Today’s Market Summarised 

Nifty opened the day at 11,544 and looked in a mood to consolidate. But after hitting a day-high of 11,570 around noon, the index fell sharply throughout the rest of the day. At 2pm, a sharp fall was seen in the Bank index and Nifty fell along with it. After bottoming out around 11,380, Nifty closed at 11,440.05, down 24.40 points or 0.21%.

5 min chart of Nifty

Bank Nifty performed the worst among all indices. It opened the day at 22,693 and fell continuously throughout the day. Along with the sharp fall around 2pm, Bank Nifty closed the day at 22101, down 378 points or 1.68%.

5 min chart of Bank Nifty

Nifty IT gained the most today along with Nifty Realty. Both the sectors had positive sentiments going for it. HCLTECH had published their mid-quarter update, which boosted the IT sector’s confidence. Maharashtra government has increased ready reckoner rates in the state by an average of 1.74% and hence Realty stocks moved a lot too. 

Asian markets closed the day in green. European markets are mostly trading in red after a green opening, due to profit booking. This may have affected our markets as well.

News Picks

Realty stocks were among the top movers after positive news from the Maharashtra government. Oberoi Realities moved 6.19% to close at ₹402 among other movers.

Deepak Fertilisers closed at ₹168/share, up 4.09% after the company set rights issue to raise funds.

HCLTECH released their mid-quarter update which gave a boost to the entire IT sector. The company went on record to say that it expects better than expected growth in financials during the current quarter. Shares of HCLTECH closed at ₹793, up 9.89% as a result. Most IT stocks including Wipro made fresh 52-week highs. 4 out of the Top 5 Nifty gainers were from the IT index.

Shares of Dilip Buildcon closed at ₹377.35, up 2.54% after the company engaged in talks with large global financial investors to sell seven of its road projects.

Shares of Adani Green closed at the exchange mandated 5% Upper Circuit limit of ₹639.05 after the company posted a ₹21 crore net profit for Q1 FY21. Shares of the company are currently trading at an all-time high.

Shares of UPL closed at  ₹517, up 3.61% after LIC increased its holding in the company.

Mid-caps and smallcaps moved up today. While the Nifty Midcap 100 closed up 2.02%, the Nifty Small Cap 50 moved up 6.21%. This was largely due to the increased enthusiasm in the broader markets after SEBI’s new rule regarding MultiCap Mutual Funds. Marketfeed will be covering the topic in detail soon.

Shares of many small companies were trading in green even after their respective sectors were falling. An example is the share of Federal Bank, closed at  ₹53.35, up 2.99% even after Nifty Bank became the worst performer of the day.

Markets Ahead 

If you did read up about the new regulations on Multicap mutual funds by SEBI, you would know that the jump today in the broader markets was probably out of uninformed retailer’s enthusiasm and the fear of missing out (FOMO). But considerable falls across major large-caps around 2pm, when a block trading window opens, is to be noticed. We would have to wait for after market data, regarding delivery percentage and block deals to get a complete picture on the reasons behind today’s highly volatile markets. 

The reason of sudden downfall in market can also be attributed to many margin positions getting squared off by brokers and retail customers as SEBI’s penalty date for maintaining margins starts from tomorrow, 15 September.

Pfizer CEO went on record to say that the vaccine will be available for Americans before the end of 2020 while India’s Serum Institute CEO said a complete vaccine rollout in India would take 4-5 years. These news bits regarding Covid-19 vaccine would have to be watched, as well. 

So we can say that these small bits of information and misinformation made the market highly volatile today. Hopefully the upcoming days would see Nifty and Bank Nifty respecting their supports and resistances. Keep watching this space for more.