Markets gain back from deep red with sharp buying towards closing.
NIFTY opened with a gap-down at 16,602 and took resistance at 16,650. Eventually, it moved down more than 200 points from the day-high. But sharp buying in banks and IT stocks helped the index move back above the 16,500 mark. NIFTY closed the day at 16,522, down by 62 points or 0.37%.
BANK NIFTY started the day at 35,407 and shot up. The index started falling just after noon and took support at yesterday’s low. From this support, Bank Nifty gained more than 450 points and ended the day at 35,620, up by 133 points or 0.38%.
NIFTY IT (-1.4%), NIFTY Pharma (-1.2%) and NIFTY Realty (-1.1%) moved down. All other sectors saw general consolidation.
Asian markets closed mixed today. European markets are currently trading flat.
Today’s Moves
JSW Steel (+3.3%) moved up after saying that the company will maintain steel shipments to Europe despite the recent export tax.
Bajaj Auto (-3.7%) fell sharply after the sales data for May fell below expectations.
Hindalco (-2.8%) fell after aluminium prices moved down. National Aluminium (-4%) also moved down.
HDFC Life (+1.3%) and ICICI Prudential (+5%) moved up as LIC’s (-0.11%) poor results give hope to the private sector players.
PNC Infra (+3.7%) moved up after winning large orders worth Rs 1500 crores.
Dela Corp (-2.8%) moved down after news that investor Rakesh Jhunjhunwala sold 25 lakh shares from 27th to 31st May through the open market.
M&M (+1.2%) continued up move after reporting total sales of 53,700 units, 15% higher than estimates.
Markets Ahead
The markets are consolidating after multiple days of recovery.
The Bank Nifty index has hit resistance near its 200-Day Exponential Moving Average but is trying to hold strong. The index was in the green despite NIFTY closing in the red territory.
IT and Pharma stocks were the ones who actually pulled the market down. Looks like they are cooling down after many days of moving up.
The U.S. market futures are trading in the green, and if we take an indication from the closing candles of Bank Nifty, we can expect some strength tomorrow.
But tomorrow is also the first weekly expiry for the June series and market participants are eagerly waiting to gain profits after the crazy month of May. So expect tomorrow’s market to be volatile!
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See you all at the Stock Market Show at 7 PM!