Today’s Market Summarised

A day of correction in the market with Asian and European markets moving down.

Nifty opened the day with a gap-up at 17,867 and consolidated. The index tried to take support at yesterday’s high multiple times and bounce back. Bears took over once Nifty fell below 17,780 and the index fell more than 160 points from there. Nifty closed the day at 17,646, down 176 points or 0.99%.

Bank Nifty opened the day at 37,784 and moved up. The index even moved up till 38,100 just afternoon, but fell along with the rest of the market. The index tried to bounce back from yesterday’s highs but fell further from there. Bank Nifty closed the day at 37,521, down 221 points or 0.58%.

Most sectoral indices closed in the red today. NIFTY METAL(-2.9%), NIFTY PHARMA(-1.8%), NIFTY IT(-1.3%), NIFTY AUTO(-1.1%) and NIFTY REALTY(-1.6%) closed more than 1% in the red.

Asian markets closed mostly in the red today. European markets are all trading in the red currently.

News Picks

ONGC(+2.7%) once again closed as Nifty’s top-gainer stock, benefitting from the increase in gas prices. BPCL(+0.75%) and IOC(+0.15%) also closed slightly in the green as Nifty 50’s top-gainers.

Smart money found its way to FMCG stocks, helping Tata Consumer(+2.4%) and Britannia(+1.4%) to close in the green.

Metal stocks closed among the top-losers of Nifty after moving up earlier in the week. Hindalco(-3.9%), JSW Steel(-2.9%) and Tata Steel(-2.8%) closed in the red. Even Coal India(-2.5%) closed in the top-losers list.

Other metal stocks including National Aluminium(-5.6%), Vedanta(-3.9%) and SAIL(-3%) also saw profit booking.

Railway-related stocks IRCTC(+7.1%) and Railtel(+4.1%) closed significantly in the green today. Can keep a watch on IRFC shares as they are giving a breakout on the daily charts.

Shares of Bosch(+11.6%) gave a breakout to 52-week highs even as the rest of the market stayed bearish.

Fertilizer and chemical stocks continued to gain with Deepak Nitrate(+8.1%), Tata Chem(+3.3%), UPL(+1.7%), and Navin Fluorine(+1.3%) among the top-gainers in F&O stocks.

SEBI is considering allowing options on the Multi Commodities Index. MCX(+1.9%) gained sharply after the news.

Cabinet has given approval for 7 mega textile parks. Many textile stocks closed with gains. Page Industries(+0.05%), Trident(+5%-UC), Indo Count(+5%), KPR Mills(+1.8%) and more gained.

The Dept of Revenue has selected CAMS(+0.34%) as the central record-keeping agency for the National Pension Scheme.

Europe’s natural gas futures climbed 22% to a fresh all-time high.

India issues notification on 100% telecom FDI via Auto Route. Can expect some buzz in Vodafone Idea and Indus Towers once the market stabilises.

Markets Ahead

The gas price inflation and energy shortage are causing a panic in the global markets. Investors are now fearing widespread damage to the economies around the world and are panic selling government bonds. 

The increasing bond yields in the U.S. to their highest point since June can also be watched. 

Nifty has moved down with a broad sell-off in the market. Most heavyweights including Reliance, Infosys, TCS, and ICICI Bank closed with losses. However, HDFC Bank held strong and closed more than 1% up.

The 17,660 support in Nifty that we discussed yesterday has been broken. The last-minute panic selling caused a fall in the market and European markets continue to fall. 

Global markets were starting to recover from the Evergrande Issue and now inflationary fears and power crunch issues are pulling it down again.

Bank Nifty is still holding above the 37,400 support and this level can be watched tomorrow. Expecting a pullback in Nifty back to 17,700 and above if U.S. markets stabilise tonight. Otherwise, we might see the index giving a scare to investors and move down near 17,500 levels.

Tomorrow also being the weekly expiry, the first in the 3rd quarter of the year, we can expect some volatile movements. If key supports or resistances are broken and sustained, you can expect larger moves to that side.

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