Today’s Market Summarised

A wild day of trading in the market ends with the NIFTY closing flat.

NIFTY opened the day at 17,068 with a small gap-up and crashed down. In less than 10 minutes, a 290 point fall took the index to below 16,800. A strong bounce-back took the index back above the day-high but consolidation was seen afternoon. NIFTY closed the day at 17,054, up by 27 points or 0.16%.

BANK NIFTY opened the day 36,242 with a gap-up and crashed down 900 points. After a quick bounce back, the index moved back into the green but last hour volatility pulled it down. BANK NIFTY closed the day at 35,976, down 49 points or 0.14%. 

NIFTY PSU BANK(-2%), NIFTY MEDIA(-2.2%), NIFTY REALTY(-1.6%) and NIFTY PHARMA(-1%) closed more than 1% in the red. All other sectors saw consolidation.

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

News Picks

Kotak Bank(+2.8%), Bajaj Finance(+1.4%), Bajaj Finserv(+1.2%) and HDFC Bank(+0.76%) closed in the green from the financial sector.

IT stocks mostly closed in the green, led by HCL Tech(+2%), TCS(+1.6%) and WIPRO(+1.4%). 

With international oil prices falling, oil-related companies – BPCL(-2.4%), ONGC(-2%) and IOC(-1.7%) closed among the top losers of NIFTY 50.

LalPathlab(+6.2%), IPCA Labs(+5.1%), Polymed(+5.1%) and Pfizer(+2.7%) closed in green from the healthcare sector. Meanwhile, pharma stocks which rallied last day Granules(-5.6%), Cadila(-3.5%), Glenmark(-3.6%) and SunPharma(-2.1%) fell today.

Defence stocks BEML(+13.1%) and BDL(+6.4%) saw breakouts in the day.

Macrotech Developers(+3.4%) moved up after eyeing entry into the Bangalore market with Rs 3000 crore Capital Expenditure and expects potential sales of about 20,000 crores by 2025-2026.

Shakti Pumps(+6.8%) moved up after saying it will enter in EV Charging, EV motor, EV controller business.

Markets Ahead

What a highly volatile start to the day! NIFTY was flying up and down in the first hour of trade. 

The afternoon trade saw some stability. Still, the overall market has not yet gained stability. The fear of another quick fall exists if Covid becomes a bigger issue.

India has issued new guidelines for international travellers in view of reported cases of the new ‘Omicron’ variant with mandatorily post-arrival Covid-19 testing.

Today’s low indicated a nearly 10% fall from the all-time high for NIFTY. If this is broken in the coming days, we can expect the bearishness to continue. Otherwise, it is safe to assume this level as a good support.

For the time being, European markets are going well in the green and U.S. Futures are also in green. The best strategy would be to restart your systematic investments into good quality stocks and ETFs when the market falls.

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