Today’s Market Summarised

A weekly expiry with heavy selling pressure and lots of volatility!

NIFTY opened flat at 17,943 and started falling. The index tried to bounce back at multiple levels, but kept on seeing selling pressure. In the last hour of trade, there was a more than 100 point rally. Still, NIFTY ended the day at 17,757, down 181 points or 1.01%.

BANK NIFTY opened at 38,153 and traded with volatility. Once the level of 38,000 was broken, it faced trouble finding bullish momentum. Just as we hope on a Thursday, there was heavy selling at 1 PM and a trend reversal at 2 PM. Bank Nifty closed the day at 37,850, down just 190 points or 0.50%.

Most sectoral indices closed in the red led by a fall in NIFTY Pharma (-1.6%), IT (-1.6%) and FMCG (-1.1%).

Asian markets closed mixed today. European markets are all currently trading in the red.

News Picks

PowerGrid (+4.9%) saw institutional buying in the opening hour and towards the close. It ended as NIFTY’s top-gainer of the day.

Bajaj Finserv (-4.5%) saw selling pressure throughout the day, and more selling once its Q3 results were announced. Q3 net profit stood at Rs 1,200 crores, lower than estimates but still higher than last quarter by around 20%.

Along with this, Bajaj Auto (-3.7%) saw selling after reporting a 21.9% YoY fall in its net profit at Rs 1,214 crore for Q3.

Money was pulled out from IT and Pharma stocks with Divislab (-3.4%), Infosys (-2.3%), TCS (-2.2%), Dr Reddy (-2%) and HCL Tech (-2%) closing among the top-losers.

FMCG also continued the downtrend with Godrej CP (-3.7%), Hindustan Unilever (-2%), Nestle (-1%) and Marico (-1.3%) closing well in the red. Hindustan Unilever said that the consumption level has fallen due to inflation but posted a 16% YoY increase in net profit to Rs 2,243 crores after the market closed.

Tata Consumer(+0.8%) stayed in green after Morgan Stanley upgraded the target price of the stock.

With a stunning rally of 50% in the last 15 trading days, Adani Green (+1.4%) is now the 15th largest company in the country with a market cap of over Rs 3 lakh crore. The stock started seeing buying after the Hydrogen power news that we discussed at the end of December.

Markets Ahead

Our markets were affected by the global weakness with rising bond yields and profit booking. 

The breakdown of 18,000 yesterday did indeed indicate bearishness and the trend reversal probably led to more fall today. Do you remember which level we had discussed as a crucial reversal point for NIFTY when it was in the 16,000 ranges?

We had talked about the 50-Day Exponential Average and the level of 17,650 multiple times in December. Today, the index took support at these two exact levels. From here, we can expect an end to this bearish rally and a bounce back towards the budget week.

Similarly, Bank Nifty has taken support at an important level of 37,600. But do remember that if these two levels are broken and closed below in the upcoming sessions, we may see a bearish move.

Noticing the silent rally in Adani stocks ahead of the budget? Someone is taking huge bets on the group hoping for positive news!

How did Thursday trades go for you? Let me know in the comments down below!

See you on The Stock Market Show at 7 PM!