Today’s Market Summarised

  • Nifty opened the day at 11,409 level with a gap-up opening today. Global markets were expected to bounce back after yesterday’s panic fall. The index mostly consolidated between 11,380 and 11,415 today. Nifty broke this channel near market close time and managed to end the day at 11,371.60, up 59.40 points or 0.53%. With this, the index has closed in green for the week.

  • Bank Nifty continued to show signs of recovery today. The benchmark tracking major banks in the country opened the day at 22,190 with a gap-up. After consolidating between 22,250 and 22,340, the index closed at 22,299.60 up 1.36% or 300 points. Nifty PSU Banks (index of public sector banks) outperformed Nifty Private Bank index.

  • Major Asian markets closed in green. European Markets are indecisive and trading mixed.

News Picks

  • Shares of Divis Labs closed at Rs 3,260, up 2.22% today. SBI Life closed at Rs 864.40, up 1.35% after making a day high of Rs 889.80. These jumps came after the inclusion of the stocks to the Nifty 50 index. Bharti Infratel and Zeel were removed from the list to make way for these 2 companies.

  • Shares of Zee Entertainment Ltd (ZEEL) closed as the top loser in Nifty 50, closing at Rs 192.05, down 3.71%. The fall comes after the share rose almost 50% from August 3rd levels. Official exclusion of the share from the benchmark index was confirmed yesterday.

  • Shares of UltraTech Cement closed at Rs 4,195 , up 1.22%. Meanwhile Hindalco slipped to Rs 195.80, down 1.61%. These moves came after the news that these two companies had entered into an agreement to drive growth. You can read more in our morning article here. News creates volatility. Positive news does not always mean prices will shoot up, nor will negative news always mean prices will crash.

  • Asian Paints created a fresh all-time high and closed at Rs 1,957.90, up 4.43%. The share gained high momentum after breaking the previous high and long term resistance of Rs 1,915. Checkout the 1 day chart to see the levels and understand the power of price action!

  • Shares of NTPC and PowerGrid rose today to become the top performing stocks in Nifty 50 today. NTPC gained 5.09% (LTP: ₹106.25) while Powergrid rose 4.64% to close at ₹189.60. The receivables of the power companies had considerably reduced after the rollout of government schemes to increase liquidities for industries.

  • The India Volatility Index (VIX) closed below 20 levels, falling 4.45% to 19.7. This signifies the reduction of volatility in the market

Markets Ahead

With gold prices falling over ₹2,000 per 10g in the market, and the volatility index coming down below 20, I feel it is safe to say that the markets are stabilising. The number of days with huge upward or downward movement has already reduced. Markets are a lot calmer now, which means it is a lot safer to invest in! There are opportunities everyday in the stock market and you just have to find the best ones.