Today’s Market Summarised

We discussed that fireworks will be there in the market today. But what we saw a day of explosions in the market. Nifty was as volatile as it gets in the market.

After opening the day flat at 14,575, Nifty was clearly flashing bearish signals. 14,500 was broken sharply and three was consolidation around 14,400 for a while. Once Nifty lost power, it fell even more to under 14,260 levels. But just after 1-1:30 pm, markets bottomed out and Nifty started to move higher.

With many short positions squared off, Nifty was pushed higher and even got back to 14,500 levels. Nifty fell more than 200 points in 30 minutes to move back down to day low again. Nifty closed the day at 14,324, down 224 points or 1.54%.

Bank Nifty opened the day at 33,449 and fell slowly more than 1,000 points to the day-low. There were a lot of sideways moves in the index before noon. But after 1 pm, the index of banks really went crazy. Between 1:25-1:45 pm, Bank Nifty shot up 750 points. It continued to go up crossing 33,000 and even made a fresh day-high. But the index corrected near close to end the day at 33,006, down just 286 points or 0.86%.

All sectoral indices except Nifty Metal(up 0.02%) closed red in the day. Nifty Media(down 3.06%), Nifty Auto(down 2.76%) and Nifty Realty(down 2.50%) were the worst-performing in the day.

All European markets are running in the red. Surprisingly, Asian markets including Japan’s Nikkei closed flat or in the green.

News Picks

6 stocks closed in the green today from Nifty 50.

According to sources, Dr Reddy’s will be soon given emergency use approval for Sputnik-V(Covid-19 vaccine) by the DGCA. Shares prices recovered and closed in green.

After yesterday’s sharp fall, metal stocks performed relatively good in the day. Promoter Siddeshwari Tradex of JSW Steel revoked pledge of 6 lakh shares on March 22. 

Tata Steel closed up nearly 3% after yesterday’s sharp fall. Today, the company’s board approved the conversion of partly paid-up equity shares into fully paid-up equity shares.

Auto stocks once again came under selling pressure. Maruti, HeroMoto Corp,  Tata Motors, Eicher and Bajaj Auto were down 2.8-4% in the day.

Adani stocks saw once again saw profit booking in the day. All major group stocks were down 3-5%.

Govt has launched auctions for the second tranche of commercial coal mining, with 67 mines under offer. Coal India shares fell more than 3% in the day.

Shares of telecom companies including Vodafone Idea and Bharti Airtel came under selling pressure. Both stocks hit 3-month lows today. TRAI is also examining Vi reporting false subscribers numbers for the month of January.

Shares of smallcap granite processor and exporter Pokarna Ltd went up 12% in the day after announcing starting of operations at its second facility.

Shares of Wabco fell 10% in the day but recovered towards close. This happened as promoters sold shares in the market through Offer for Sale.

Laxmi Organics listed in the market today and closed with a 26% gain from IPO price.

Markets Ahead

A crazy crazy expiry day in the market today. With Nifty flying up and going down 200 points without any effort, many would have surely made handsome returns from the market today. For others, their favourite stocks would have reversed after hitting stoplosses. 

14,500 being taken out is a bearish signal in Nifty. Bank Nifty managing to close above 33,000 despite today’s sharp fall gives some hope for the next day.

But still, the technicals are looking really weak in the market. Nifty PSU Bank was down even 5% in the day before coming back up.

Even though some stocks might go up in the coming few days, if momentum and volume is not sustained, the downward journey would continue.

Nifty Midcap index fell 2% and the smallcap index was down 2.2%.

Hoping to see some general positivity in the April series which begins tomorrow. Another monthly expiry and what a volatile 4 weeks it was. Check out the 1-day charts of Nifty! 14,000 level will be crucial next month. And only any upward journey which crosses 14,750 will be interesting.

Catch you all on The Stock Market Show tonight!