Today’s Market Summarised

Another red candle formed in the daily charts of NIFTY with a fall of more than 1% in BANK NIFTY.

NIFTY opened the day at 18,132 and immediately started falling. The index tried to take support and move up multiple times in the day and at one point reached till near the day-high. A 160-point fall in the last 2 hours led NIFTY to close the day at 17,999, down 110 points or 0.61%.

BANK NIFTY was much weaker in the day. After opening at 38,715 in the morning, the index tried to consolidate around the 38,500 zone. A fall towards the second half of the day made BANK NIFTY close the day at 38,307, down 395 points or 1.02%. 

NIFTY AUTO(+2.4%) moved up in the day and NIFTY IT(+0.49%) consolidated. NIFTY PSU BANK(-2.1%), NIFTY PHARMA(-1.2%) and NIFTY BANK(-1%) fell heavily in a mostly consolidating day.

Asian markets closed mixed in the day. European markets are also trading mixed currently.

News Picks

Auto stocks were highly bullish on the day after Morgan Stanley said chip shortage issues are a thing of the past for the industry. Worst affected stocks by this – Maruti(+7.2%) and M&M(+3.4%) shot up. Tata Motors(+2.6%), Hero Motocorp(+2.1%) and Eicher Motors(+0.97%) also closed in the green.

Greaves Cotton(+10%), Bharat Forge(+3%), Bosch Ltd(+1.8%), Mothersumi(+6.2%), Mahindra CIE(+5.4%) and Varroc Engineering(+6.3%) moved up from the auto ancillaries stocks.

Shree Cements(-3.2%), UltraCements(-2%) closed among the top-losers of NIFTY 50. Ambuja Cements(-2.7%), ACC(-2.7%), Ramco Cements(-2.4%) and others also fell. They moved down after reports that the price hike plans for November have been cancelled. Cement companies also cut prices in Delhi-NCR.

Reliance(-2.3%) saw a sell-off in the day as the issue with Future Group continues. Competition Commission of India to meet Amazon, Future Coupons on January 4.

Coforge(+4.1%) said Anupam Jain to replace Abhinandan Singh as Chief Investor Relations Officer. Last day the company moved up after approving listing ADRs in the U.S. market.

Manappuram(-3.8%) fell in the day, continuing bearishness after reporting earnings over the weekend. Muthoot Finance(-2.9%) fell from all-time highs.

Lodha(+10.2%) moved up after launching its Rs 4,000 crores Qualified Institutional Placement(QIP).

SpiceJet(+9.6%) is giving a breakout in the 1-day charts even as the airline reported a widening of loss for Q2. Shares of Indigo(+0.76%) hit an all-time high again today. 

KNR Construction(+5.3%) gets financial closure letter for the Kerala highway project and shares moved up.

Markets Ahead

Bearishness in the market once again as NIFTY closed below the 18k mark. Even though there was a gap-up, the market fell from there just like yesterday.

Yesterday Foreign Investors were net buyers in the cash market yesterday, but it could have been due to a big investment in PB Infotech from a foreign firm. Otherwise, they continue to be net sellers for the month of November.

The support at 38,500 and 38,350 for BANK NIFTY has been broken. There is a bearish sentiment in the index surely as both private and public banks go into selling more. However, consolidation is expected around the 38,500 zone as indicated by the open interest(OI) data.

It will be interesting to see if this bearishness will continue or the market will go into consolidation mode. What do you think? Let us know in the comments section of the marketfeed app!

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