Today’s Market Summarised

What a day for a Nifty. Once again proving that Nifty is a trader’s paradise. After opening with a gap-up, Nifty remained volatile and consolidated for the first one hour.

But just after 10:30 am, the index broke out of its opening range. It slowly went up, consolidating along the way and touched the day-high just after 2:30 pm. Then it started falling, and within 50 minutes, the index fell nearly 200 points. Nifty recovered a bit to close the day at 15,109, down 6 points or 0.04%. noon and Nifty set new day-highs. Cooling down, the index closed the day at 15,127, up 203 points or 1.36%.

Bank Nifty opened flat and fell in the first 30 minutes. After taking support near 35,600, Bank Nifty reversed and started moving up 900 points till near 36,500. This resistance was exactly near yesterday’s high. After falling from this level, Bank Nifty fell to close at 36,056, up 72 points or 0.20%.

Only Bank Nifty closed in the green today. Nifty Media, Auto and Pharma sectors fell most in the day.

Asian markets closed flat to green today. European markets are currently trading in the red and definitely contributed to Nifty’s fall.

News Picks

When banks and metals were pulling the index down in the morning, IT stocks helped push up the index. When Banks and Metals started moving up, IT stocks cooled and fell.

Life insurance stocks including SBI Life and HDFC Life gained most in the day in Nifty 50 stocks after falling for many days even in between general market rally.

Asian Paints also featured among the top gainer’s list after continuing its rebound from 2370 level.

IT stocks gained in the early hours of the market but could not sustain. Only Wipro could end on the top-gainers list of Nifty 50.

Auto stocks fell after yesterday’s rally. M&M, Tata Motors and Bajaj-Auto fell among the most in the day.

Muthoot Finance reported a net profit increase 22% YoY to Rs 991.4 crore. Net interest income also increased by 13% to Rs 1,819 crore. Shares jumped after this result to close more than 1% up.

Shares of oil retailers fell even as petrol prices in the country reached all-time highs. IOC was the top-loser in Nifty 50 along with factoring in the Rs 7.5 dividend payout.

Shares of Berger Paints jumped nearly 2% as the company reported a 50% YoY increase in net profits to Rs 274 crore for Q3.

Shares of Tata Chemicals jumped 7.82% touching new all-time highs. It crossed this level with high volumes. Balaji Amines jumped 14% and Aarti Industries also jumped more than 3.5%. Balaji Amines jumped after positive commentary from the management along with an increase in sales volumes with net profits tripling in Q3, with an increase in revenues.

Markets Ahead

Nifty has corrected after the many days of jumping up. Even today, the index touched new highs but the entire market saw a good sell-off after touching 15,250 levels. Bank Nifty has also closed flat in the day. 

15,000 will be taken as a good support tomorrow, and 14,800 can also be watched below. Today’s high, both in Nifty and Bank Nifty can be seen as resistance levels for the next day.

PowerGrid shares are taking resistance at a good level in the monthly charts. Can keep watching. Tried to move up in the day, but fell beautifully afternoon. Fun fact: PowerGrid is also an Internet Service Provider(ISP).

Nifty has broken a channel it was trading in, and might not touch the 15,500 level which we talked about yesterday if support is not taken at 15,000 this week. Try identifying this simple channel in the 5-minute chart. If this channel is not re-entered with a good movement, Nifty will see consolidation ahead.

30-min chart of Nifty

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.