Today’s Market Summarised

Nifty opened the day with a bearish bias and could not move up no matter how much it tried. Even with Nifty’s heaviest member HDFC Bank moving up sharply, the index could not sustain above 14,450 and slipped to near 14,250 before 11 am. After consolidating and trading sideways, Nifty tried to reclaim 14,400 but fell sharply and closed at 14,281, down 152 points, or 1.06%.

Bank Nifty opened at 32,291 with a gap-up boosted by HDFC Bank alone. But this solo power was not enough and the index could not reclaim 32,500. Soon after, Bank Nifty fell to near 31,800 levels. After consolidating just like Nifty, the index tried to pullback above 32,000 and fell to even lower lows. Bank Nifty closed the day at 31,811, down 435 points or 1.35%.

For the second day in a row, all sectoral indices closed in the red today. Metals fell more than 4%, while FMCG fell the least. 

European markets are currently trading flat, with a negative bias.

News Picks

Shares of UPL shot up more than 7.42% to close at a new all-time high. The company had been recovering from its multiple lows created and closed as the top-gainer in Nifty 50.

HDFC Bank shares touched a fresh all-time high above 1,500 after the great results from the bank even in a period of great distress. The stock corrected and closed 1.12% above.

Reliance shares continued its upward journey of recovery with the stock testing its important 2,000 level. 

Tata Steel fell more than 5.5% after the company’s sales from India operations during October – December fell 4% to 4.66 MT.

Tata Motors also featured in the top-losers section by closing more than 5.5% down. The stock had been on a continuous rally for many days.

Shares of ONGC fell more than 4.6% after the company’s plans to merge subsidiaries MRPL and HPCL got delayed. Meanwhile, shares of HPCL(HindPetro) closed marginally in the green.

Hindalco and Grasim also featured in the top-losers of the day together.

Mostly, all the top-gainers from last month fell when the market corrected today including Tata Motors, Realty stocks and metal stocks.

Markets Ahead

Nifty made another strong red candle in the day, after Friday. Many market watchers would have gotten hopeful when Nifty tried to pullback towards the end of the day, but it went back down even sharply.

Metal stocks falling sharply, was something where I lost hope over. With metals being a key indicator of economic growth, lower sales by Tata Steel did not inject confidence in to the industry.

The US markets are closed today, on account of a domestic holiday there. So Nifty might consolidate for a day if there are not many strong cues in our market. Still would love to see how sharply the institutions have sold today. If FIIs have also started selling heavily, then I would turn cautious.

Stimulus and Biden inauguration are big international cues, for which many investors are probably waiting for.

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