Today’s Market Summarised

Markets crashing in the morning, and flying back up in the afternoon.

Nifty opened the day with a small gap-up at 15,767 and crashed down. Just in the first 5-minute candle, Nifty fell more than 100 points. Then by 10:45 AM, the market bottomed out around 15,510, more than 250 points down from the open.

From here, all indices slowly regained back with volatility. Till the last minute, there was strength in the recovery. Nifty closed the day at 15,709, down 37 points or 0.24%.

Bank Nifty opened at 34,841 and fell sharply. The index followed a very similar pattern to Nifty, taking support at 34,100 at around the same time that Nifty also reversed. A strong move back up, of nearly 450 points from the day-low was seen. Bank Nifty closed the day at 34,532, down 264 points or 0.76%.

Nifty Metal closed 1.22% up, while Nifty PSU Bank moved down more than 1.55%. All other sectors consolidated.

Asian markets closed mixed. European markets are all trading in the green as of our market close.

News Picks

Bharti Airtel shot up more than 5% to close as Nifty 50’s top-gainer. The company raised their entry-level prepaid plans from Rs 49 to Rs 79. Other telecom stocks including Idea(-0.6%) and Reliance(-0.86%) jumped up at the same time but closed in the red. IndusTower gained 4%.

Tata Steel(+2.5%), JSW Steel(+1.5%) and Coal India(+1.1%) featured in the top-gainers list. Metals are continuing their rally as we expected. SAIL(+3.1%), MOIL(+3%), APL Apollo(+2.3%) and VEDL(+1.75%) also closed in the green. 

SBI Life(+2.5%) also continued its rally and moved up. The stock is up more than 10% in the last 5 trading days.

IndusInd Bank(+1.7%) closed in the green after reporting a doubling of its net profit to Rs 1,016 crore in the June 2021 quarter, on a dip in provisioning and a surge in other income. ICICI Bank(+1.1%) also closed in the green, while Kotak Bank(-2.6%) saw heavy selling.

Maruti Suzuki (-1%) moved down after reporting Q1 consolidated net profit at Rs 475 crores vs a profit of Rs 1,241 crores last quarter. Tata Motors(-2.3%) and M&M(-2.2%) also closed in the red.

Pharma stocks had a mixed day with Cipla(-2.5%), Dr Reddy(-2.3%) and CadilaHC(-3.5%) featuring in the top-losers list, while DivisLab(+2%), Torrent Pharma(+2.7%) and AuroPharma(+1%) moved up.

Intellect(-10.5%) fell sharply after reporting Q1 results fell below estimates. Consolidated net profit came at Rs 73.7 crores, down 10% QoQ.

Yesterday’s gainers Tata Coffee(-8.5%) and CCL(-7.5%) crashed down intraday after the Q1 results of Tata was announced. Q1 consolidated net profit reported at Rs 28.6 crores, down 33% from Rs 43 crores of last quarter. 

The Centre may reduce the 25% vaccine quota for the private sector. Apollo Hospitals closed 1.6% down.

NSDL allows entries of Albula, Cresta Fund & APMS on its website. These were the FII entities linked to the Adani scandal. Adani stocks tried to move up after the news but only Adani Green(+3.4%), Adani Trans(+4.4%) and Adani Power(+2.4%) closed well in the green.

Welspun India(+5.36%) moved up after reporting Q1 consolidated net profit at Rs 218 crores, 65% up QoQ.

Mahindra Lifespaces(+4.5%) approved bonus issue of equity shares in the ratio of 2:1.

Markets Ahead

It was a very volatile and crazy day in the market. Nifty fell more points in the first 5 minutes than the total it had moved on Monday. India VIX, also known as the fear index, was up by more than 20% at one point.

At 15,630, a lot of stoplosses were probably triggered as Nifty fell heavily. And then, 15,500 was taken as support. Domestic Institutions probably bought up a lot of shares at the dip today.

Similarly, the 34,400 zone was a good support zone for Bank Nifty. Once this was broken, another sharp fall was seen. And on the way back, once this zone was broken, Bank Nifty shot back up!

As such, there was no real reason for the bearishness in the market. IMF had cut India’s GDP forecast sharply yesterday, along with that of many other countries. Japanese markets closed more than 1.5% in the red.

But once European markets opened and started moving up, Nifty found strength. Somehow the index crawled up to above 15,700 levels by market close, 200 points higher from the day-low.

Tomorrow is the monthly expiry and we may see some volatility in the market. The week till now has already been dramatic, so let’s trade safe and not get trapped in such volatile moves! Nifty has closed in the red for all three days of this week, let’s see if there is a reversal coming up or more fall.

Catch you all at The Stock Market Show sharp at 6:30 PM!