Today’s Market Summarised 

Nifty opened the day with a powerful gap-up above 11,300, against the expectations of every market participant. However, the index started moving down strongly with the very first candle. The market witnessed a huge sell-off today, with Nifty bottoming out near 11,080 at around 9.50am, a crash of more than 200 points in 45 minutes. After rebounding to 11,200 by 10.30am, markets remained very volatile. Big red candles were formed after 1.45am, and markets consolidated to close at 11,153.65, down 96.90 points or 0.86%.

Bank Nifty opened the day near 21,460 and fell along with Nifty strongly till 21,140 at 9.35am. The index went back up to opening levels and consolidated before starting a fresh downward journey near 2pm and crashed till 20,950, creating a fresh low. The index gained a bit towards market close and trading stopped at 21,139.10, down 227 points or -1.07%. 

Nifty Pharma and Nifty IT were the only sectors which gained while all others declined.4 out of the Top 5 gainers in Nifty 50 were from these sectors. In the past one week, Nifty Bank index has fallen more than 6%, compared to Nifty’s 3.3% fall. Nifty Media and Nifty Metal performed the worst today.

Asian markets closed mixed for the day. European markets are currently trading in green, although they are down from day high’s.

News Picks

FinCEN files leak continued to threaten the reputation of companies around the world. More and more news is coming out everyday. Check out our in-depth article to easily understand all about this issue here

Jindal Steel and Power closed the day at ₹170.45, down 2.26%, even after the company clarified on the FinCEN leak allegations. JSPL had said that all transactions entered into by the company were part of routine business activities and all the transactions had proper underlying assets. The stock recovered from a day-low of ₹159.60.

Shares of State Bank of India gained 0.65% to close at ₹187, even when the whole banking sector fell heavily. Nifty PSU Bank index fell nearly 1.4% today. The bank’s board had approved allotment of debentures worth Rs 7,000 crore yesterday, as covered in our morning article.

Shares of CEAT fell to ₹895.05, down 1.98% after the board considered raising funds via NCDs on September 25.

Shares of HSIL (Hindware) flew up to ₹78.15, up 10.46% after the company approved buyback of up to ₹70 crores worth of shares at ₹105 per share.

Shares of Aarti Drugs closed at ₹2,900, up 2% after the company set the record date for bonus issue as October 1. However, trading for the day had opened at ₹2,985.25, and was a clear candidate for short-selling as open was the highest price throughout the day.

Shares of GMM Pfaudler crashed 10% to ₹4,682 after Offer for Sale (OFS) for selling 25.71 lakh shares was set at a floor price set at Rs 3,500/share (33% discount from yesterday’s close). The shares were locked in the lower circuit level throughout the day.

Shares of Indian Oil Company closed at ₹76.20, down 1.93% along with the bearish market. Shares had opened trading for the day in green and fell later. Prices of crude oil has been rising after Saudi Arabia announced production cuts last week and this may increase the margins for IOC in the near future.

Shares of Blue Dart skyrocketed from the day-low of ₹2,431 to close at ₹2,689.95, up 3.63% after the company announced price increase of its courier services effective January 1, 2021. Average shipment price increase is expected to be 9.6% as compared to 2020. 

Insider news has come out stating that TVS Group, and tractor manufacturer Escorts rigged railways tenders for composite brake blocks from 2009-2017 totalling approximately ₹2,000 crore. Watch the stocks’ movements for tomorrow.

TCS has announced the expansion of its partnership with Morrisons, a supermarket chain in the UK. It has signed a 5-year deal with the chain for application management along with data and cyber security services. Shares of the company crossed its 52-week high and closed at ₹2,527, up 2.50% in a bearish market. It featured among the top gainers for the day. A fresh high of ₹2,555 was set by the stock.

Markets Ahead 

Overall the market remained bearish today. Strong support levels were broken throughout the day by Nifty and Bank Nifty, with Nifty closing below a key support of 11,200. Are markets turning bearish, what do you think? I feel that Nifty closing below 11,200 is not a good sign. Short sellers made huge profits during the initial hour, wherein any short sale would have given a profit. Thoughtful swing entries made yesterday had given profits, even in the market dominated by bears.

Keep a close eye on US markets opening today. European markets have opened on a positive note, and let us hope that this positive sentiment is shown in US markets as well. Keep watching this space for more.