Today’s Market Summarised

Today was a very decisive day for Nifty. The index was at fresh all-time highs at yesterday’s close and was getting unconfident of its own achievements. So when US markets closed in red, Nifty too was expected to fall.

But the story was a bit more complicated than that. Thursday being the weekly expiry, it was expected to be a volatile session. After opening with a gap-down at 12,846, Nifty made multiple green candles to strongly move up till near 12,960 at 10 am. The index then consolidated in a 60-point range for 3 hours, it even made a fresh all-time high. But just when the European markets opened at 1:30 pm, Nifty started falling heavily. And then, there was no looking back, The index closed more than 200 points from the day-high at 12,771.70, down 166.55 points, or -1.29%.

Bank Nifty opened the day with a huge gap-down at 29,343. But the index of banks quickly moved up, pushing Nifty up along with it. But the index failed to cross yesterday’s high even after this quick run. It lost steam and gradually consolidated till 1:30 pm. After this point, the index fell heavily to close at 28,903.05, down 846 points or 2.85%. It was the worst-performing sector of the day.

Nifty Bank was the worst performing sectoral indice today. Out of the banks, PSU Banks performed worse than private banks today. Nifty FMCG was the only index even mildly in green. Nifty Financial Services was also heavily down.

Asian markets closed in flat to red today. European markets are currently trading in green.

News Picks

Only CoForge and TCS managed to close in green from Nifty IT. Yesterday, TCS shareholders have approved up to Rs 16,000 crore share buyback plan at Rs 3,000/share.

Hero MotoCorp jumped in early trade to become the top gainer of the day in the morning. But the stock shook of its gains to close flat. The early jump came after the company sold more than 14 lakh units of motorcycles and scooters in retail sales during the festive season.

PowerGrid was the top gainer from today and managed to close at Rs 189.80, up 2.37%. It was closely followed by NTPC, which closed 1.7% up at Rs 89.80.

Tata Steel continued its bullishness, despite Nifty and metal index being down. The reasons for the uptrend have been discussed multiple times. The stock closed at Rs 523.60, up 1.24%.

Titan comes up with business update for festive season with good traction across all its businesses. Shares closed at Rs 1,292.45, up 0.96%.

Shares of banks closed in red, SBI led the charge today. Axis Bank, ICICI Bank and Bajaj Finance also closely followed suit in the top losers segment.

FMCG stocks also managed to stay in green today, after yesterday’s sharp fall.

Markets Ahead

Nifty finally fell, after many days of bullishness. Expiry day warriors would have easily made some quick bucks from the high volatility. Banks were the worst performing, with financial services also falling heavily. The bull rally was clearly not going to sustain, and a correction was imminent. If you ask me, why did Nifty fall today, I would only have one answer for you and that would be profit booking. Not just profit booking from retailers like you and me, but also from institutional investors. You can check out the FII/DII data today evening, where you would be able to clearly see for how much institutional investors sold in the markets today.

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