Today’s Market Summarised
Nifty opened the day with a gap-up with positivity from SGX Nifty. After falling heavily yesterday, the index gained a bit today to gain back from the losses. But we cannot yet say that the downtrend has been broken, and will have to wait till next week to know. Nifty ended the week with losses.
After opening at 11,734, the index found resistance near 11,780 and fell more than 100 points to take support at 11,670. The index gained slowly and made a day high of 11,790. Nifty consolidated after noon to close at 11,762.45, up 82.10 points or 0.70%.
Bank Nifty had a gap-up opening too, and surprisingly the index took Nifty up today. After opening near 23,250, Bank Nifty briefly went down. But after 10am ,the index of banks slowly went up to close the day at 23533.25, up 460 points or 2%.
Only Nifty Media and Nifty IT closed with losses today. While media’s loss was headed by ZEEL, IT was pulled down by Mindtree. Nifty Metal did exceptionally well today.
Asian markets closed mixed. European markets are currently trading in green.
Shares of JSW Steel, Tata Steel and Hindalco led the Metals rally today. All of them featured in the top gainers list for today (shown below). The sector had been underperforming Nifty for a while now, and has started moving up now. Can look for further moves in the coming days, as well.
Shares of Mindtree fell prey to the profit booking which caught Wipro and Infosys earlier. After opening flat, the stock crashed more than 10% to its first lower circuit before stabilising to close the day at Rs 1,325.10, down 99.75 points or 7.00%.
Shares of Air Conditioner manufacturers Voltas (up 4.25% to Rs 701) and Blue Star (up 4.3% to Rs 639) jumped after India banned imports of Air Conditioners.
Auto stocks stayed bearish even after Society of Indian Automobile Manufacturers (SIAM) gave positive commentary on the industry’s current outlook. Sales have been increasing, and reportedly Diesel consumption rate is also back to pre-covid levels. The need for personal mobility is increasing, and economical and low-cost automobile sales are expected to go up.
Shares of BPCL gained as government sources said the company is not looking for further postponement of stake sale. Also, Bharat Petroleum is trying to cut dependence on LPG from the Middle East.
Shares of UPL fell 7.73% to Rs 467.40 after auditing firm KPMG resigned as auditor to the company’s Mauritius arm.
European lockdown seems to have caused just a panic sell-off in global markets. marketfeed is soon publishing an article talking about the seriousness (if any) of the London Tier-2 lockdown.
After ending the week with a big red candle, Nifty seems to have lost its bullishness. US elections are also closer than ever, so you can expect similar volatility in the coming weeks. Also keep watching out for China-US tensions in the international market.
Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.