Today’s Market Summarised

Nifty consolidates in the morning, with a sharp intraday fall and a v-shaped recovery.

Nifty opened the day at 16,282 and slowly moved up to hit fresh all-time highs at around 16,360. After noon, the index started showing weakness and sharply fell after 1:45 PM. A fall of 120 points was seen in just 15 minutes. By closing, a v-shaped recovery was seen and Nifty closed the day at 16,280, up 21 points or 0.13%.

Bank Nifty opened the day flat at 36,036 and was bullish. The index jumped nearly 300 points in the first 30 minutes, but then got weak. The index also fell sharply after noon, and then tried to recover back. Bank Nifty closed flat at 36,034, up 5 points or 0.01%.

Most sectoral indices closed in the red with just Nifty IT (+0.87%). Nifty Metal, Nifty Media and Nifty Realty fell more than 2% each in the day.

Most Asian markets closed mixed in the day. European markets are all trading flat and mixed as of our market close.

News Picks

Multiple IT stocks closed in the Nifty 50 top-gainers as other sectors moved down. TechM (+2.7%), HCLTech (+1.2%), Wipro (+1.1%) and Infy (+0.8%) closed in the list.

Shree Cement closed 4% down after reporting results yesterday.

Metals fell on the day JSW Steel (-3.3%), Tata Steel (-2.7%) closed in the top-losers segment with a fall in commodity prices around the world. SAIL (-5.1%), National Aluminum (-5.3%), Jindal Steel (-4.2%) also fell sharply.

Tractor manufacturers Escorts (+6.3%) and M&M (+1.4%) moved up in the day even while other stocks from the auto sector mostly closed in the red.

Shares of Kerala based Kalyan Jewellers (-1.2%) fell after the company announced poor results of net loss Rs 51.3 crores in the quarter.

Reliance Industries (+0.5%) is reportedly going to bid Rs 43,885 crores for T-Mobile Netherlands. The stock stayed in the green mostly despite Nifty’s fall.

Motherson Sumi (-3.3%) shares remained weak after the company reported Q1 consolidated net profit at Rs 290 crore against a profit of Rs 700 crores last quarter. The company’s net debt increased to Rs 6,158 crores from Rs 4,807 crores last quarter.

Max Healthcare (+5.5%) moved up after reporting Q1 consolidated net profit of Rs 147 crores, more than double from last quarter.

Manappuram Finance (-4.6%) moved down after reporting a Q1 standalone net profit of Rs 425 crores, down nearly 10% from last quarter. 

CAMS (-1.4%) fell more than 10% intraday but gained back after reporting Q1 consolidated net profit Rs 63.2 crores, down 5% from the last quarter.

Markets Ahead

Markets were moving very calmly in the morning, even with Nifty testing all-time highs. Midcaps and smallcaps continued to stay under pressure.

This was the situation until the market suddenly started falling after noon. I am sure many would have been trapped in the V-shaped recovery in the intraday market.

It was like FIIs started heavily selling when the European markets also fell and DIIs supported the market from further fall. HDFC Bank, HDFC and Reliance also kept the market from falling more heavily.

Midcap and smallcap stocks in your portfolio might be moving down, as they see some profit booking. Even with the volatility, Nifty crossed the level of 16,300 and moved up in the morning. 

Let us see if the intraday volatility continues in the coming days. Nifty and Bank Nifty are still not showing any bearish, just consolidation. Looking forward to more days of calm movements!

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