Today’s Market Summarised

Another expiry day, another day of surprises. Nifty opened the day at a fresh high at 14,734, tracking bullishness from global markets. After trading in a 50-point range till after 2 pm, Nifty fell sharply by almost 250 points from day high. The index recovered a bit to close at 14,590, down 54 points or 0.37%. The correction was sharp and quick.

Bank Nifty too was trading sideways after opening at 32,746. The index traded within a 190-point range and fell along with all indices. Bank Nifty took support at 32,000 and closed the day at 32,186, down 356 points or 1.10% for the day.

All major sectoral indices closed in the red, with minor losses. But don’t forget that this was despite the fairly large gap-up across the market.

European markets are currently trading mostly flat. Asian markets had closed majorly in the green. Let’s see how this could’ve helped you predict today’s fall.

News Picks

If you actually look at Nifty’s chart the day’s high was touched exactly in the 1:30 pm candle. Just after this, major indices started falling and the sharp fall came after 2 pm. 1:30 pm is when European markets open, and if you track them, their fall could’ve maybe been an indication to an extent.

But Nifty’s fall was definitely sharper than those. The index was consolidating near all-time highs and was definitely expected to give a good move. And when it started falling, it was nothing but a domino(or as a house of cards) collapsing. Every single stock across the market would have fallen today.

The Bajaj Twins, BajFinance and BajFinserv shot up in the market today, after declaring their results yesterday. Both of the stocks appeared in the top gainers of the day.

Shares of Bajaj Auto also jumped up after the company announced a 23% Year-on-Year rise in net profits to Rs 1,560 crores. Shares of Eicher(manufacturer of Royal Enfield Bikes) also featured on the top gainer’s list on the expectation of a similar result.

Reliance shares continued upward rally, after moving up steadily through the day. With the farm laws being paused, and Reliance-Future Group deal getting approved, bullishness has returned to the stock.

Tata Motors moved up again, touching a day-high of Rs 299. The stock has been rallying like anything, and we had discussed any and all possible reasons for this rally.

With India’s gas production projected to rise, shares of ONGC fell sharply to close 4.2% down. The only reason coming into my mind for this sharp fall is because I have probably invested in the stock. Distribution companies also fell. GAIL fell by over 3%. IGL fell by 5%. MGL fell by 4%. The top 5 losers of the day from Nifty 50 were government-owned companies.

Shares of Bandhan Bank closed in the top-losers, down by 4%, after the bank reported below than expected results but mainly due to higher provisions.

Asian Paints reported a 62% YoY jump in net profits to Rs 1,265 crore, and thereby justifying the amazing rally of stocks in the last many months. Indigo Paints IPO is closing tomorrow. Have you applied yet?

Markets Ahead

A major fire broke out in Serum Institute of India’s building, but there has been no impact on the vaccines. In fact, the building was still under construction, and not being currently even used. What a false alarm! Did this aid the fall in Nifty today?

US markets headed higher as Biden took oath as US President, along with Vice President Kamala Harris. All went well, and this definitely boosted market sentiments.

That was another day of volatile markets done. I guess we can expect a similar, if not more volatile day on Feb 1st, when the Union Budget is to be announced.

With European markets consolidating after the fall, let us keep watching international markets for cues.

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