Today’s Market Summarised

Markets fall for the second straight day right from the beginning.

NIFTY opened the day flat at 18,120. It tested the support at 17,950 and bounced back up twice. Once it was broken, the fall took the index 230 points below the day-high. NIFTY ended the day at 17,938, down 174 points or 0.96%.

BANK NIFTY opened the day at 38,104 and was volatile. The index tried to go up above 38,300 but this was not sustained. After falling more than 550 points from the high, Bank Nifty recovered and ended the day at 38,041, down 169 points or 0.44%.

NIFTY PSU Bank (+2.2%) and Media (+1%) closed with good gains. NIFTY IT (-2.%), FMCG (-1%) and Finserv (-1%) fell more than 1% each.

Asian markets closed mixed today. European markets are all currently trading in the green.

News Picks

After international oil prices hit their highest since 2014, ONGC (+3.9%) shares closed as the top-gainer in NIFTY 50. The stock is near its 52-week high, watch out for a breakout. 

Paint stocks which are dependent on crude oil prices moved down led by Asian Paints (-2.7%). Berger (-1.6%) and Indigo Paints (-2.8%) also moved down. Shalimar Paints (+4.4%) beat the trend and closed in the green after Infra.Market bought a 24% stake in the company.

Other power-related stocks including Coal India (+1.9%), GAIL (+3.5%), Tata Power (+3.9%), Gujarat Gas (+3%), IEX (+2.7%) and more closed with gains.

With Tata Motors(+1.9%) introducing 2 new CNG cars and Rakesh Jhunjhunwala increasing stake, the stock moved up. Maruti (+1.2%) also moved up. Bajaj Auto (+1%) closed at the day-high ahead of its Q3 results.

IT stocks closed in the top-losers with an international selling pressure in the sector. Infosys (-2.8%) and Wipro (-1.9%) fell from NIFTY 50. LTTS (-6.3%), Mphasis (-3.5%), Mindtree (-2.7%) and LTI (-2.5%) also fell for the day.

FMCG stocks also fell with Nestle, Hindustan Unilever and Tata Consumer closing in the top-losers.

Meanwhile, Tata Elxsi (+9.4%) broke out to an all-time high after announcing Q3 results.

Biocon (+5.3%) closed with gains after Morgan Stanley upgraded targets for the stock. Lupin (+1.6%) moved up after signing a partnership agreement with Chinese company Foncoo for introducing products in the country.

ICICI Prudential (-5.6%) fell sharply after announcing their Q3 results yesterday.

All stocks from the PSU Bank index closed in green with expectations before the 2022 Budget. Bank of Baroda (+3.9%), SBIN (+1.7%) and Maha Bank (+4.6%) closed with best gains.

PayTM (-4.2%) shares fell to an all-time low nearly 50% down from its listing price.

Markets Ahead

NASDAQ falling 9% from its January high has started off selling across IT stocks. Indian IT stocks are also responding with Infosys alone pulling down NIFTY by 50 points today.

Tomorrow being the weekly expiry, the current options data might give us an indication of how things might go. After the breakdown today, NIFTY might see a good resistance at the level of 18,000 when trying to move back up.

Keep an eye on crude oil-related stocks including oil marketing companies. As soon as the UP elections are done, local petrol prices may move up and create a buzz in these stocks. Try to add in dips.

Bank Nifty fell below the 38,000 support but showed strength and ended above this level. I am interested to see if we will be able to see some high volatility moves for the weekly expiry tomorrow.

How did the day go for you? Were you able to catch the downtrend moves? Let us know in the comments section of the marketfeed app!

See you on The Stock Market Show at 7 PM!