Today’s Market Summarised

Another day, another fall. Nifty opened with a gap-up at 14,479 and started forming back to back red candles. What’s funny is that almost every stock, along with the indices had opened at their all-day highs and fell today. After trying to recover quite a few times, Nifty gave in and fell sharply after 1:30 pm and closed at 14,238, down 133 points or 1.33%.

Bank Nifty opened at 31,524 again with a gap-up and fell sharply to take support at 31,000. After flying back up 700 points, the index consolidated only to fall again after noon. Bank Nifty closed the day at 31,198, up 31 points or 0.1% today.

All indices except NIFTY PHARMA closed in the red. NIFTY PHARMA gained 1.7% whereas NIFTY ENERGY & NIFTY IT shed 2.8% and 1.7% respectively.

Asian markets mostly traded mixed. European markets are all in the red.

News Picks

GRASIM gained the most among NIFTY 50 after the company formally announced their entry to the paint sector. The stock was up by 6.55% at closing. On the contrary shares of a potential future competitor, Asian Paint fell by more than 3%.

Despite the index falling sharply, UPL continued its rally. UPL closed the day by gaining more than 3.7%. 

HDFC BANK is up by 1.3% and AXIS BANK is up by 2.1%. Both these stocks held up BANK NIFTY in the day. AXIS BANK rallied as the company is set to announce their Q3 results day after. HDFC Bank may soon see its ban on Digital 2.0 reversed. 

Kotak Bank witnessed a sharp fall with heavy volatility after the Q3 results were announced during market hours. Profit booking kicked in the stock even as the bank reported a 16% jump in net profit over a year earlier to Rs 1,853 crore. 

Shares of Reliance fell the most among Nifty 50 stocks, by falling over 5.3% just today. This was after the company announced its results on Friday after market hours. 

Apollo Tyres fell more than 8.8% as profit booking kicked into the stock.

Pharma stocks rallied on the expectation that the sector will benefit in the upcoming budget. Cipla gained mostly on the expectation of good results. I feel pharma companies with good exposure to Covid medicines would go up, while others might see corrections as results will disappoint.

Markets Ahead

With tomorrow being a holiday, markets were trading cautiously. The fall and consolidation were to be expected around the budget, after which it may be highly volatile. I do expect Nifty to give respect to 14,000 as key support and maybe bounce back up. But again, if this a global trend of falling markets, then we have to be prepared for further falls.

Are the bulls just waiting for their big move? Retailers selling and squaring off in the panic may result in greater fall, and this is when big players would come in and enjoy the discount sale. Keep watching for a stimulus from the US Government, which might push the market again into buying mode again. I would say, don’t keep a clear bearish view until the market falls below 14,000.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.