Today’s Market Summarised

NIFTY sees the largest intraday fall in more than 7 months with sell-offs in every index.

NIFTY opened the day flat at 17,805 and crashed nearly 200 points in the first 10 minutes. Till afternoon, the index kept on falling heavily and finally took support at 17,280 level. With a fall of more than 500 points intraday, NIFTY recovered a bit towards closing and ended the day at 17,416, down 348 points or 1.96%.

BANK NIFTY opened the day 38,180 and fell. Just like the rest of the market, there was heavy selling in banks and the index fell nearly 1,500 points after opening. With the last hour rally, BANK NIFTY recovered and closed the day at 37,128, down 847 points or 2.23%. 

All sectoral indices closed in the red. NIFTY PSU BANK(-4.5%), NIFTY REALTY(-4.1%) fell more than 4% each. NIFTY MEDIA(-3.9%) and NIFTY AUTO(-3.1%) also fell heavily along with BANK NIFTY(-2.2%). Metal index(-0.04%) stayed flat after last week’s fall.

Asian markets closed mostly in the green today. European markets are trading flat and slightly in the green currently.

News Picks

Bharti Airtel(+3.8%) beat other members in the market and closed as the top-gainer in NIFTY 50, hitting a fresh all-time high. The rally came after the company announced it is increasing tariffs by up to 25%.

Other industry players including Vodafone Idea(+6.5%) and Airtel’s subsidiary Indus Towers(+2.6%) also rallied on this news.

Asian Paints(+1%) closed among the top-gainers of NIFTY, continuing its rally due to price hikes and a fall in crude oil prices.

Bajaj Finance(-5.7%), a favourite stock among Foreign Institutional Investors fell in the day along with Bajaj Finserv(-4.7%). Both stocks still have had huge gains in the last 6 months.

ONGC(-5%) fell with the fall in international crude oil prices even after announcing a partnership with Saudi Aramco. Other energy players including NTPC(-3.8%), IOC(-3.7%), OIL and BPCL(-2.4%) also fell. Meanwhile, Reliance(-4.4%) fell after calling off a deal with Saudi Aramco.

Tata Motors(-4.6%) fell sharply after being included in the ASM Framework by SEBI which will impose trading restrictions on the volatile stock.

Motherson Sumi(-4%) is in focus as European countries start announcing lockdown with a rise in COVID cases.

Chemical stocks UPL(-3.3%), Navin Fluorine(-7.4%), Deepak Nitrate(-7.1%), Aarti Industries(-6.1%) fell heavily in the day.

All stocks from NIFTY BANK(-2.2%), AUTO(-3.1%), IT(-1.4%), PSU BANK(-4.5%) and REALTY(-4.1%) index closed in the red.

Vedanta(+6%) gained after the company said the Supreme Court has granted permission to the Govt to sell its stake in the company.

Ratings of SBI(-3.4%), Canara Bank(-3.5%) and Bank of Baroda(-5.6%) were assessed by Fitch at ‘BBB-‘ with a negative outlook.

Markets Ahead

A shocking start to the week with NIFTY falling more than 500 points intraday at 2:30 PM! Heavy action of bears pulled down the index to an important demand zone at 17,280-17,320 and NIFTY seems to have taken support there now.

By the end of last week, we had discussed that NIFTY has closed below its 50-day moving average line and is seeing new fresh short positions. And even with global markets in the green, our markets saw a heavy sell-off today. 

Bank Nifty broke its support zone at 37,750 and presented a good shorting opportunity intraday. Reliance is trying to take support at its high from last year, and if this is broken, we can expect further falls.

Now might be a good time to add quality stocks to your portfolio. This looks like a healthy correction in the market allowing us to pick up stocks from their supports. But be sure that the stocks you get into now are either fundamentally strong or showing bullish momentum in this bearish market!

At the end of the day, it was just a less than 2% fall in NIFTY. But keen watchers of technical levels can use the monthly candles to predict the trend in upcoming months. 

In October, a shooting star candle(high selling pressure at the top) was formed in the charts of NIFTY, indicating a trend reversal. Now in November, the low of the October candle is trying to be broken. If it is indeed breaking, then our markets may see a bearish end to the year 2021.

But if Institutional Investors decide to go bullish following global markets, we may see a bounce back from these levels for NIFTY.

Meet you all on The Stock Market Show at 7 PM on YouTube!