Today’s Market Summarised

A day of high consolidation near all-time highs for Nifty.

Nifty opened the day at 15,848 and was very volatile. Even though it tried to move up, the 15,900 level from yesterday could not be crossed. Huge selling pressure was seen in Nifty, pulling it down to 15,750. Even though the index tried to recover, a last-minute fall took Nifty down again. Nifty closed the day at 15,767, down 101 points or 0.64%.

Bank Nifty also interestingly shot up in the morning after opening at 35,197. It even crossed yesterday’s high but then could not sustain there. 35,000 was broken in the first fall, but Bank Nifty somehow managed to close the day at 35,003, down 244 points or 0.69%.

Nifty Metal(-2.85%) and Nifty Realty(-1.26%) closed with losses. Nifty Media and Nifty PSU Bank closed 1% down each. All other sectors mostly consolidated, not moving more than 1%.

Asian markets closed mostly in the red today. European markets are all trading flat with slight bearishness.

News Picks

Metal stocks fell sharply after China ordered their companies to reduce imports. The country may also release its reserves of Copper, Aluminium and Zinc soon. SAIL(-4.4%), Tata Steel(-2.7%), JSW Steel(-2.7%), Jindal Steel(-3.5%), Hindalco(-2.7%), Nationalum(-2.6%), VEDL(-2.4%) closed with losses.

Adani Ports closed 7.2% down in the day as Nifty’s top loser. All Adani stocks closed with losses with Adani Ent(-7.2%) also down. You can read all about the Adani controversy here, looks like it’s not over yet.

LTI said it has signed a definitive agreement to acquire Pune-based digital engineering company Cuelogic Technologies. The stock closed 1.3% up

Fertilizer stocks: Sources say Govt planning to approve extra Rs 14,775 crore subsidy on Phosphorous & Potassium Fertilizer. FACT(+13%), RCF(+4.3%), NFL(+3.8%), Chambal Fert(+6.8%) Deepak Fertilizer(+2.4%) moved up although largecaps like UPL and Pi Industries did not.

RITES reported Q4 consolidated net profit at Rs 142 crores, up 39% compared to last quarter. The stock closed 2% down.  

Sources say that the government may announce a new credit guarantee scheme for health infrastructure for Rs 50,000 crores. You can look into some stocks for study.

Jubilant FoodWorks reported good Q4 results and the stock shot up 4% in the morning and then cooled down to close 1.5% up. Tata Consumer(+2.3%) from the same FMCG closed as Nifty’s top gainer.

Other FMCG stocks including Nestle(+1.59%), HindUnilever(+0.67%), ITC(0.39%) also closed in Nifty’s gainer list. 

LIC Housing Finance reported a lower standalone profit at Rs 398.92 crore in Q4FY21 against Rs 421.43 crore in Q4FY20. The stock closed 5.11% down in the day.

Energy stock NTPC(+1.7%) closed with gains. JSW Energy(+7.4%) and Tata Power(+3.11%) also gained.

ONGC(+1%) moved up further and has more upside potential as global crude oil prices touch 2-year highs.

Markets Ahead

Nifty indeed showing weakness at the top. After yesterday’s indication of weakness, Nifty closes with 130 points fall from the day-high.

Reliance pulled down Nifty by 30 points but is currently near the 2,200 support zone. 

With the data we have now, Nifty is likely to close between 15,700 and 15,800 for tomorrow. Even with the last-minute fall, Nifty managed to close above 15,750 and Bank Nifty above 35,000.

Markets around the world are correcting a bit ahead of the Fed Announcement. Traders are looking for any signals on when and how the U.S Central Bank will start to reduce support for the economy.

Markets may become volatile tomorrow with it being the weekly expiry as well. Looking forward to cues from the U.S. Markets for tomorrow’s opening.

Catch you all on The Stock Market Show tonight!