Today’s Market Summarised 

Nifty opened the day with a gap-up today, with the confidence from US markets closed in green. The opening at 11,258 gave investors hope, but this hope was short-lived as Nifty’s open was its highest level throughout the day. From there on, Nifty crashed to create lower lows and bottomed out at 11,024 for the day. This was dangerously close to the key support of 11,000. At around 2 pm, the index reversed to close the day at 11,131.85, down 21.80 points or 0.20%. Nifty fell respecting its technical indications today, on its own terms without looking at the positive cues from global markets. Individual stocks came under heavy selling pressure, dragging the entire index down.

Bank Nifty too had its highest point of the day at open of 21,360. The index bottomed out at 20,817 at around the 2pm mark before regaining confidence and actually managed to close in green for the day at 21,178.50, up 39 points or 0.19%. Still the index closed much below its open price for the day.

Nifty Realty gained the most for the day and was surprisingly followed by Nifty Bank, with 2 of the top 5 gainers in Nifty 50 coming from the banking sector. Most sectoral indices recovered from their respective day lows in the last hour of trade. 

Asian markets closed mixed for the day. But surprisingly, European indices are trading in green for the day, and not just by a bit. FTSE 100, which is the major index of the UK Stock Market is trading up by 2.23% today.

News Picks

Shares of Reliance Industries closed at ₹2,228, up 0.76% from yesterday’s close. The company was in our watchlist after US Private Equity Investor KKR & Co invested Rs 5,500 crore in Reliance Retail in exchange for a 1.28 percent stake, after the entry of Silverlake a few weeks ago. Trading for the stock opened at ₹2,260 and went on to create a high of 2,276, and was keeping Nifty up all by itself. But soon even Motabhai’s Reliance got tired and fell gracefully throughout the day.

With the introduction of new postpaid tariffs by Reliance Jio, shares of Airtel and Vodafone-Idea (Vi) fell sharply throughout the day. While Idea lost more than 10.73% to close at ₹9.15, Airtel was not so far behind and fell 8.16% to ₹432.50. The exact impacts of needs to be analysed and if the market overestimated the loss in revenue, especially for Airtel, there might be a bounce back.

Bharti Infratel looks like it will leave the Nifty 50 index on Thursday with shame, being the top loser for the day. Shares of the company closed at ₹165, down 8.26% for the day. During the day, all of them touched their respective lower circuits at least once.

Shares of State Bank of India crashed to ₹184.15, down 1.10% even when Bank Nifty closed in green. The PSU Bank Index was down 1.5% today, with almost all constituents closing in red. 

Shares of TCS were down strongly today. Trading closed at ₹2,461.05, down 2.45% for the day after the company announced it had deployed an AI-powered software to enable a safe return to work for its employees. Maybe the shift of the company from work-from-home to the traditional office method may have turned off investors. It was among the top gainers of the Nifty 50 yesterday.

Shares of Tata Group stocks remained highly volatile after Shapoorji Pallonji (SP) Group said  it is time to separate from Tata Group, after Tata Sons agreed to buy out their 18% stake in the group. Shares of SW Solar, of the SP group closed at ₹235.70, at the 20% upper circuit level.

Tata Power was among the top gaining F&O listed stocks today after closing at ₹53.90, up 4.76%. The power companyhad signed a power purchase agreement with Apollo Gleneagles Hospitals, Kolkata to commission a solar carport in the city with a big power output target. 

Shares of Hindustan Zinc closed the day at ₹212.85, up 2.23% after the company approved raising funds through sale of debentures. The stock had hit an intraday high of ₹222.25, before settling near the closing price.

Shares of Blue Dart Express Ltd closed the day at ₹2,750, up 2.64% after the company announced it was increasing its average shipment price by around 10% from January. The news came out during late market hours yesterday after which the prices jumped, and the stock was a good candidate for BTST. Share prices are up ₹320 from yesterday’s low.

Shares of Majesco jumped 5% to close at ₹816.65, after Unifi Wealth Management acquired a stake in the company yesterday. Majesco describes their purpose as a helper of insurance companies, who need assistance in modernising. 

Shares of Muthoot Finance featured among the top gaining F&O stocks after brokerage Motilal Oswal said it is bullish on the gold financing space. Muthoot Finance closed the day at ₹1,054.95, up 3.96% in a bearish market. Is Manappuram going to rally in the coming days? Do watch out.

Subscription for IPOs closing today, both CAMS and Chemcon have been oversubscribed and are likely to list with major gains.

Markets Ahead 

As we discussed in the morning article, 11,000 turned out to be the key support for Nifty today. The levels of 11,200 were easily broken during early trade and the index fell even further, with the least care for anything. Surprisingly, Banking stocks traded in green today, with support from the private sector. We will have to wait for the FII/DII data to understand more, since they move the market mostly. DIIs were net buyers yesterday. The benchmark index of NSE, Nifty 50, has been closing in red for the last 5 trading days. Will we see the index crossing 11,200, or will it break the key support of 11,000 and reach 10,800? Keep watching this space for more.