Today’s Market Summarised

Markets see a small correction after the morning rally, then recovered towards the end of the day.

Nifty opened with a big gap-up at 17,710 and continued to move up to never before levels. After marking a fresh high near 17,800, the index saw a sharp fall of nearly 250 points till afternoon. Towards the end, Nifty slightly recovered and closed the day at 17,585, down just 44 points or 0.25%.

Bank Nifty opened the day with a small gap-up at 37,860 and crossed the level of 38,000 by around 10 AM. A sell-off took the index down around 600 points from the day-high. But in the last hour, banks shot back up to reach back to the opening level. Bank Nifty closed the day at 37,811, up 143 points or 0.38%.

Nifty PSU Bank(-2.9%), Nifty Realty(-2.35%) and Nifty Metal(-2.38%) saw heavy sell-offs in the day. Only Nifty Media closed well in the green.

Asian markets closed mostly in the green today. European markets are trading slightly in the red currently.

News Picks

Kotak Mahindra Bank(+5.3%) continued its rally, with steady buying throughout the day. There was news of the bank acquiring Volkswagen Finance’s assets. The stock had been underperforming for many months but turned bullish in September. The stock along with HDFC Bank(+1.4%) contributed nearly 61 points to Nifty today.

Metals once again continued their fall from yesterday with Tata Steel(-3.5%), Coal India(-3.4%) and Hindalco(-2.1%) closing as top-losers. There were concerns of higher GST on metals.

IRCTC(+2.49%) briefly crossed the 4k mark and closed with good gains.

INDIGO(+10.9%), SpiceJet(+3.4%) moved up after strong August data from the industry.

ZEEL(+3.3%) ends in the green following brokerages ‘upgrade’ their outlook on the company.

Banking and Finance companies – Indiabulls Housing Finance(-5.4%), PNB(-4.9%), Bank of Baroda(-4.1%), IDFC First(-3.5%) and Bandhan Bank(-3.4%) fell in the day.

Markets Ahead

This is the 4th week in a row of Nifty 50 closing in the green along with Nifty Small & Midcap.

Most interestingly, Bank Nifty also gave a breakout to all-time highs outperforming Nifty.

The major event to be watched today is the GST Council Meeting. The change in tax of certain industries could result in a lot of stock-specific rallies/falls.

UP Finance Minister said today that the state is against adding petroleum products under GST. Revenue loss for states and the centre may be too hard to handle in the current situation, so this is not expected to happen.

In the market, Banks may continue their bullishness as indicated towards today’s closing time. The rest of the market may enter into a mood of consolidation.

We have a weekend ahead of us to study charts and companies. So let’s make the most of it!

How did this week go for you? Did you catch Bank Nifty’s sharp moves today? Let us know in the comments section of the marketfeed app!