Today’s Market Summarised

Nifty fell sharply today after opening, to mark the end of a 10-day bull run which saw Nifty rallying from 11,100s to 12,000 levels. Money has been made, now the sentiments have changed and Dalal Street has a new King, the bear.

The bears are back, and how so strongly. Nifty has erased the gains of the last 6 days, all that money just vanished into thin air, or more so into the pockets of derivatives traders. Nifty opened at 12,025 with a gap-up, above the supposed holy grail mark of 12,000. Not even for a minute did the index cross the opening level throughout the whole day. 

After falling and falling, led by the bearish sentiments in Nifty IT, the benchmark index of NSE had settled down comfortably near 11,880 around noon. Then the European markets opened, and the mood all changed. With the global indices suddenly down 2% and falling even further, Nifty was only mildly bearish. Bank Nifty suddenly woke up, lashing out like a son whose father was insulted. So the index of major banks in India fell 900 points within 3 hours to take Nifty down as well, and stood proudly in front of its broken father. At market close, Nifty stands at 11,680.35, down 290.70 points or 2.43% along with its European peers.

Bank Nifty had a great opening, keeping Nifty somewhat stable while the IT sector was pulling the benchmark index down. And as you all know, Bank Nifty doesn’t like any competition at all. So after opening at 23,920 and crossing the 24,000 mark, Bank Nifty closed the day near the day low at 23,051, down 823 points or 3.45%.

Nifty Bank crashed the most today. All major sector indices closed in red today, with Nifty Metal being the least affected. Interestingly, JSW Steel from Nifty Metal was one of the few gainers in Nifty 50 today.

All major global markets, including Asian and European markets are trading in red. Nifty looks ready to fall tomorrow, as well. 

News Picks

Shares of Tata Motors spiked just for a short while, after ace investor Rakesh Jhunjhunwala’s name appeared in September shareholding with 1.29% stake. Later, the stock price fell along with the market to close at Rs 126.55, down 3.18%. Also, Tata Motors and Maruti are offering discounts of up to Rs 15,000 to dealers, signalling something wrong with the industry. 

Shares of Infosys fell 5.66% from the opening price to close at Rs 1,113.25, down 2.09%. The company had announced great Q2 results yesterday, but fell victim to the same profit booking that brought down Wipro.

Shares of Airtel fell below many key supports to close at Rs 398.90, down 3.47%. The stock has been having bearish sentiment for a while now. Will it reverse, or will it be the next Idea?

MINDTREE Q2 results announced with net profit at Rs 253.7 crore, above street estimates. Interestingly, it was the top-losing stock today. Shares closed at Rs 1,438.00, down 7.34%.

There is no point talking about more specific stocks today. As you may have noticed, more or less every stock closed in red today.

Markets Ahead

The most interesting news that turned around all global sentiments was that of the British Government announcing tougher coronavirus restrictions for London. With such an important global city going under another round of lockdowns, we can see that the fear of Covid-19 is far from over. Tomorrow’s prospects aren’t not looking great for Nifty. The real question would probably be which stock to short.

Let us keep the hope of 12,000 for another week, or maybe for another month. Time to start firefighting to get my holdings P&L under control.

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