Today’s Market Summarised

A highly volatile day in the market with sharp movements to both sides and finally ending in the red.

NIFTY opened the day at 17,833 with a small gap-down and crashed down. After a fall of more than 200 points, the index went back up even above the day-high jumping 300 points in less than 2 hours. This gain was not sustained and the market fell slowly throughout the day back to near day-lows. NIFTY closed the day at 17,671, down 185 points or 1.04%.

BANK NIFTY opened the day at 39,440 and crashed down 1,000 points in 10 minutes. The index took support at 38,400 and nearly went up till 39,800, a rally of more than 1,350 points in less than two hours. From the day-high, another fall of 1,000 points was seen followed by a 500 points jump.

BANK NIFTY closed the day at 39,115, down by 393 points or 1%. 

NIFTY PSU BANK(+1.45%) was the only index to gain significantly after yesterdays fall. NIFTY IT(-1.45%), FIN NIFTY(-1%) and BANK NIFTY(-1%) closed in the red.

Asian markets mostly closed in the red today. European markets are also trading in the red currently.

News Picks

Cement stocks closed among NIFTY 50’s top-gainers of the day. Ultra Cement(+2.5%) and Shree Cements(+1.5%) gained continuing bullishness in the last two days. Shree Cements reported Q2 net profits at Rs 580 crores, jumping 5% YoY.

Others including India Cements(+2.4%), ACC(+2%), Ambuja Cements(+3.7%), Ramco Cement(+4.1%), JK Cement(+3.3%), Orient Cement(+1.4%) also gained.

Dr Reddy’s(+1.9%) reported Q2 net profit at Rs 990 crores vs Rs 380 crores last quarter. The numbers were much better than the estimate of Rs 715 crores.

Maruti(+1.5%), Cipla(+1.4%) and UPL(+1.4%) gained in the day, despite the market falling.

IT stocks closed lower with TechM(-3.6%) and Infosys(-2.1%) leading the fall. Coforge(-3.2%), Wipro(-1.5%) and Mphasis(-1%) also fell.

Kotak Bank(-3.2%), IndusInd Bank(-3%), Axis Bank(-2.1%) and HDFC(-1.9%) closed among the top-losers from the financial sector.

IRCTC fell heavily in the morning, hitting multiple lower circuits but gained back and closed 7.42% in the red. The reason was that the service charge collected on ticket bookings would now have to be shared with the railways but later reversed that order.

RBL Bank(-10.2%) crashed after disappointing Q2 net profit numbers.

Canara Bank(+9.7%) jumped sharply to hit a multi-year high even when the rest of the market was falling with heavy buying. MD of the Bank had said that there is no stress on the retail loan book and that growth is being seen.

Shares of Indigo(+8.8%) fell nearly 7% intraday but closed strongly in the green after announcing the 7th consecutive quarter of net losses.

Alcohol stocks closed in green with United Spirits(+6.1%), UBL(+1.6%), Globus Spirits(+0.5%) and GM Breweries(+4.5%) closing in the green. Radico(-1.1%) closed in red.

Gujarat Gas(+4.7%) and Lupin(+4.6%) closed in the green after brokerage upgrades. Voltas(+4.2%) moved up after reporting good Q2 results.

Markets Ahead

Markets once again moved down, failing to hold the morning gains. A clear sign of weakness in the day falling even after going to green in the morning.

All sectors got hit hard in the week. One of the worst weeks’ in the market in many months. It was the worst week for NIFTY since February.

NIFTY is supposed to continue the weakness in the coming days if 17,600 is broken on the lower side. 

Once again, NIFTY Midcap and Smallcap did not fall as much as the general market.

Interestingly, even with the volatility, INDIA VIX fell today. So we can expect some consolidation if 17,500-17,600 is taken as support.

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