Today’s Market Summarised

After falling yesterday in a very eventful expiry, Nifty had an even volatile day today. In fact, volatile would be an understatement. I would go on to call it crazy, just take a look at the chart below. After opening at 13,514 with a strong gap-up, Nifty went up to hit a fresh all-time high near 13,580. Then after trading sideways till afternoon, the index had a free-fall along with the negative opening in European markets. 13,400 was taken as support, and within just 1 hour, Nifty flew back up to close at 13,513, up 35 points or 0.26%.

Bank Nifty followed a very similar pattern to that of Nifty. After opening with a gap-up at 30,589, the index of banks went up to touch its day high very quickly. Along with Nifty’s fall after 1:30 pm, Bank Nifty fell to take support at 30,320 level and then quickly bounced back to close at 30,604, up 94.50 points or 0.31%.

Energy stocks went up the most today, with metals and PSUs right behind. Pharma was the worst performing sector in the day.

European markets are all in red, which caused a negative movement in our markets too. Asian markets closed mixed for the day.

News Picks

Energy stocks outperformed with GAIL, ONGC, Coal India and OIL among the top-gainers. Shares of companies jumped after crude oil price recovery sped up. Morgan Stanley had also upgraded its outlook on ONGC.

PSU Banks continued their rally after taking a pause for 2 days. All stocks in the PSU Banks were trading in green today.

UPL shares continued its fall today. Yesterday shares of the company fell after reports claimed that the promoters were siphoning money off the company. A while ago, auditors of the company’s Mauritius-arm had resigned, which raised a few eye-brows. Shares fell almost 5% from the day opening level.

IT shares fell today, with many among top losers. The dollar has been strengthening against the rupee. This could also be the reason why Pharma fell today.

SpiceJet shares closed up by 5% after the company said it had signed a Memorandum of Understanding with Snowman Logistics for delivery of the Covid-19 vaccine. Snowman Logistics shares closed up by more than 5%, very similar to yesterday.

Shares of Ircon International Ltd., Indian Hume Pipe Co., Gayatri Projects Ltd. and PNC Infratech Ltd. gained on account of various orders secured. Construction companies were in focus today, with major builders giving good movements before the afternoon crash.

Markets Ahead

Even after forming very scary candles last 2 days, NIFTY ended in green for the 6th week in a row. I am not too surprised about this considering how much foreign investors have been pumping in to the markets. Every major sectoral index, except Autos and Metals, ended with gains for the week.

In spite of this, I am very scared of what is coming up in the week ahead. US stimulus hopes have again died off, with no significant progress being made. And also, global markets are also losing their steam after multiple weeks in green. Will their reversal mean our markets are also set for a fall?

Keep an eye out for how the US markets close tonight. And also how Dow Futures are performing by Monday morning.

Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.

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At the recent United Nations Climate Change Conference at Glasgow (COP26), India pledged to achieve net-zero carbon emissions by 2070. The Centre has committed to installing a non-fossil fuel electricity generation capacity of 500 gigawatts (GW) and sourcing 50% of India’s energy requirement from renewable sources by 2030. The government also aims to reduce 1 […]

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