Today’s Market Summarised

Nifty continued its fall today, with markets breaking key supports again. After opening the day at 13,836 with a gap-down, Nifty took support at 13,800 and bounced up to create a day high as seen in the chart below. It then went on to consolidate before falling again. The index recovered losses near the end to close at 13,817, down 150 points or 1.07%.

Bank Nifty surprisingly closed in the green today with Axis Bank posting some refreshing results that apparently excited the market. After opening at 29,931 with a big gap-down, the index traded with volatility in a 540 point range within ranges of day-low and yesterday’s low till 3 pm. The index respected 30,000 level for a while then broke out to close at 30,358, up 73 points or 0.24% for the day.

All major indices except Bank Nifty closed in the red today. Realty and IT fell more than 2.2%.

All global markets including European and Asian have closed in the red today. Even all US Markets closed in red yesterday.

News Picks

Shares of Axis Bank closed more than 6% up as markets welcomed the 36% YoY drop in profits. Net Interest Income(NII) however rose 14% and many analysts have seen this as a good indication for long term targets.

Other banking stocks, including SBIN and ICICI Bank, also closed in the green today. The stocks came back from greens after noon hours. However, HDFC Bank closed more than 2.7% down.

Energy stocks including IOC, BPCL, ONGC and GAIL featured in the top-gainers list ahead of rumours of more stake sales in the Union Budget. Reliance fell nearly 1% in the day even though it tried to move up in the morning.

FMCG stocks which jumped yesterday fell sharply today. Hindustan Unilever fell by 3.8%, along with ITC(down 1.92%), McDowells(down 7.83%), UBL(down 1.35%). Shares of Jubilant Foodworks went up 2.67%.

Similarly, IT stocks fell over the day after going up yesterday. Wipro, HCLTech and TCS featured in the top-losers.

Maruti reported a 24% year-on-year rise in net profit to Rs 1,941 crore, with revenue up 13%. The company sold more cars in India and also increased exports. Margins were reduced after an increase in raw material costs like steel. The stock came under heavy profit booking and closed 3.6% down in the day.

Shares of Laurus Labs spiked intraday as the company announced a net profit jump of 271% at Rs 272.8 crore from Rs 73.5 crore. Stock prices have nearly gone up by 4 times since last January.

Markets Ahead

With 5 days of losses in Nifty, Bank Nifty has stayed afloat above 30,000 for the day. And similarly, Nifty has closed above 13,800. This is giving me some hope to the fact that there might a slight confusion in the market if it actually needs to fall more. 

Again, let us watch out for how international markets are performing tonight. It is indeed not a happy sight when seeing every global market in the red. True recovery of smart money may only be seen when FIIs return into the market, and that will happen only when global markets stabilise. 

Again wondering, Domestic Institutional Investors are selling because of mass withdrawal from mutual fund schemes by retailers for pumping it into real estate and what not. So will DIIs start buying in large numbers anytime soon? Or is the market just going to keep on falling with DIIs keeping on ending up as net sellers?

Private Banks pulled back in the final hours of the day. We can discuss what a short squeeze is in the coming days, hopefully in the jargons section. Also hope you have seen what is happening in the Game Stop counter in the US. Nothing related to today’s market, but yea just a fun fact.

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