Today’s Market Summarised

Another day of gap-down opening in the market but the market consolidates and prevents further falls.

Nifty opened with a gap-down at 17,537 and started falling. Support was taken at only 15,450 and the index continued to trade in a wide 100 point zone. Near closing, the index tried to give a breakout but failed to sustain. Nifty closed the day at 17,532, down 86 points or 0.49%.

Bank Nifty opened the day at 37,183 with a gap-down and fell nearly 300 points from there. The index bounced from here and continued to trade the rest of the day with 37,000 and 37,080 as supports. With some last-minute bullishness, Bank Nifty closed the day at 37,225, down 199 points or 0.53%.

Only Nifty Realty(-1.51%) gave a more than 1% move to either side. All other indices closed with consolidation.

All Asian markets closed in the red today. European markets are also trading in the red currently.

News Picks

The Auto index closed with consolidation in the day with auto sales data being published. M&M was the top-gainer of Nifty 50 while Maruti was among the top-losers. Mahindra also started taking bookings for its XUV 700 SUV from yesterday.

The Bajaj Twins closed in the top-losers list after cooling down from yesterday’s rally. Bajaj Finserv and Bajaj Finance closed in the red.

Asian Paints and other paint stocks continued its bearish rally with crude oil prices rallying. Crude is an important raw material in the production of paint.

Energy stocks stayed in the green on the bearish day with Coal India, IOC, ONGC and PowerGrid closing in Nifty’s top-gainers. Tata Power and GAIL also closed in the green. GUJGAS, OIL, IEX and some other stocks closed in the red.

Pharma stocks saw silent buying once again with Dr Reddy and SunPharma closing among Nifty gainers. 

With gold prices jumping yesterday, gold-backed lenders Manappuram and Muthoot Finance closed in the green.

SSWL closed in the 5% Upper Circuit after crossing Rs 300+ core sales for the third consecutive month.

Paras Defence listed at Rs 469 vs issue price of Rs 175/share but straightaway hit upper circuit. The stock closed at Rs 492, up 181% from its IPO price.

APL Apollo Tubes closed nearly 3% up after reporting Q2 sales volume of 4.27 lakh tonnes, up by 15% compared to last year and down by 11% against last year’s sales.

VST Tillers closed at 10% Upper Circuit after entering into an agreement with Zimeno, USA to develop an integrated tractor powertrain for an electric tractor of Zimeno.

Cummins India fell 7.4% after the Union Power Ministry urged diesel generating (DG) set users to shift to renewable energy in five years.

Metal stocks saw some momentum buildup in the day, might see more bullishness in the coming days.

Eight new stocks have been made available for trading in the Futures & Options (F&O) segment from October 1. This includes Abbott India Ltd, Crompton Greaves Consumer Electricals Ltd, Dalmia Bharat Ltd, Delta Corp Limited, The India Cements Ltd, JK Cement Ltd, Oberoi Realty Ltd, and Persistent Systems Ltd.

Markets Ahead

Nifty closed in the red today but saw consolidation after its gap-down opening. It was interesting to see the index holding above its immediate support of 17,500 by the closing time. Bank Nifty also managed to closed above 37,000 zone with some power near the closing time.

Keeping aside the auto sector and some stock-specific volatility, the indices closed with consolidation after the gap-down. We can keep watching the international markets for cues. Last week it was the Evergrande issue causing concerns and this week it is the energy crisis in China.

But as you can see, with the excess of money flowing into the market, certain stocks and sectors continue to move up and the correction is not strong. If a huge fall comes, we can expect weak hands in the market to exit and a continuation of the bearish correction phase. But if it is many days of small red candles, we can consider it just as consolidation.

Keep a watch on metal and pharma stocks. Also, IT stocks may bounce from their current supports ahead of Q2 results being published. 

The week has closed as one of the worst for Nifty in the last 5 months. How did it go for you? Let us know in the comments section of the marketfeed app!