Today’s Market Summarised

Another wild day in the market with bears kicking in for the last hour of trade.

NIFTY opened the day at 17,075 and shot up. Resistance was found at 17,325 and a fall even quicker than the jump was seen. After taking support at 17k and slowly moving up, the last-hour fall saw NIFTY closing the day at 16,983, down by 70 points or 0.41%.

BANK NIFTY opened the day 36,024 and moved up. Just like NIFTY, a fall was seen from the top to even below 36k. After consolidation, BANK NIFTY closed the day at 35,695, down 281 points or 0.78%. 

NIFTY METAL(-1.9%) and NIFTY AUTO(-0.94%) closed significantly in the red. All other sectoral indices saw consolidation.

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

News Picks

PowerGrid(+3.2%) continued its bullishness from last week and closed as the top-gainer in NIFTY 50. It is now taking resistance at the 52-week high zone. 

Other power stocks including REC Ltd(+4.3%) and Torrent Power(+3.3%) in green.

Titan(+2.2%) and SBI Life(+2.1%) also bounced back and closed in green. Most stocks in the top-gainers of NIFTY 50 were taking support at important zones.

Even though the iron ore prices in China managed to recover, the domestic metal stocks were by NMDC(+1.5%) reducing the price of iron ore lumps and fines. Tata Steel(-3.9%), JSW Steel(-2.7%) and Hindalco(-1.7%) closed in the red from NIFTY 50.

Adani Ports(-2.6%) fell after new scrutiny on the drug-related case. The Finance Ministry said today that statement has been recorded from the company over the seizure of nearly 3,000-kg of heroin from Gujarat’s Mundra Port.

After a rally in BEML(-1.4%) and BDL(+0.47%) yesterday, defence PSUs BHEL(+1.9%) and BEL(+3.3%) closed in the green.

Go Fashions IPO listed with a 90% listing gain today and closed slightly in the red.

Dilip Buildcon(+7.6%) moved up after winning an order worth Rs 636 crores.

Devyani International(+6.5%) jumped after Jefferies initiated coverage with BUY for a target of Rs 240/share. Read more about the company here

Markets Ahead

Another highly volatile start to the day! The first two hours of trade sees NIFTY moving up by 300 points and then down by even more.

In the morning, all European and U.S. Futures were in the green when NIFTY rallied. Suddenly there was panic in the market after Moderna CEO said vaccine effectiveness will likely drop against the Omicron variant. He had said the same yesterday as well. 

Anyway, as soon as global futures fell, NIFTY also saw a fall from there. Quite predictable in the way things turned out. Towards closing time, European markets opening and falling could have triggered a fresh fall in the market.

Keep a watch on Bank Nifty stocks which are 12-25% down from their October and November levels. More interestingly, defensive FMCG stocks including Hindustan Unilever are down 20%.

There is potential to pick up good quality stocks at decent valuations at this level. Make sure to spread out your investments across a few weeks as the market sees heavy fund flows.

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