Today’s Market Summarised

Nifty opened the day with a gap-up at 15,059 and went up. It took resistance at yesterday’s high and then fell. 15,100 has been taken as a resistance for the past 3 days. Moving down, the index tried to take support at 15,050 and went down sharply after noon. It even touched a day-low at 14,925. 

What happened after this was very interesting. Just after 1:30 pm, the index moved nearly 200 points up. It even broke the day high. With almost every sector moving up towards the end, Nifty closed at 15,098, up 142 points or 0.95% for the day.

Bank Nifty saw consolidation after the gap-up at 35,718. The index traded between 35,500 and 36,080 as private banks consolidated after their gap-ups. Bank Nifty closed the day at 35,865, up 589 points or 1.67%.

Nifty Financial Services closed more than 2.24% up in the day followed by Bank Nifty at 1.67%. Nifty Metal was down 2.51%, while Nifty Media and Nifty Realty were down more than 1%.

European markets opened in the red, but are now trading in the green. Asian markets closed mixed for the day. 

News Picks

SBI Life and HDFC Life went up after IRDAI data showing strong growth in the Life Insurance sector for February.

Private banks closed in the green after opening with the gap-up. Even though they could have fallen, they did not. This held Bank Nifty up today. 3 out of top 5 gainers were private banks. 

With NASDAQ futures trading more than 2.3% up, IT stocks tried to fly up towards the end of the day. Tech Mahindra appeared in the top-gainers list.

With BPCL Trust selling up to 7% stake in firm on the open market, shares of BPCL fell more than 4.46% in the day. It had opened with a good gap-down.

With NMDC leaving prices of lump iron ore unchanged, shares of the company fell more than 4.85% in the day.

Shares of Dixon closed more than 2% up after the company set 19th March as the record date for 1:5 stock split. It was up 5% up at one point in the day.

Network TV-18 and subsidiary Hathway went up more 6.94% and 8.21% respectively after seeing good buying. Both companies come under Reliance Industries.

Auto stocks fell towards the end of the day as the Federation of Automobile Dealers Associations(FADA) said vehicle registrations fall by over 13% in February. Tata Motors fell more than 1.88%.

Markets Ahead

What a day again in Nifty. Just when we think that it is a bearish day, the index gained more than 200 points with ease in just 2 hours.

Was hoping for a breakout in the pharma index but it was bearish from the start. IT sector stocks were on fire after NASDAQ futures went up more than 2% after many days of profit booking. To be clear, our IT index was not much affected by this global tech sell-off in the past week.

15,100 again acted as a good resistance today, with Nifty closing below it. But the last-minute rally was surely an amazing catch. Would love to see how the index opens tomorrow, with SGX Nifty already over 15,150 now. 

Finance stocks were also in great form today. Out of the Top Eight gainers in Nifty 50 today, 7 were from Nifty Financial Services. Tech M was the only exception. Life insurance stocks were trending after the positive data coming from the industry. Hoping the outperformance will continue.

Metal stocks slipped after Iron ore futures slipped more than 10% in China’s commodity exchange, Dalian. We could see Tata Steel falling more than 4% today. 

Just a reminder that the weekly expiry is on Wednesday, due to markets taking leave on Mahashivratri on Thursday. Premiums of weekly options will behave as if it is a Thursday.

Catch you all on The Stock Market Show tonight!