Today’s Market Summarised

Nifty opened the day at 14,724 with a near 100 point gap-down. Just as we discussed in the important levels, 14,750 acted as a good resistance and Nifty was not able to sustain above this level. So with global cues remaining weak, the index started falling. 

14,625-14,635 acted as a good zone today. Nifty tried to recover afternoon but saw a sharp fall just after 2.45 pm. The index fell more than 115 points in 20 minutes. Nifty closed the day at 14,549, down 265 points or 1.79%.

Bank Nifty opened the day at 33,940 with a gap-down and could not even cross 34,000. After consolidating, the first 30 minutes, Banks started falling across the board. The index saw consolidation around 33,600, and then took support at last week’s low(33,400). But in the afternoon fall, this was broken too. Bank Nifty closed the day at 33,293, down 891 points or 2.61%.

All sectoral indices except Nifty Pharma closed in the red today, that too all below 1%. Nifty Metal was down more than 3% in the day, followed by Nifty Realty and Nifty Auto.

All major Asian and European markets are currently in the red.

News Picks

Only 3 stocks from Nifty 50 closed in the green today. 

Cipla shares were the top-gainer, going up more than 2%. Yesterday, the company’s subsidiary partnered with a US firm to develop new antibiotics. The company reappointed Umang Vohra as MD and Global CEO for 5 more years.

Escorts shares remained down even with the company announcing price hikes on its tractors from April 1.

Adani stocks saw huge profit booking in the day after 2 days of amazing gains. Adani Ports was down more than 4.2%, closely followed by Adani Enterprises.

With base metal prices falling across the world, and US dollar strengthening, metal stocks crashed in the day. Tata Steel was down more than 5% to be Nifty’s top-loser.

RVNL shares crashed more than 9% in the day with Government selling 10% equity at a floor price of ₹27.50/share. Today’s close price was Rs 27.65 after the fall.

Indiabulls Real Estate slipped another 6.32% in the day. All last week, promoters of the company were selling their stakes. The stock is down 30% from 5th March levels.

Shares of Prestige went up nearly 0.5% in the day, in a day where the Realty index fell nearly 3% in the day. The company will take over a Mumbai housing project from bankrupt Ariisto Developers for Rs 10,000 crore. This will be the companies largest project in Mumbai.

Shares of paints companies closed in the green, even when the market was generally down. Asian Paints was up 1.38% with Shalimar Paints up more than 2.5% in the day. This happened as prices of a key raw material for the industry, crude oil derevatives, fell across the week.

Markets Ahead

A day of broad sell-off in the market today. More than Nifty, Bank Nifty looks more bearish. The index has broken last week’s support of 33,400 and closed below it. 

Bank Nifty is at its lowest level since 1st February(budget day). But Nifty was at 14,350 just last Friday, still 100 points away from today’s close.

A new double mutant strain has been detected in India along with 771 variants of concerns, according to the Central Government. This had no immediate impact on the market but maybe would have caused it to go down near the end.

Also, the Health Ministry has asked states to consider imposing local restrictions due to the spread of Covid-19. Mumbai has reported the highest ever daily cases.

Again, when the index is weak, it searches for reasons to fall. And I believe this is just one such reason. There were also reports of PM Modi addressing the nation tonight, which turned out to be untrue.

If Bank Nifty keeps falling below the high of the February 1st candle, Nifty will also be dragged down. A usual day of Wednesday volatility in the market. Tomorrow is the monthly expiry so expiring some more firework movements in the market tomorrow.

Catch you all on The Stock Market Show tonight!