Today’s Market Summarised

A highly volatile day in the market for the weekly expiry!

NIFTY opened the day flat at 17,895 and tried to move up. But before even testing 18k, sellers pulled the market sharply down. From the day high, there was a fall of 250 points in 3 hours. In the afternoon, the market recovered a bit and NIFTY closed the day at 17,764, down 134 points or 0.75%.

BANK NIFTY opened the day 38,060, but could not sustain a bullish move. Even though the index fell, it was less volatile than NIFTY perhaps since it has already fallen 9% in 17 trading days. BANK NIFTY close the day at 37,976, down 65 points or 0.17%. 

Almost all sectoral indices closed in the red, except BANK NIFTY(-0.17%) and NIFTY PSU BANK(+0.07%) who were flat. NIFTY METAL(-2.5%), NIFTY AUTO(-2.6%) and NIFTY MEDIA(+2%) saw the most selling along with NIFTY IT(-1.7%) and REALTY(-1.7%). 

Asian markets closed mixed in the day. European markets are trading flat currently.

News Picks

PM Modi said today that PSU Banks after multiple mergers now have a large capital base and good liquidity. He also added that over Rs 5 lakh crores of the bad loans have been recovered. SBI(+1.1%) closed as the top-gainer in NIFTY 50. 

PNB(+2.4%) also gained, while all other stocks in the PSU Bank index fell. HDFC Bank(+0.56%) and ICICI Bank(+0.21%) managed to stay slightly in the green.

Tata Motors(-3.8%), M&M(-3.2%), Eicher Motors(-2.6%) and Hero MotoCorp(-2.3%) closed among the top-losers of NIFTY 50 after this week’s rally in auto stocks. Maruti(-1.9%) and Ashok Leyland(-4.5%) and nearly all NIFTY AUTO participants closed in deep red.

All participants from the NIFTY IT index closed in the red. TechM(-3.1%), HCLTech(-2.8%) closed in the top-losers.

Vedanta(-8.4%) fell heavily as analysts took a negative view of the company’s plans to demerge its businesses. 

China reported that its steel production was 20% down compared to in early November. Jindal Steel(-3.1%), SAIL(-2.7%), Tata Steel(-2.7%), Hind Zinc(-2.9%) and National Aluminium(-4%) fell the most from the Metals index.

Japan’s Kubota Corp is set to increase its shareholding in Escorts(+10.5%), with an open offer at Rs 2,000/share worth more than Rs 9,100 crores. The tractor manufacturer’s stock hit Upper Circuit.

Bosch Ltd(-5.8%), Tata Power,(-5.1%) Coforge(-4.5%) and many others who rallied this week saw corrections.

Shares of PayTM crashed nearly 26% from its IPO price, after India’s largest initial public offering(IPO). The stock opened trading at Rs 1,950, down 9.3% from its IPO price of Rs 2,150. The stock closed at the lower circuit, at a low of Rs 1,560.

Meanwhile, Sapphire Foods gained 4% from IPO price on listing day

British Private Equity firm Apax Partners sold its remaining 11.5% stake in Zensar Tech(-8.6%) today. The stock crashed.

Markets Ahead

A thrilling weekly expiry in the day and just like we expected yesterday, it was the most volatile day of the week. NIFTY has now formed 5 consecutive red candles in the daily charts.

Both Foreign investors and Domestic Institutions were net sellers in the cash market yesterday.  More and more short positions are being taken in Index Futures and this has been hammering down the market.

Bank Nifty is now at a good support zone, at the all-time high from the budget week of 2021 February. With the correction, the index of banks is now down more than 9% from its high on October 27th. 

HDFC Bank and ICICI Bank, the heavyweights of the index managed to stay in the green today. We can go bullish on the index again if it closes above 38,230.

NIFTY however has closed below its 50-day moving average, indicating bearishness. Keep an eye out for further falls if support is not taken at 17,600. You can also observe if Reliance will bounce back above the Rs 2,500 mark after having closed in green today. 

Hope you had a good weekly expiry day! Tomorrow is a market holiday for Guru Nanak Jayanti and hence it’s a 3-day weekend for market participants. Take some time out to chill but also study some stocks!

Meet you all on The Stock Market Show at 7 PM on YouTube!