Today’s Market Summarised
Nifty opened with a huge gap-down at 11,365. After a small up-movement, the index consolidated heavily between 11,380 and 11,410 during the day. European markets opened in green around noon and gave confidence to Nifty, but this did not sustain for long. After making a day-high near 11,450, Nifty fell over 100 points to close at 11,333.85, down 193.60 points or 1.68%. It was Nifty’s first red closing week in the last three weeks.
Bank Nifty was also very weak today. The index opened at 23,124 with a gap-down and formed a huge red candle. After consolidating between 23,060 and 23,110, the index went up to make a day-high near 23,400. When Nifty fell after 1pm, Banks were pulled down as well. Bank Nifty closed at 23,011.50, down 520 points or 2.21%.
All sectoral indices fell today as a reflection of the huge selling in US markets yesterday. Out of these, Nifty Metal (down 3%) and Nifty Realty (down 2.33%) fell the most.
Asian markets closed mostly in red today. European markets are trading in green at the time of Indian market close.
Shares of Vodafone Idea closed at ₹12.15, down 3.19% after the company refuted rumours on investment by Amazon and Verizon. Earlier in May, there were similar reports that Google would invest in the telecom player, but even that was false news. The Board of Idea is meeting today to discuss fundraising plans to help the company recover from its debts.
Credit Access Grameen gave strong movements to close at ₹705.20 up 2.99%. The stock had hit an intraday-high of ₹749. We had talked about the company’s plans to raise funds in our morning article here.
Steel stocks were exceptionally weak today with Tata Steel (₹421.90, down 3.70%) and JSW Steel (₹283.10, down 3.51%) featuring in the top losing stocks of Nifty 50. Jindal Steel fell 5.39% to close at ₹209.70.
Even in the tough market, we identified many great opportunities today. Stocks like Tata Consumer, Indigo, Infratel and many others gave great profits with the live market analysis over at @fundfolio on Telegram.
Auto sector gained during the day after the Union Minister for Heavy Industries remarked that the government is considering concessions and tax cuts for automobiles. Maruti Suzuki Managing Director also said that “We are facing one of the toughest times in history. We eagerly await a GST cut and a scrapping policy”. Maruti Suzuki was the only Nifty 50 stock in green today, closing at ₹7,210, up 1.94%.
Options were plenty today in the market, just like any other day. Many stocks gave early movement but closed in red after the market fell post lunch. Constantly keep your eye out for opportunities. Going ahead, US elections may create a lot of volatility in the International markets, so we have to follow that closely as well. Patience is the key for sustaining in the markets, so don’t get scared by random market crashes without reason. Treat it as buying opportunities, and keep trading with the trend.