Today’s Market Summarised

A proper day of correction in Nifty. Markets falling calmly through the day with lower highs and lower lows. After opening at 14,590, Nifty tried to move up but could not. The trend was quite clear around 11 am, when Nifty broke its opening range. Nifty fell consistently to close near the day low at 14,371, down 218 points or 1.5%.

Bank Nifty who traded sideways yesterday, broke down in today’s market. After opening above 32,121, the index fell more than 1000 points over the day, and closed the day at 31,167, down 1,019 points, or 3.17%.

Even after Bank Nifty fell 3%, it was not the worst-performing sector of the day. Metals fell 3.89%, and Auto was up in the bear market 1.43%.

European markets fell today, with the Asian markets also in the red. It is definitely a global phenomenon. 

News Picks

Shares of Bajaj Auto jumped a further 10% today. They had announced a 23% Year-on-Year rise in net profits to Rs 1,560 crores last day. Shares of Eicher(manufacturer of Royal Enfield Bikes) also gained again. Hero MotoCorp gained 3.93%. 

Metals and Banks featured heavily among the top losers of the day. Asian Paints also fell after 3 days of rallies.

Shares of Biocon fell more than 10.9% over the day as net profits of the pharma company fell 19% YoY. Managing Director of the company stepped down following the results announcement. We had talked about Pharma companies maybe declaring disappointing results. Is this another indication?

Indigo Paints IPO is closing today with almost 100x subscription. Have you applied?

Shares of Bandhan Bank closed in the top-losers, down by 7% today, after results disappointed investors. 

Stocks which have over-rallied are the ones which have fell the most. Including SAIL, Bandhan Bank, RBL Bank and Asian Paints.

Markets Ahead

With global markets also correcting, is this the fall everyone has been waiting for? Or will Nifty shoot up like it did all the previous times! This is definitely a question that investors would be having in their head, as they decide on when to enter a stock and when to exit. 

One can never time the market, is what I believe. Even if it enters a sideways trend, or a bearish trend, or even jumps back up to new highs, there are only two things which can make you money. Either get into intelligent trades or invest with systematic investment plans(SIPs) where you keep on buying in dips. All traders need is a trending market, so enjoy it while it’s trending!

I have been buying a few units of Nifty BeEs every time the market falls. Even in intraday falls. Because I believe that the markets will go up in the long term. And you can never know for sure which stock would bounce back faster than others. So in the long term, I will be sitting on a LOT of Nifty BeEs, which would be averaged by every fall in the market. This is something which I follow and do, and might not work for you. But yes, long term and averaging in dips will save me that I am sure. Just food for thought.

Keep watching for global cues, and data and new policies from the US. This will greatly affect our markets in the week ahead. Have a chill weekend, and don’t forget to up your game in between.

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