Today’s Market Summarised

Nifty opened the day flat at 14,597 and was looking weak from the start. After taking a clear resistance at yesterday’s high, the index started its downward journey. 14,500 was broken soon, and just after 1:30 pm, Nifty witnessed a fairly large fall. The index fell almost 180 points in 40 minutes. Nifty recovered losses a bit, to close at 14,433, down 161 points or 1.11% for the day.

Bank Nifty maintained and respected its important levels. After opening at 32,485, the index started falling slowly just like Nifty. Even though it fell after 1:30 pm, the fall was not as dramatic as that of Nifty. Bank Nifty recovered after taking good support at 32,000, and closed at 32,246, down 272 points or 0.84% for the day.

All major sectoral indices closed in the red today. Out of them, Nifty IT and Nifty Realty fell the most. The auto sector was the “best performing”, even though it was in red.

All the European indices are currently trading in red, at the time of Indian market close.

News Picks

Tata Motors jumped by more than another 6% today. The stock hit a 28-month high today. Even though it denied, the partnership news with Tesla, the stock has been rallying. You can check out this article to read the possible reasons for the rally.

Shares of Bharti Airtel gained 3.81% to close at over 602 after the bullishness in the stock continued. Morgan Stanley is said to increase its weightage in the company soon. Also, Softbank and Hughes Network Systems have today invested in the company’s OneWeb platform.

PVR reported a net quarterly loss of Rs 49.1 crore against a profit of Rs 36.26 crore in the corresponding quarter a year ago. Probably with the same surprise as me, that the company only made such a loss despite theatres only starting to open up, share prices closed almost 2.5% above.

Shares of GAIL went down more than 3.8% today, after falling abruptly after noon. This happened as rumours of Tata Consumer replacing the company in Nifty 50 got stronger. The company also announced a buyback at Rs 150/share worth Rs 1046.3 crore, and a dividend of Rs 2.5/share.

Share prices of SAIL closed up more than 4%, after the Offer for Sale of Retailers was also oversubscribed, which showed great demand for the stock.

HCLTech reported a 31% YoY increase in Q3 net profits to Rs 3,982 crore due to better margin number. Share prices fell close to 3.69% as profit booking kicked in after 2 weeks of rally in the IT sector. TechM and Wipro also featured in the top-losers of the day.

Shares of Vodafone Idea went up by 10.98% after the company argued errors in the AGR dues. If allowed self-assessment of the dues, Vi may save a lot in annual payments to the Government of India. 

Shares of IDFC First Bank went up by more than 4.76% after the company announced its revolutionary new credit card scheme which we talked about in the pre-market report.

Markets Ahead

What an amazing week for Nifty, once again. Yes yes, I know today formed a red-candle in the daily charts, but the index ended another week with profits.

PSU Banks Index went up more than 5.9% in the week followed by Auto Index at 4.5%. Metals fell almost 2.3% for this week.

Yes, I know that the index went down, but do note that any bull market will always see corrections, maybe even large ones. I feel that even if the index falls further, it will go up eventually. Joe Biden swearing in around January 20 will be a big event, with top-sources in the FBI warning of attacks of government institutions. There is also a large Stimulus in the making, and with Democrats in Senate, House, and the White House, it could be very easily passed.

So have a chill weekend, and take care of your health. Spend some time with your family, and enjoy the little things in life.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.