Today’s market summarised

  • Nifty broke down today after opening and trading in green till after 1.30 pm. The index had been consolidating the entire week and finally decided to give a move, but not in the direction investors were hoping for. The index opened at 11,346 and quickly made a day high of 11,366 before starting its downward journey. After posting a day low of 11,112, Nifty recovered a bit to close at 11,181, down 1.05% and 119 points.

  • Nifty Bank (-2.33%) and Nifty Auto (-2.56%) lead the bear sentiment today by falling heavily after 1 pm.

  • Nifty Bank fell 516.95 points (-2.33%) today to 21679.4 after making a day high of 22,334.95. Banks and other financial institutions were among the top losers is Nifty today.

  • The fall in Nifty and its constituents came right after the red opening of European markets. European markets were dragged down by bears as rising fears of massive economic slowdowns took over the market. A trader with a good eye would have changed his levels after watching the bearish European market open around 1pm. Global sentiments do affect our market very much and today was the best example. Hope our readers will include this in their future analysis too.

News Picks

  • Nifty Pharma gained an amazing 1.42% today while the general markets were in freefall. Out of all the stocks in the pharma index, Lupin jumped 8.97% to ₹1,014. Shares of the company are trading above the ₹1,000 mark for the first time since November 2017. The market offers opportunities for everyone even during big falls!

  • Nifty Metal gained 1.06% throughout the day and JSW Steel gained 2.57% to close as Nifty’s top gainer. Prices of the share last closed at ₹262.25.

  • Eicher Motors lost 7.15% of its entire value today as share prices crashed to ₹20,124. Earlier this week, share prices had jumped up due to the announcement of a 1-for-10 stock split.

  • Tata Motors fell 4.8% to ₹124.85 along with the rest of the auto industry. The shares of the company had been rallying for the past 2 weeks after data showed the increasing market share of Tata in the country.

  • 7 out of top 10 losers in Nifty were from the automobile sector or financial sector. Interestingly, steel stocks rose even though major consumers of steel in the country are the automobile industry.

Markets ahead

It was a one-off day for Nifty. After breaking a major trendline support around 31st July (check 1Day charts), Nifty has been struggling to recover and go past it. Along with global factors, the index was dragged down today breaking many important support levels along the way. The index now stands near the levels of last Friday. Traders need not worry, as even a bearish market will have a lot of opportunities for short selling. Investors can identify major supports and add more quantity when they see shares showing signs of respecting those levels.