Today’s Market Summarised

A bearish day in the market with many of yesterday’s gains being lost.

NIFTY opened the day at 17,433 and moved up in the beginning. But from the initial highs, the market started falling heavily. Towards the end of the day, a fall of nearly 300 points was seen from the top. NIFTY closed the day at 17,196, down by 205 points or 1.18%.

BANK NIFTY opened the day 36,516 and went up nearly 300 points. The index fell along with the rest of the market and tried to take support at 36,500. But once this level was broken afternoon, there was a heavier fall seen in the index. BANK NIFTY closed the day at 36,197, down 311 points or 0.85%. 

All sectors except NIFTY MEDIA closed in the red. NIFTY FMCG and NIFTY FINSERV closed with a more than 1% fall.

Major Asian markets closed mixed today. All European markets are trading slightly in the red currently.

News Picks

UPL gained in the day and closed among the top-gainers in NIFTY 50. Parliament is looking to spend more than expected on fertilizer subsidies. Other chemical stocks also showed strength.

BPCL, ONGC and IOC closed in the green. The stocks are trying to gain back after the November fall.

PowerGrid fell in the day after closing as the top-gainer yesterday. Reliance also fell along with Kotak Bank, TechM and Asian Paints to close among NIFTY’s top-losers.

IEX had a stock split and gained 5% in the day. 

Idea(+14%) shot up once again near closing time. The stock gained after the government returned bank guarantees worth nearly Rs 12,000 crores to the company.

Except for SunTV and Inox, all Nifty Media stocks closed in the green today. Network18, PVR gained more than 3% each while ZEEL gained 2.16%.

Markets Ahead

NIFTY closed in red for Friday but has ended the week in green. In fact, NIFTY has ended a week in green after 2 weeks in red.

Reliance was the major contributor of bearishness to the market today. The stock is trading rangebound for many days now and took resistance at 2500 and support at 2400 today.

NIFTY is still in a sell on rise mood, with Foreign Institutional Investors continuing their heavy selling spree. DIIs are failing to keep up as funds are probably drying up as retailers book profits from mutual funds due to economic re-opening spending. You can read more about DIIs here.

NIFTY will only turn bullish now if it can break the high from last week. That level is somewhere around 17,600. The 50-day Moving Average is near 17,800. Both levels are important in the next phase of market movement. 

For a bearish view, you can watch out for 16,980 intraday and a close under 16,800 for positional trades. The best way to shield yourself from this situation is to spread out investments as we have been discussing! Hope you had a profitable week!

Meet you all on The Stock Market Show at 7 PM on YouTube!