Today’s Market Summarised

NIFTY ends in red again for the worst week in 2 months.

NIFTY opened with a gap-down at 17,637 and fell. The index saw selling as it opened under the important support of 17,650 but then bounced back. After 1 PM, there was a heavy fall of nearly 200 points which again saw a bounce towards the close. NIFTY closed the day at 17,617, down 140 points or 0.79%

BANK NIFTY opened at 37,576 and fell. On multiple occasions, the index kept on taking support at 37,220. In the last 30 minutes, the index jumped from the day-low back to the day-high. Bank Nifty closed the day at 37,574, down just 276 points or 0.73%.

NIFTY MEDIA (-3.4%), PSU BANK (-3%) and REALTY (-2.3%) saw heavy selling on the day. NIFTY Pharma (-1.5%) and IT (-1.6%)  continued their fall.

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

News Picks

Bajaj-Auto (+3.3%) bounced back after yesterday’s fall to close in the top-gainers. Hero MotoCorp (+1.5%) and Maruti (+1.9%) also closed in the top-gainers again.

FMCG stocks also reversed today. Hindustan Unilever (+2.8%) gained after announcing growth in Q3 net profits. Nestle India (+1.2%) also moved up. 

Bajaj Finserv (-5.3%) closed as the top-loser in NIFTY 50 again after yesterday’s results announcement.

Polycab (-6.3%) fell sharply after announcing Q3 consolidated net profit at Rs 247 crores, down 5% YoY.

Kajaria Ceramics (-5.9%) fell after reporting net profits of Rs 122 crores, with no growth from last year.

Markets Ahead

Markets saw selling to close the week more than 2% in the red. NIFTY has fallen nearly 600 points since opening on Wednesday. 

I expected global markets to bounce back from yesterday’s heavy fall. Even the U.S. markets were in the green after opening yesterday but they couldn’t hold gains and fell.  The trend in the international markets pushed down ours as well.

The buying in the last 30 minutes was unbelievable, especially in Bank Nifty which went from day-low to day-high. Still, the volume-weighted average of the last 30 minutes of trade is used and hence this did not reflect in the final closing prices. 

Even with the index opening and closing the day at the exact same price, it is now under the support of 17,650 due to the gap-down. The 50-day EMA is also broken. So do watch out for bearishness and keep in mind that FIIs are heavily selling in the cash market again. 

Also, don’t forget that the upcoming Budget might cause volatility. Even though key levels are broken, I would prefer to stay away from taking a bearish bet on the market. 

What do you think? Will our markets turn bearish in the last week of January? Let us know in the comments of the marketfeed app!

See you on The Stock Market Show at 7 PM!