Today’s Market Summarised

A day of a heavy fall in the market and an almost V-shaped recovery towards the end.

Nifty opened at 17,900 and was immediately bearish. Just around 11 AM, the index started testing its 17,800 support zone. Once this was broken, a free fall of nearly 230 points took Nifty to its day-low just 1 hour before market close. But in the last hour of trading, heavy institutional buying was seen and Nifty closed the day at 17,748, down 106 points or 0.60%.

Bank Nifty opened the day at 38,362 and moved down. In two hours after opening, the index of banks was testing its support at 38k. Once 37,800 was also broken, there was a heavy sell-off which pulled Bank Nifty down another 500 points. A last-hour buying gave strength and Bank Nifty recovered to close the day at 37,945, down 226 points or 0.59%.

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

News Picks

Energy stocks once again ruled the top-gainers chart in Nifty 50. PowerGrid(+4.5%), Coal India(+4.5%), IOC(+3.6%), NTPC(+4%), IOC(+3.6%), BPCL(+2.1%) and ONGC(+1.5%) closed well in the green. Energy shortages around the world and the upcoming winter season have caused energy prices to increase globally as we have been discussing in the Top International News article.

BPCL(+2.1%) to set up 1,000 EV charging stations.

The global energy shortage along with rising costs will create a dream bull run for the energy sector in the Indian market for the next 10 years. Companies will be incentivized to expand and meet demand. Add the best to your portfolio!

Power Finance Corporation(+5.4%), Rural Electrification Corp(+5%), Hindustan Petroleum(+5%), GAIL(+3.2%) were among some other stocks which shot up.

Kotak Bank(+1.7%) kept the Bank Nifty stable by hitting a fresh 52-week high towards closing. PNB(+2%) also closed in the green. Last day, Finance Minister Nirmala Sitharaman had said that India needs four or five more banks like SBI.

All Nifty IT stocks closed in the red with TechM(-3.4%), Wipro(-2.1%), HCL Tech(-2%) and Infosys(-1.9%) closed in the top-losers of Nifty 50.

Telecom shares saw profit booking with Bharti Airtel(-3.6%) closing lowest in Nifty. Vodafone Idea(-3.5%) also closed in the red. Reliance(+0.9%) was confused between a fall in telecom shares and a jump in energy stocks after hitting a fresh 52-week high.

IndiGo(-2.8%) fell after a downgrade of the stock by Goldman Sachs. Fellow airline SpiceJet(-1.6%) also closed in the red.

BHEL(+5.9%) bagged an order from Goa Shipyard for a warship gun mount. Bharat Electronics Ltd(+3.1%) also jumped up.

Pharma stocks heavy buying towards the day closing as smart money looked to invest their money in underperforming sectors. 

JSW STEEL(+1.8%) to consider Q2 results on October 21. The stock closed in the green along with other steel stocks Jindal Steel(+1%), SAIL(+1%) and Tata Steel(+0.8%).

Markets Ahead

Today was the day of public sector companies with Nifty CPSE up 3%. CPSE stands for Central Public Sector Enterprises and includes the companies which featured in Nifty’s top-gainers.

The global energy shortage and the price increase is a current phenomenon that we have been discussing for many months. It is now getting tighter with stricter emission norms and increase in global demand leading up to the cold months. As I discussed above, governments will be helping these companies to expand as demand for a necessity like energy will only keep on increasing.

Reliance can be a good diversified investment into both new-age tech with Jio, Retail and in Energy business for the next 5-10 years. Will be increasing exposure to my long-term portfolio.

Anyway, a swift fall in the market after 17,800 was broken. Almost all market participants including us were expecting a fall if this level was broken, and that is exactly what we got. European indices and U.S. Futures are still in the red, indicating there is still a profit booking sentiment globally. We can watch for 17,500 as support and 17,800 as resistance tomorrow.

Did you get trapped in the intraday volatility? Or could you make some money out of it? Let us know how your day went in the comments section of the marketfeed app!