10,000.

Intraday, the market sailed through important resistance marks as Sensex closed 1.89% up at 32,720.16 while Nifty closed comfortably above 9500 even though it slipped off a bit in the last hour. HDFC (up 7.05%), Hindalco (up 6.94%) and Adani Ports (up 5.39%) were the major gainers while Axis Bank (down 3.59%), Asian Paints (3.12%) and HUL (down 2.54%) were the major losers of the day.

Despite today’s gains, the recovery continues to remain structurally weak. It is unlikely to be backed by earnings. Banking and financial sectors are doing the bulk of the work to lift the market. However, the quarterly results so far clearly indicate increasing pain in the system.

Banks also seem to be making abnormally high provisions to counter the COVID19 impact in the coming quarters.

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