Today’s Market Summarised 

Nifty crashed today, giving joy to day traders and sleepless nights to investors holding big portfolios. Still the sentiment exists that sooner or later, the index will come back. 

Nifty opened the day at 11,015 today, which was another day of open=high. The index never managed to cross this level even once over the entire day. First support of 10,950 was broken around 10.20 am and 10,890 was broken around 2 pm. The index kept falling the entire day to close at 10,805.55, down 326 points or 2.93%. It was one of the biggest falls of Nifty in 4 months.

Bank Nifty fell even stronger, as is the usual case. The index of banks opened the day at 20,935 and kept falling over the day making lower highs and lower lows. It broke many key supports, as expected, and went into free-fall after 2.45 pm, falling from 20,700 to 20,400. The index closed the day at 20,456, down 721 points or 3.41%. Surprisingly, even this was not the worst performing index today.

Every major index on NSE fell into deep red today, with Nifty IT and Nifty Metal being the worst performing ones. Nifty FMCG was comparatively the least affected index.

Every major global market including European and Asian are in deep red today.

News Picks

Infratel was among the only three gainers in Nifty 50. Shares of the company closed at ₹171.70, up 2.85%. Shares of ZEEL closed at ₹193.50, up 0.89%. It was the last day for both these companies in the benchmark index of NSE, Nifty 50.

IndusInd bank lost another 7.45% of its entire market cap in today’s trade. Trading closed at ₹488.70, to make it the top loser in the Nifty 50 index. 

Apollo Hospital closed the day after making a record high. Trading for the day closed at ₹1,949.90, up 7.27%. The stock has surged more than 20% in the last 2 weeks, after the results for the hospital chain came out.

All stocks of the IT index fell today, with TCS falling the most at 5.45% to close at ₹2,332.90.

The IPO of UTI Asset Management Company has been set to open on 29 Sept with a price band of ₹552 to ₹554.

GAIL has cut gas supplies to many clients after the fire at ONGC plant.

Markets Ahead 

The global sell-off is expected to continue tomorrow. The added volatility of the monthly expiry of futures and options contracts kept the Nifty going further and further down. The European markets opened in red too, to complete the red-filled world map of global markets. It was an amazing day for traders as the markets were clearly one-sided today. 

Swing traders who entered without a strict stop-loss must all be trapped now. For new investors who entered the markets after the March 23rd crash, yes this is what a crash feels like. But will it go up from here? Nifty has its 200-day moving average very closeby. And if global cues turn positive, which may not happen, Nifty will take support there.

The rise in fear of a second wave of COVID (did not even know the first one ended), is said to have caused the market crash globally. The US elections coming up will also cause high volatility in the market, for the next 6 weeks. The bears are back. Rest in peace, Nifty.