Today’s Market Summarised

Markets consolidated on the second day of the week with Nifty closing nearly flat.

Nifty opened the day with a small gap-up at 17,403 and moved down till yesterday’s low. The index tried to take support but fell to near 17,280 soon. There was a more than 150 points rally to fresh all-time highs by just afternoon. Nifty moved back down near the end and closed at 17,362, down 16 points or 0.09%.

Bank Nifty opened the day at 36,590 and moved down below 36,500 for the first time since crossing it on September 1st. Support was taken near 36,150-36,200 and the index bounced back to fresh day-highs. Bank Nifty also fell near the end and closed the day at 36,468, down 124 points or 0.34%.

Nifty Realty(-2.33%) and Nifty IT(-1.3%) from yesterday saw a correction. Nifty PSU Bank(-1.25%)  also moved down, while all other sectors consolidated.

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

News Picks

HDFC(+2.5%) moved up just afternoon and closed as Nifty’s top-gainer.

Other NBFC stocks including Can Fin Homes(+4%), LIC Housing Finance(+4.7%), IDFC First Bank(+2.7%) and MFSL(+1.8%) also moved up.

With the Union Cabinet likely to consider a relief package for the telecom sector tomorrow. Bharti Airtel(+2.4%), Idea(+13.7%), Indus Tower(+7.9%) and Reliance(+0.6%) moved up.

Stocks with exposure to Idea including IndusInd Bank(+0.94%) and IDFC First Bank(+2.7%) moved up.

ITC tried to move up with global rating agency CLSA retaining a buy. The stock closed 1.17% up with a small breakout.

PSU companies IRCTC(+9.2%), Cochin Shipyard(+2.1%) moved up. Cochin Shipyard was the lowest bidder in a Rs 10,000 crore project for the Indian Navy.

Electronics companies once again moved up in the day. Voltas(+5.7%), IFBIND(+4.4%), Blue Star(+1.4%), Bajaj Electricals(+2.8%), Whirlpool(+3.9%), V-Guard(+3.7%) closed in the green.

Ujjivan(-10%-LC) and Ujjivan Small Finance Bank(-3.5%) continued to crash down after a small break.

Realty stocks moved down after yesterday’s rally. DLF(-2.7%), Oberoi Realty(-3.2%), Godrej Properties(-1.7%), Prestige(-5.8%), Sobha(-5.7%),IBREALEST(-2.1%) closed in the red.

Cabinet to consider PLI scheme for textile industry on Sept 8. Bombay Dyeing(+2.4%),Kitex(+3.4%), Sutlej Textiles(+2.5%), Welspun (+1.8%) moved up in the day.

Jindal Steel(+2.4%) closed in the green after its Australian subsidiary, Wollongong Coal got approval from the Australian government for mining expansion. Also added that Steel sales jumped 6% compared to last month in August.

Panacea Biotech(+9.2%) closed in the green after rolling out the first batch of the Sputnik-V vaccine.

Markets Ahead

HDFC and HDFC Bank kept the market in the day after the morning fall. If Nifty was breaking 17,280 today, it could’ve easily moved down another 100-150 points.

Telecom shares moving up were mostly on hopes of relief packages.

Nifty has formed two consecutive red candles in the daily charts for the first time since August 9th. IT stocks moved down in the day, with Nifty being pulled more than 20 points by Infosys.

The U.S. markets will open tonight after being closed yesterday. Any sudden movements in the global markets may cause volatility in the market tomorrow. And as we know, there could be a Wednesday volatility in the market.

A correction in Nifty is still expected. Today, the index tried to create a fresh all-time high but could not sustain it. Along with the increased VIX, this could be indicating weakness in the market. Bank Nifty has also closed below the 36,500 support zone. 

By tomorrow, we can expect a clear indication. A fall till 17,000 or even lower could be seen, with this view negated if Nifty moves up above 17,500.

Do you expect a similar correction in Nifty? Let me know what you think in the comment section of the marketfeed app.