Markets close slightly in the red for the second consecutive day.
NIFTY opened the day at 16,225 and did not have much strength. The index kept on being weak even if there were recovery chances. NIFTY closed the day at 16,125, down by 89 points or 0.55%.
BANK NIFTY started the day at 34,250 and shot up. Mostly the index was sideways for the day even after the initial strength. BANK NIFTY ended the day at 34,290, up by 42 points or 0.12%.
Most of the indices were weak today. NIFTY FMCG (-1.3%), NIFTY IT (-1.8%), NIFTY Media (-2.5%), NIFTY Metal (-1.1%), NIFTY Pharma (-1.5%) and NIFTY Realty (-1.2%) moved the most.
All major Asian markets closed in the red. European markets are currently trading in the red.
Today’s Moves
Dr Reddy (+1.6%) saw continued strength after its results announcement last week.
Divis Lab (-6%) closed as Nifty 50 Top Loser, continuing bearishness after announcing its results yesterday. The stock hit a fresh 52-week low.
We have already talked many times about the trendline breakout happening in Kotak Bank (+1.5%). HDFC Bank (+1.1%) also closed in the green.
Ashok Leyland (+3.9%) continued the up move as brokerages remained bullish. Tata Motors (+1%) closed in the green with last hour reversal.
All the stocks from Nifty IT closed in the red led by COFORGE (-3.6%), HCL Tech (-2.6%), INFY (-1.8%), LTI (-3.3%), Mind Tree (-2.5%), and TechM (-3.9%).
Delhivery is listed with a premium of 1.2% at Rs 493/share after its IPO price of Rs 487/share. It closed with good gains at Rs 536, up nearly 10%.
Cement stocks JK Cement (-2.5%), JK Lakshmi (-2.4%), Ramco Cements (-3%) and India Cements (-2.9%) moved down along with Grasim (-3.7%).
Balrampur Chini Mills (-5.7%) reported Q4 consolidated net profit at Rs 240 crores compared to Rs 236 crores last year.
Also, there are reports of export limits on sugar companies. Eid Parry (-2.3%), Renuka Sugar(-6.6%), Dwarikesh Sugar (-5.2%), Dalmia Sugar (-7.6%) and Balrampur Chini Mills (-5.7%) moved down.
ShilpaMed (+10.4%) had a great day after reporting Q4 earnings.
Markets Ahead
Nifty wasn’t giving any directions today and it caused huge volatility. The index fell 140+ pts in the morning and then it recovered 140 pts before 1 pm.
And then a fall of 180 pts. Out of this, nearly 100 pts fall happened in a single 5-min candle, triggered by European markets.
Bank Nifty again tested the downtrend line today and showed weakness.
We can’t expect the market to reverse all of sudden, but we really want it to be stable. India VIX is trading at the highest level since March 17, which indicates volatility in the market.
UK May Services and Manufacturing PMI data show lower than expected numbers.
Yesterday, Nifty Metal fell heavily as a result of imposing export charges and today sugar stocks fell after the news of the export limit. The government said it will be taking many more actions in the coming months to bring inflation down.
What are your plans to protect your capital in such a volatile market? Share your thoughts in the comment section below.
See you on The Stock Market Show tonight at 7 PM.