Today’s Market Summarised

Nifty continued its weakness today.

Nifty opened the day with a slight gap-up at 15,005. After consolidating, it moved down to 14,940 but moved back up with ease. 15,050 was taken as a good resistance and the benchmark index of NSE kept falling throughout the day. Nifty closed the day at 14,910, down just 19 points or 0.13%.

Bank Nifty opened the day at 35,404 and started falling. It did not reach back to this level even once in the day. Support was taken multiple times at 34,750 levels with the index closing near the day-low at 35,804, down 377 points or 1.07%.

Only Nifty IT closed with more than 1% gains. Nifty Bank and Nifty PSU Bank closed more than 1% down in the day. 

Most major Asian markets are trading flat to green. European markets are all trading in green at the time of Indian market close.

News Picks

ASIAN PAINTS ended up as the Nifty 50’s top gainer. The stock went up nearly 5% today. The company has scheduled a conference call with an asset management firm, Wellington Management Singapore on 18th March. 

DR REDDY gained 2.47% as the pharma giant completed their Phase-3 trials of Covid 19 vaccine Sputnik V. Data on efficacy is likely to be out soon.

Shares of Gland Pharma went up nearly 5% after the company entered into an agreement to produce and supply 252 million doses of Russian Direct Investment Fund’s (RDIF) Sputnik V COVID-19 vaccine.

Shares of Aarti Drugs went up by more than 3% after the company announced to consider share buyback on March 19. 

Shares of BHARTI AIRTEL & IDEA went up by more than 1%. The Supreme Court had resumed hearing both their pleas over AGR recalculation at 10.30 am today. However, it has been delayed. 

All participants of NIFTY IT closed in green except TECHM. TECHM closed flat after being up yesterday. Shares of INFY hit a fresh 52 week high today. 

FMCG majors showed strength today with HINDUNILVR, ITC & BRITANNIA featuring in the top gainer section. Yesterday, ITC announced that they had forayed into cakes and milkshakes while expanding in categories like chocolates and staples.

Kalyan Jewellers IPO kicked off today. Tracing that, shares of TITAN were generally up in the day and closed above 1500 after being up more than 2% intraday. 

Markets Ahead

Nifty again continued to be technically weak over the whole day, not finding strength to cross 15,050. 14,880-14,900 also looks like a good zone in the index for the short term. I would say that the index consolidated in a 160-point range for the day, along with Bank Nifty. Both indices stayed within yesterday’s wide high and low range. 

One signal that it is consolidation and not bearishness is that broader markets outperformed. Broader markets outperformed in today’s session. The Nifty Midcap rose 0.4% while the Smallcap index ended up 0.3%.

IT shares once again performing great with global, local and technical cues being good for the index. NASDAQ has been recovering from the sharp falls last week.

Global markets are remaining cautious ahead of the US Federal Reserve’s policy meeting outcome. Any change in interest rates will send the markets flying down. Now that I think about it, ANY decision be it good or bad, will cause volatility in the market. 

If it is positive, markets may still see profit booking and a fall. As is always said in the market, the only certainty is uncertainty.

14,800 support still continues to stay strong in the index. Like we had discussed more than a week back, Nifty can regain bullishness only if it closes above the 15,100 resistance in the coming days. Closing above key supports may signal larger falls in the index, it may not be fast but a journey to 14,500 and 14,000 again would not be pleasant.

Also, infrastructure companies will benefit as Union Cabinet approved formation of Development Finance Institution (DFI) for infra with Rs 20,000 crore initial capital to finance long-term growth projects.

More consolidation in the index possible till the Fed Policy Meet.

Catch you all on The Stock Market Show tonight!