Today’s Market Summarised

NIFTY once again opens with a gap-up and closes with a red candle for the sixth day in a row.

NIFTY opened the day at 18,241 with a gap-up and fell 120 points in the first 5 minutes. As the day began, it even broke the 18k support but quickly recovered. After trading in a wide zone, NIFTY closed the day at 18,125, up 10 points or 0.06%.

BANK NIFTY opened the day at 41,024 with a big gap-up of 700 points. ICICI Bank was extremely bullish and the index went up and up with power from the stock. After touching an all-time high above 41,800, the bulls calmed down a bit and a correction of 800 points was seen. BANK NIFTY closed the day at 41,192, up 868 points or 2.15%.

BANK NIFTY(+2.1%), FIN NIFTY(+1.3%) and NIFTY PSU BANK(+1.1%) closed in the green. NIFTY AUTO(-1.1%), NIFTY IT(-1.1%) and NIFTY FMCG(-1%) fell again while others consolidated.

Asian markets closed mixed in the day. European markets are mostly trading in the green currently.

News Picks

ICICI Bank(+10.8%) closed as NIFTY’s top-gainer after an extremely bullish session in the market. The stock was boosted by its Q2 results published on Saturday.

Other Banking stocks, Axis Bank(+3.4%) and SBIN(+0.7%) also moved up and closed in the top-gainers list.

After news last week that Global oil major ExxonMobil Corp is looking at buying a stake in some of the local deepwater fields of Indian explorer ONGC(+2.7%), the stock moved up. Crude oil prices are also moving up internationally.

On the same lines, BPCL(-3.4%) may be facing issues in its road to privatisation with the increasing crude prices and bidders struggling to find partners. The stock closed as top-loser in NIFTY 50.

NIFTY Auto continued its correction and Bajaj-Auto(-2.6%), Tata Motors(-2.2%) and Hero MotoCorp(-2%) closed among the top-losers.

IRCTC(-12.9%), IEX(-8.5%) and MCX(-6.7%) continued to fall heavily and closed in deep reds.

PVR(+6.1%) closed in the green after saying that good movies are lined up for release in Diwali week and that they are expecting good demand recovery.

Railways related stocks which had moved up last day, all went back down in the day. IRCTC(-12.9%), RVNL(-10%-LC), IRFC(-3.2%) and RAILTEL(-4.3%) closed in the red. We had written an article today on the fundamentals and state of their financials.

Shares of Ami Organics(-15.6%) fell sharply after the company said it is seeing margin pressure because of an acquired unit.

Asian Paints(-2.6%) closed in the red after announcing poor results and a fall in margins due to increasing crude oil prices. Other paint stocks including Berger Paint(-2.5%), Indigo Paints(-0.74), Akzo Nobel(-2.4%) and Kansai Nerolac(-1.2%) also moved down.

MCX, Colgate, SRF fell after posting lower-than-expected earnings.

Markets Ahead

The market was supported today by Bank Nifty and especially ICICI Bank. The stock alone gave nearly 140 points to NIFTY without which there would have been a sharp fall below the 18,000 mark today.

The sell-off in mid and smallcap stocks are continuing even as NIFTY holds on. As we discussed on Friday, the results season is not helping these stocks.

The 4-day losing streak in NIFTY has been broken as it closed in green. But on the daily charts, there is still a red candle formed. While today’s green was supported by ICICI Bank alone, there would need to be more to keep NIFTY floating above 18k this week.

How did Monday go for you? Did you have ICICI Bank in your portfolio? Let us know in the comments of the marketfeed app!

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