Today’s Market Summarised

Nifty witnessed a huge intraday fall but closed flat for the day with high volatility. After once again opening with a huge gap-up at 15381, market kept going up for the first 20 minutes to touch a fresh all-time high of 15,432. It fell from that level to take support at the opening range, but broke that level for good after 11 am. Then there was no looking back. 

Just ahead of 2 pm, Nifty touched a low of 15,242, down 190 points from the day high. If you remember, we had marked 15,240 as an important line. Open the charts and you will understand. Nifty then recovered a bit to close at 15,313, down just 1 point or 0.01%.

Bank Nifty too opened with a gap-up but fell sharper than Nifty. After opening at 37,550, Bank Nifty quickly jumped up to create newer highs with the help of private banks. But this was not sustained and the index fell after crossing the opening range with a big red candle. 37,000 acted as support but even this was broken with the index falling even further. The index fell nearly 1,000 points intraday.

Bank Nifty recovered a bit to close just at 37,098, down 207 points or 0.56%.

Nifty Metal closed as the best performing sector in the day, gaining nearly 2.9%. PSU Banks index closed 1.6% up. No other sector closed more than 1% up in the day. Nifty IT fell 1.5% in the day, with no other sector closing more than 1% down.

European markets are all trading flat, taking rest after multiple days in green. Those Asian markets which were open also traded in the flat to the green zone.

News Picks

PSU energy and power stocks including ONGC, PowerGrid and NTPC featured as the top-gainers in Nifty 50. IOC also featured in the list of gainers.

Shares of Axis Bank and ICICI Bank featured as the top losers today, after being the top gainers yesterday. Like childhood friends, they continue to move together pulling Nifty down by 33 points. They helped in Bank Nifty’s fall today even as Kotak Bank(up 1.7%, crossed Rs 2,000 zone) and HDFC Bank(up 0.62%) stayed in the green.

RBL Bank and Bandhan Bank shot up through the day, with good volumes even as Bank Nifty fell. Once again reminding you that midcaps will perform when the major indices are consolidating. 

PSU Banks moved up in the day, with their index closing strongly in green when Bank Nifty fell. Bank of India, along with Central Bank, Maharashtra Bank and IOB all closed 20% up just today! They jumped up on hopes of privatisation by the government. None of them have weightage in Bank Nifty, hence they did not contribute.

Tata Steel and Hindalco closed among the top-gainers after many days of needless falls. They helped in pushing the metal index up. Steel consumption is about to go up with the Ministry of Road Transport and Highways issuing orders for the usage of any different types of steel for the construction of highways. Jindal Steel also gained 7.79% in the day. SAIL gained 3%, along with National Aluminium and NMDC.

Shares of Reliance gained today to close above Rs 2,050. It was going up in the morning while Nifty was falling. Contributed 17 points to Nifty today.

Apollo Hospitals gained 3.6% again after the company’s positive results last day.

Shares of Naukri fell 7.7% as the IT sector remained bearish. Profits of the company have been falling for 5 quarters in a row, but the stock will surely continue its rally back up after finding support. Only 3 out of 7 stocks in the Nifty IT index closed in green. 

Shares of Adani Enterprises was up nearly 5-6% intraday, even touching the Rs 800 mark. It fell to close in the green, above 2% up for the day.

Shares of Trent went up more than 7% today. You can check out the article we wrote on the company yesterday, here.

Shares of HEG and Graphite India again went up in the day, gaining more than 15% each. These companies build important components in the manufacture of batteries and will be useful in the Electric Vehicle revolution. Shares of Tata Power also went up 4%.

Markets Ahead

Just as expected Nifty closed flat for the day. And again as expected it was a good volatile consolidation. I believe that the primary reason for Nifty’s consolidation today was the lack of cues from the US markets yesterday, which were closed. The analysis that Nifty would touch 15,400 by this expiry worked anyway. Helped in managing my swing and options positions accordingly.

The breakout in Kotak Bank looks interesting. Study the charts. Also Adani Ports seems to have broken out of a long uptrend move, and might see some consolidation before further movement. Might be a good point for investors if you could catch a dip in the stock.

Currently, as we speak, US Futures are trading with a premium. If this is sustained, then we might see Nifty gain some strength again tomorrow.

Catch you all on The Stock Market Show tonight!

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