Today’s Market Summarised
Nifty and Bank Nifty closed the week above major supports.
NIFTY opened the day near 17,500 at 17,496 with a 40 points gap down. Similar to yesterday, the 17,530 level acted as a strong resistance and the Nifty started falling. Though Nifty took immediate support from 17,430s, it continued to fall till 17,400. From the market movements of this week, we can confirm that the 17,430-17,400 zone has been established as a good support zone for Nifty. From there NIFTY recovered more than 100 points and closed the day at 17,511, down by just 5 pts.
BANK NIFTY opened the day at 37,128, then moved down and even broke the 37k support. It took support from the day high made on October 7, near 36,820. You can watch out for 36,880-36780 in the coming days as a crucial support zone for Bank Nifty. Both Nifty and Bank Nifty falling to the support zone at the same time was a good sign and recovery was easy. Bank Nifty closed at 37,105, up by 23 points or 0.06%.
Nifty Media(2.4%), Nifty PSU Bank(+2.6%), and Nifty Realty(+2.3%) closed with notable gains. All other sectoral indices consolidated.
Major Asian markets closed slightly in the red today. All European markets are trading flat to 0.3% in the red currently.
News Picks
Asian Paints(+3.3%) closed as Nifty 50 top gainer after it refuted all the allegations made by InGovern on related-party transactions yesterday. Other related stocks Berger Paints(+2.7%), Shalimar Paints(+2%), Kansai Nerolac Paints(+0.96%) also moved up.
All the PSU banks closed in the green on media reports saying that Banking Amendment laws will be considered in the current Parliament session. SBIN(+1.2%), Bank India(+4.2%), Canara Bank(+3.3%), Indian bank(+4.4%), Indian Overseas Bank(+5%), J&K bank(+4.5%) and Union Bank(+3.4%) gained in the day.
Nifty Media continued the bull run from yesterday with Dish TV(+4.3%), Hathway(+3.1%), NETWORK18(+18.6%), TV18BRDCST(+11.5%) closing in the green.
IndusInd Bank(-0.17%) closed flat despite RBI’s approval for LIC to raise stake up to 9.99% from the current 4.95%.
IEX(+9.4%) broke out with strong volumes ahead of the listing of bonus shares.
The shares of Rakesh Jhunjhunwala backed Star Health and Allied Insurance Company were listed at Rs 845 vs IPO price of Rs 900, a discount of 6%.
HFCL(-6%) has approved the issue and allotment of equity shares to 21 qualified institutional buyers at the issue price of Rs. 68.75 per equity share for a total of Rs 600 crores. Share prices moved down.
Credit Access(+14.3%) shares gave a big breakout along with IDFC First Bank(+5.2%). Both were bouncing back from important support zones.
Realty stocks were buzzing in the day led by DLF(+5.1%) and IB Real Estate(+5.8%) moving up. Godrej Properties(+2.6%) and Oberoi Realty(+3.3%) also gave breakouts.
Auto stocks mostly remained flat as India’s industry body said sales in November were lowest in 7 years for passenger vehicles, lowest in 11 years for two-wheelers.
Markets Ahead
A bullish close to the overall volatile week. Nifty gained for the second week in a row after November’s heavy fall.
Nifty Media marked its best week since September 26, 9% up from the last week.
The market has been highly volatile but managed to close strong after major vaccine manufacturers said that 3 shots of vaccine can fight Omicron and a new vaccine will be ready in 3 months ‘if required’.
The Nifty touching 16,900 was a little bit alarming, but it recovered 600+ points from there, giving a lot of confidence to investors.
India VIX shot up above the 20 mark on Monday and then corrected 20% from there.
Bank Nifty created a strong green weekly candle after posting frightening red candles in the previous four weeks. ICICI Bank took support near 700 and moved more than 7% up.
Nifty Midcap and Smallcap reported their best week in over a month. This week, all the sectoral indices except Nifty Energy, IT and Pharma gained at least 1%.
In the coming days, we can mark 17,430-17,500 and 36,880-36,780 zones as important support regions for Nifty and Bank Nifty respectively. Nifty(17,500) and Bank Nifty(37,000) closing above crucial levels, give some light in the dark as confusion on Omicron also cools down. But, for the last many days’ global markets have been driven by Omicron news and it may continue.
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