Today’s Market Summarised

Markets move sideways after morning volatility.

NIFTY opened the day at 17,204 and fell 60 points. This fall was gained back in the first 5 minutes and the index made a quick rebound to day-high. From here, consolidation in a wide zone was seen and NIFTY ended the day at 17,203, down just 9 points or 0.06%.

BANK NIFTY opened the day at 34,982 and fell just like NIFTY. and moved up. The index regained and moved in a 200 point zone till 1 PM. Power was seen after this and Bank Nifty ended the day at 35,063, up by 18 points or 0.05%.

NIFTY IT(+1%) continued its breakout while Realty(-0.97%) and Metal(+1.1%) fell in the day. All other sectoral indices consolidated.

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

News Picks

Energy company NTPC (+3%) is looking for strategic investors for its renewables unit before IPO next year. The stock closed as NIFTY’s top-gainer.

The IT index is continuing to show strength in the market. HCL Tech (+1.9%), Wipro (+1.4%) and TCS (+1%) closed among the top-gainers in NIFTY 50. Coforge (+3.7%) and Mindtree (+1.8%) also gained.

Cipla (+1.8%) closed among the top gainers along with Dr Reddy (+1.4%) which hit a 2-month high.

Reliance (-1.6%) fell after concerns on Mukesh Ambani’s hurry on passing leadership to his children.

RBL Bank (-9.4%) fell heavily once again after Monday’s bearishness.

Chemical and fertiliser stocks gained in the day. FACT (+9.2%), NFL (+2.2%), RCF (+2.3%) moved up. Interestingly, NIFTY 50 company UPL (-1.5%) fell.

Graphite (+20%) and HEG (+12.7%) gave strong breakouts after yesterday’s bullishness.

Krebs Biochemicals (20%) closed at the upper circuit after its board approved allotting 1 crore redeemable non-convertible preference shares worth Rs 100 crores to IPCA Labs.

Kalpataru Power (+5.2%) moved up after board meet on Jan 4th for raising of funds.

Markets Ahead

A very uneventful monthly expiry for the market today. When I saw the last hour fall yesterday, I was pretty sure that today would be a very volatile day in the market.

Zoom out and have a look at the last 3 days of trade in NIFTY. Looks like there is something big coming into the market for the new year.

Interesting to see that the IT index is zooming to all-time highs with only green candles since December 21. There are also many stocks ready to give good breakouts if NIFTY does not see a fall. 

In the chart we shared yesterday, it is clear that the index is taking resistance at its trendline. A failure to break this in the coming days with power may lead to the index falling again. The 200-day moving average is around 16,355 currently.  

A breakout above the 50-day Exponential moving average just above at 17,350 would indicate temporary strength.

How did the last expiry of the year go for you? Let us know in the comments of the marketfeed app.

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