Today’s Market Summarised

Markets see a recovery after a sharp gap-down opening and volatility.

NIFTY opened the day at 17,314 with a big gap-down and tried to move down further. Support was found near 17,200 and from there, a rally of more than 300 points was seen through the day. With the volatility, NIFTY closed the day at 17,503, up by 86 points or 0.50%.

BANK NIFTY opened the day 36,862 with a similar gap-down. However, the index was able to take support at yesterday’s low and moved up from there. BANK NIFTY closed the day at 37,272, up 144 points or 0.39%. 

All sectoral indices closed in the green. NIFTY METAL, NIFTY REALTY and NIFTY PSU BANK moved up the most along with NIFTY MEDIA and NIFTY PHARMA. Others closed slightly in the green.

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

News Picks

JSW Steel(+4%) closed as the top-gainer in NIFTY 50 after Iron ore futures contracts on the Chinese exchange hit the upper circuit. Tata Steel(+2.32%) and Coal India(+3.75%) also featured in the gainers’ list.

All stocks from the Metal index closed in green, led by Vedanta, NMDC, Jindal Steel and SAIL.

Bharti Airtel once again moved up and hit all-time highs after announcing tariff hikes yesterday.

Indusind Bank closed as the top loser in NIFTY 50, now more than 20% down from November’s high. You can read about the allegations against the bank by high-level employees in this article.

Infosys and Asian Paints dragged NIFTY in the day.

Alembic Pharma has received USFDA approval for the solution used to control the symptoms of pulmonary disease.

Most Pharma stocks closed in the green today. Glenmark, Granules, Laurus Labs, STAR and AuroPharma outperformed.

All PSU Banks closed in bright green, with Union Bank, Indian Bank and Bank of Baroda outperforming.

Tamil Nadu Govt signs six MoUs in the data centre space. Adani Enterprises will be investing Rs 2,500 crore, Larsen and Toubro will be investing Rs 2,000 crores. Both stocks closed in green.

SpiceJet CMD Ajay Singh said that the airline has brought back two Boeing Max flights after they were grounded many years back. The rest will start flying in the next 15 to 20 days. Stock prices moved up.

Greaves Cotton‘s e-mobility arm Greaves Electric Mobility on Tuesday announced the opening of its largest EV production facility at Ranipet in Tamil Nadu. The stock moved up.

Moody’s said it expects Reliance to generate sufficient cash flows from operations each year to fund new spending for the company. It also added that backing out of the Aramco deal won’t affect the credit rating of the company.

Stocks in the power sector moved up. NTPC and PowerGrid are featured in the NIFTY 50 gainers list. IEX, Tata Power and Adani Power also moved up.

Markets Ahead

NIFTY appears to have found its bottom for the November month correction. Strong buying came in the index once again at around the 17,250 mark and by 9:30 AM, the index crossed even 17,300 and did not look back.

Most stocks and sectors closed in green today. But do not forget that poor stocks may continue to remain weak for a while. Watch out for stocks which can be added to your portfolio in this dip.

India is taking aggressive measures to bring down crude oil prices. Will be releasing about 50 lakh barrels of crude oil from its emergency stocks.

Anyway, the monthly expiry week has been very interesting in its first two days. India VIX has also gone up to the 18 mark.

BANK NIFTY will have to close strongly above 37,750 to show some bullishness. Reliance has taken support at its high from last year, the level which we discussed yesterday.

Will be very interesting to see who bought shares from the cash market aggressively today. If FIIs have been net buyers it would be a signal of the market bottoming out.

Hope you were able to pick up the stocks of your portfolio in this dip! Happy Tuesday!

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