Today’s Market Summarised

Markets open lower and trade with weakness.

NIFTY opened with a big gap-down once again at 16,613 and tried to move up. Resistance was found at 16,680 and a correction pulled the index down nearly 200 points. Even with some last hour strength, NIFTY closed the day at 16,605, down 188 points of 1.12%.

BANK NIFTY opened at 35,553 with a gap-down and crashed down. The index tried to break the 35k mark and move down but somehow found support from a 2-month low. With a jump of more than 500 points in 20 minutes, Bank Nifty closed at 35,372, down by 832 points or 2.32%.

NIFTY METAL (+4%) once again saw heavy buying for the day. NIFTY Auto (-2.9%), Bank (-2.3%) and Finserv (-2.2%) fell the most in the day.

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

News Picks

Metal stocks continued to outperform the market. Tata Steel (+5.6%), Hindalco (+4.5%) and JSW Steel (+2.7%) closed in the top-gainers of NIFTY 50.

Energy stocks Coal India (+9%), Reliance (+1.6%) and ONGC (+1.4%) shot up today. GAIL (+5.3%), IEX (+3.9%), NMDC (+5.5%), OIL (+9.6%) and others also gained today. 

SBI LIFE (+5.7%), HDFC Life (+7.1%) and ICICI Prudential Life (+1.8%) shot back up from multi-month lows. There are indications that the LIC IPO may not happen this Financial Year if a war happens.

Auto stocks saw heavy selling after the auto-sales data for February was published yesterday. Maruti saw a 7% YoY fall in units sold. Maruti (-6%), Bajaj-Auto (-4.4%), Hero MotoCorp (-4.3%) and Eicher Motors (-3.1%) closed in the top-losers.

Dr Reddy (-5.1%) closed in the top-losers segment, falling to fresh 52-week lows.

Financial stocks saw heavy selling led by ICICI Bank (-3.7%), HDFC (-3.6%) and HDFC Bank (-3.6%).

European gas prices rise nearly 22%. MCX (+7.3%), IEX (+3.9%) and BSE (+2.3%) jumped as trading volumes increased.

Markets Ahead

European benchmark coal prices have risen 15% to Rs 16,665/ton. Crude Oil prices are at their highest since 2013 and natural gas prices are also higher.

This is not good for India. If it is not clear to you, India imports nearly 85% of its petroleum demand and such a drastic increase in prices is not good for the entire economy. It could push retail and wholesale inflation to fresh highs.

Quality midcap and smallcap stocks like IEX and BSE are showing their strength even when the market is lower.

A good bet would be the power sector for the coming weeks. Smaller bets on Metal can be looked at, as they are already at highs.

NIFTY will continue to trade without direction with a lack of a trigger. Any news trigger could push the index to either side. If news start to die down, we can expect a gradual recovery in the next 10-15 days.

At this time, we can look at investing and averaging quality stocks in our portfolio. A systematic investment plan is the best way to go now!

Confused about which stocks to buy in the fall? Invest in NIFTY BeEs ETF! Let us know which your best picks are in the comments of the marketfeed app!

See you at The Stock Market Show at 7 PM!