Today’s Market Summarised

Consolidation and slight profit booking for the last day of the week.

NIFTY opened the day at 17,155 with a gap-up and moved down. It quickly broke the support at yesterday’s low and went down to 16,900 levels. With some sharp moves near the closing time, NIFTY closed the day at 17,003, down 69 points or 0.40%.

BANK NIFTY opened the day at 35,327 with a gap-up. It fell more than 700 points in just over an hour and then consolidated till closing time. Bank Nifty closed the day at 34,857, down by 334 points or 0.95%.

Only NIFTY IT(+0.98%) closed in the green today. NIFTY PSU BANK(-1.9%), NIFTY REALTY(-1.4%), PHARMA(-1.1%) and AUTO(-1%) closed in the red, 

Most Asian markets closed mixed in the day. All European markets are trading flat currently.

News Picks

IT stocks led gains in NIFTY 50 today. HCLTech(+3%) and TechM(+2.3%) closed among the top-gainers.

Coforge(+3.4%), LTI(+1.08%) and Mphasis(+1%) were among other IT stocks closing in the green.

SBI Life(+2%) bounced back in the day after trading near its 5-month low.

Data Patterns lists with a premium of nearly 46% at Rs 856 vs issue price of Rs 585/share. The stock closed at 755, 29% up.

Auto stocks closed in the top-losers list of NIFTY 50, led by a fall in Eicher(-1.7%) and M&M(-1.7%).

Financials including Axis Bank(-1.6%), Bajaj Finserv(-1.5%) and Kotak Bank(-1.5%) closed in the red along with HDFC(-1.4%).

L&T Finance(-6.9%), Shriram Transport(-2.7%), Muthoot Finance(-1.4%) and Chola Fin(-3.6%) fell after gaining yesterday.

Markets Ahead

NIFTY looks like it is trading in a downwards channel from the 19th of October. Seeing selling pressure every time the market moves up is what we are seeing.

The gap-up in the morning was not sustained and there was a fall. There was less volume reported in the Indian and international markets as traders stayed away on Christmas eve.

With today’s closing, December is still in the red for NIFTY. In fact, today’s high was around the same level as of December 1st’s high. If the selling spree by Foreign Investors continue next week and through the beginning of next year, we can expect some tough months for positional traders. 

In order to expect an uptrend around the market, NIFTY would have to break out of the current downwards channel that we discussed above.
Merry Christmas to all celebrating!

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