Today’s Market Summarised

A crazy volatile end to the monthly expiry with banks taking charge.

NIFTY opened with a gap-down at 17,070 and was highly volatile. After the big moves in the start, the index slowly went down till Tuesday’s low. A rally of more than 300 points was seen from the day-low, and NIFTY closed the day at 17,110, down 167 points or 0.97%.

BANK NIFTY opened at 37,114 with a big gap-down. It traded in a wide 400 point range till noon. After making a fresh low, banks fired up with huge. Once the day-high was broken, there was no looking back. A rally of more than 1,100 points was seen from low to high. Bank Nifty closed the day at 37,982, up 275 points or 0.73%.

NIFTY IT (-3.5%) once again had sharp selling while NIFTY Pharma (-1.8%) and NIFTY FMCG (-1.1%) also fell. NIFTY PSU Bank (+5%) closed with huge gains.

Most Asian markets are mostly closed in red. European markets are trading mixed currently.

News Picks

Axis Bank (+2.8%) closed as NIFTY’s top-gainer for the second day in a row after its results announcement yesterday. SBI (+2.7%) and Kotak Bank (+1.8%) also closed in the gainer’s list.

Midcap banks including RBL Bank (+6.3%), Federal Bank (+4.4%) and AU Bank (+2.3%) moved up.

All PSU Banks closed with good gains on the day. Canara Bank (+8.7%), Bank of Baroda (+5%), Union Bank (+8.9%), Indian Bank (+7.7%) and PNB (+4.4%)ended in the green. 

Maruti (+2.5%) continued to move up after its results while Cipla (+2.4%) also moved up after announcing good profits.

IT stocks saw heavy selling with HCL Tech (-4%), TechM (-3.6%), TCS (-3.2%), Wipro (-3.1%) and Infosys (-2.5%) closing in the top-losers of the day. 

Coforge (-7.9%), Mindtree (-6.3%), LTTS (-5%), LTI (-4.7%) and Mphasis (-4.1%) also fell from the IT space.

Torrent Pharma (-15.1%) fell heavily after its Q3 results today to close as the top midcap loser. IndiaMart continued to fall.

GMDC (+10%-UC) closed at upper circuit after reporting Q3 standalone net profit of Rs 150 crores vs loss Rs 3.8 crores last year.

TVS Motors (+1.4%) moved up after saying it will have an important press conference announcement at 5 pm today.

Markets Ahead

What a crazy monthly expiry for the market! Especially in the move of Bank Nifty, jumping 1000 points from day-low in just 2 hours.

Bank Nifty is seeing strength right now ahead of the budget. PSU Banks are showing special strength with the expectations of good budget announcements.

For Nifty, the level of 17,350 is to be watched out for first as resistance. The zone of 17,600-’650 is the next important resistance to be watched.

The fear factor shown by India VIX actually resulted in good volatility today. As the February month expiry starts, get ready for more moves due to results and the 2022 Budget.

Do you expect the breakout in Bank Nifty to continue? Let us know in the comments down below!

See you on The Stock Market Show at 7PM!