Today’s Market Summarised

Selling spree in the market continues with Nifty falling once again.

After opening the day with a gap-up at 14,837, Nifty consolidated near 14,800 levels for quite some time. Was going to call it a day of consolidation when we noticed the US Bond Yields slowly going up. From there, the market was in a mood for free-fall. Nifty fell nearly 400 points from the day high and 217 points from yesterday’s low. After gaining a bit, Nifty closed the day at 14,557, down 163 points or 1.11%.

Bank Nifty opened the day with a gap-up at 34,594, and was not looking too strong despite trying to move up. From the day-high, the index of banks fell more than 1,100 points. You would be surprised to see where it took support. Open the one hour chart and check how beautiful technical levels can be. Bank Nifty closed the day at 33,856, down 372 points or 1.09%.

Nifty IT(down 3.09%) and Pharma(down 2.32%) were the top losing sectors in the day. FMCG, Auto and Metal closed flat in the day.

Major Asian markets are all closed in green. European markets are all trading in green presently.

News Picks

Global Investment firm TPG pumps in $200 Million(~Rs 1,400 crore) in Airtel Africa’s mobile money business. The company is looking to list the money business on the markets in next 4 years. Airtel gained more than 2.5% in the last 30 minutes of the day.

ABB Power closes flat as the company says will grow faster than the market. Remarked that Railways is a good opportunity and that will be focussing on infrastructure for Electric Vehicles.

ITC continued its top-gainer position on Nifty, going up 3.35%. The company had announced yesterday that it would be splitting business verticals to ‘unlock value for investors’.

With Nithin Gadkari announcing the vehicle scrappage policy in Lok Sabha, auto stocks tried to move up in the day. Nifty Auto closed 0.15% down. 5 out of 10 Top Gainer’s in Nifty 50 were auto stocks with small margins.

Bajaj Auto gained 2.66% in a bearish market as the company announced changes to its dividend distribution policy to manage surplus funds.

Dixon Tech was up more than 11% intraday after the 1:5 stock split increased trading volumes in the counter. 

With dollar reaching back to 72-levels against the rupee, IT and Pharma stocks were especially weak in the day. Top Losers in the day were filled with companies from the sectors.

Markets Ahead

Understand the irony that ITC was nearly 4% up when Nifty fell. The stock was not moving for the past many months.

Even though the market opened with a gap-up due to US Fed not changing rates, there was a weakness in the index. We had talked about technicals being weak in the index. Nifty searching for a reason to fall found the US Treasury Bond Yields shooting up and conveniently crashed! Literally crashed with clear indications. High conviction trades in the index was possible today, hopefully, many of you capitalised on it.

Nifty closed above 14,500 for the day and it looks like that the support will be respected for tomorrow as well. The weekly expiry closed with big movements in the index. Hoping that it will move back up, but will be watching if 14,500 is taken out. We had talked about how 14,500 might be a possible sight soon. There we had also talked about 14,000 also. Bank Nifty under 33,000 also might see more fall so watching a reversal from this range.

Interestingly, global markets don’t seem bothered by the Bond Yields increasing anymore. But maybe the high FII investment in our markets is the reason. Still wondering how FIIs were net buyers yesterday.

Weekly targets are achieved and may not trade tomorrow if the market is consolidating!

Catch you all on The Stock Market Show tonight!