Today’s Market Summarised

Wednesday volatility in the market. Nifty closes flat while Bank Nifty shoots up near closing.

Nifty opened the day at 17,377 and was in a mood to consolidate. After moving sideways till noon, the index suddenly saw selling and went down till 17,250. Nifty took support at this zone and saw good buying right after this. After almost reaching back to day-high, Nifty closed the day at 17,353, down 8 points or 0.05%.

Bank Nifty opened the day at 36,538 and was bullish in the morning. Resistance was taken near the 36,800 zone multiple times before the entire market moved down pulling banks down as well. Support was taken at 36,500 and the index bounced back to even cross the day-high near closing time. Bank Nifty closed the day at 36,768, up 299 points or 0.82%.

Bank Nifty(+0.82%) and Nifty PSU Bank(+0.71%) were the better off sectoral indices, while all other sectors consolidated.

Most Asian markets closed mixed in the day. European markets are all trading well in the red currently.

News Picks

Kotak Bank(+2.8%) moved up with strength after a 4-month consolidation. The stock closed as Nifty 50’s top gainer.

There is a proposal to bring infant nutrition and food under BIS certification. Nestle(-2.6%) moved down and closed as Nifty’s top-loser.

Hindustan Unilever(+0.84%), however, stayed steady and moved up after increasing prices of Surf Excel, Rin, Lifebuoy products.

Info Edge(+8.6%) moved to fresh 52-week highs with the possible IPO of its invested company PolicyBazaar soon. The business outlook of the company is also looking positive, as reported by brokerages.

IRCTC(+0.29%) hit an all-time high of Rs 3,422 and then fell 4% from the day’s high. The record date for the 1:5 split is yet to be announced.

Electricity financing companies under the Central Govt, PFC(+3.6%) and REC(+4.4%) moved up in the day. Tata Power(+2.4%), Torrent Power(+2.3%), Indian Energy Exchange(IEX)(+3.5%) also moved up.

With Mutual Fund data for August coming out and showing equity inflows of Rs 8,666 crores, shares of Asset Management Companies traded in the green. Even though it is lower than July’s Rs 22,583 crores inflow to equities, it is because July had many new mutual funds attracting the interest of retailers. HDFC AMC(+4.5%), Nippon Asset Management(+3.7%), UTI AMC(+1.2%) closed in the green.

Cabinet approves incentives worth Rs 10,683 crores for textiles. Trident(+4.8%), Alok Industries(+7%), Filatex India(+12%), Arvind Fashion(+5.1%), Sutlej Textiles(+6.5%) and Siyaram Silk(+2.3%) moved up. Yesterday’s gainers from the sector closed in the red.

IDEA(-2.4%), Airtel(-0.4%), IndusInd Bank(-0.16%), IDFC First Bank(-0.5%), Indus Tower(-2.4%) moved down on reports saying the Cabinet did not consider telecom relief packages today.

Markets Ahead

Nifty once again closed with a red candle in the daily charts with IT stocks and Reliance cooling down.

Bank Nifty opened above our 36,500 level and then bounced up from there. The index touched nearly 36,850 near market closing time. Kotak Bank giving a breakout in the charts might soon give more move with the kind of volume and power it has shown today.

Wednesday volatility was what we expected and it is what we got. After showing bearish signals in the first half, the market bounced back afternoon.

Even though global markets are in the red, Nifty managed to close flat with power from the top private banking shares – Kotak Bank, HDFC Bank, ICICI Bank and Axis Bank contributing nearly 44 points to the index.

Both small-caps and midcaps index outperformed Nifty today.

With tomorrow being the weekly expiry, we can see a lot of call options being written at 17,400 and 17,500. This indicates resistance for Nifty in the upward zones. The bears might take over after giving the bulls more hope that the rally will go on. Will have to watch if Nifty closes with a gap-up above 17,400 which might scare the option sellers at that zone.

What do you think? Can the bulls charge through and hit 17,500? Or will correction in Nifty IT and other sectors pull down the market? Let us know in the comments section of the marketfeed app.