Gap-up fails to save the market as major stocks once again close in the red.
NIFTY opened the day at 16,197 with a gap-up and started falling. The index tried to take support at multiple zones but ended up moving down again. A low was taken near the 16k level and NIFTY closed the day at 16,025, down by 99 points or 0.62%.
BANK NIFTY started the day at 34,492 and shot up. The index traded in the green most of the day while other indices crashed. BANK NIFTY ended the day at 34,339, up by 49 points or 0.14%.
Only NIFTY BANK (+0.14%) and NIFTY FINSERV (+0.68%) closed slightly in the green. NIFTY IT (-3.3%), NIFTY Realty (-2.8%) and NIFTY MEDIA (-2.%) closed well in the red.
Asian markets closed mixed in the day. European markets are currently trading in the green.
Today’s Moves
As NTPC (+3.9%) targets an 86% increase in outputs from its coal mines, the stock shot up.
Life insurance stocks HDFC Life (+2.9%), SBI Life (+2.1%) and ICICI Prudential Life (+2.6%) moved up.
Kotak Bank (+1.3%) hit its highest level since 2nd February as it continued its breakout.
Asian Paints (-8%) led the fall for painting stocks as crude oil prices stayed strong and Grasim (-1.9%) doubled its capital expenditure plan for paints to Rs 10,000 crores.
Berger Paint (-7.2%), Indigo Paints (-2.8%), Shalimar Paints (-3.3%) also moved down.
Sugar stocks crashed on the day after sugar mills are now required to seek Government approval for exports from next week. Major stocks to fall were Balrampur Chini (-8.8%), Shree Renuka (-6.6%) and Triveni Engineering (-7.7%).
Markets Ahead
There was positivity in the market from financial stocks. Even when NIFTY was near the day-low, the BANK NIFTY index was at its highest in the day.
Kotak Bank has been exceptional and moved up today. It is at its highest level since February 2nd, even when Bank Nifty is down 5,000+ points from that day.
Even though NIFTY has been trading in a 600-point zone for the last 2 weeks, the volatility index(VIX) is really high.
It is because the major event we have to watch is Fed Minutes for the 4th May meeting that will be out tonight.
Even though recession fears continue, the market is trying to remain stable and sideways.
Are you expecting a fall from here or a market which tricks everyone and shoots up?
See you all at The Stock Market Show tonight at 7 PM.
