Today’s Market Summarised
A Real Red Day To Remember! War starts in Ukraine and markets react. Everything turns red, except VIX!
NIFTY opened with a huge gap-down of 514 pts at 16,548 and it was a clear downtrend day with a lot of volatility. Multiple supports around 16,450 were tested, but it wasn’t good enough to save the market. NIFTY went near 16,200 after six months and closed at 16,247, down by 815 points or 4.78%.
BANK NIFTY opened at 36,085 with a gap-down of 1306 pts. The index took support at 35,900 after the morning fall. But the real show happened in the last ninety minutes, a fall of 1,000+ pts. Bank Nifty closed at 35,228, down by 2,163 points or 5.79%.
All the indices closed in the red. But Nifty Auto (-6.2%), Bank Nifty (-5.7%), Finserv (-5.1%), Media (-6.9%), Metal (-5.2%), PSU Bank (-8.2%), Realty (-7.1%) took the largest missiles from Russia, fully shattered.
We couldn’t find a single global market in the green. Asian markets mostly closed in the red today. European markets are trading 3-4% down.
News Picks
All the Nifty 50 stocks were in the mood to close in the red. Multiple stocks fell below 200 EMA indicating technical bearishness today (Reliance, Bajaj Finance, Kotak Bank, ICICI Bank and TCS).
From the auto sector Tata Motors (-10.2%), HeroMoto Corp (-6.7%) and M&M (-6.4%) featured in Nifty 50 top losers list. Amara Raja Battery (-10.7%), Ashok Leylamd(-8.3%), Balkrishna Ind (-7.7%) and Exide Ind (-7.5%) also fell.
All the FnO activated stocks closed in the red. SunTeck (+0.19%) was the only stock from the top ten sectors to close in the green.
Media stocks DishTV (-8.5%), Hathway (-8.8%), Nazara (-9%) and TV18BRDCST (-11.2%) moved the most from the segment.
Bank of India (-13.2%), Canara Bank (-9.1%), IOB (-9.6%), J&K Bank (-9.8%), PNB (-14.3%), Union Bank (-9.5%) closed in the… Red? Deep red? No words to express the fall.
Hindalco (-0.2%) and National Aluminum (-3.5%) tried to move up after Aluminum broke the high of 2008 in London.
India Finance Secretary says prepared to handle any crisis due to situation in Ukraine.
Markets Ahead
MOEX and RTS index of Russia fell 40%-50% down after the trading was restarted. Bank of Russia temporarily banned short-selling to stop the fall. Both the indices are currently trading with a cut of 30%.
Fresh bombings, explosions and killings are happening currently in Ukraine. The U.S. Futures and European Markets are continuing to fall. Let us pray for the innocent souls who are trapped in between this purely political move by Russia.
Russia has rejected invitations from countries like Germany for negotiation. The aggression by the country will affect India in 2 major ways. Global crude oil prices indicated by WTI Crude has jumped 8.47% to more than $100/barrel which will affect our country negatively. Also, if we are asked to take a side in case of a World War, it will be disastrous for our economy as well as the global markets.
India VIX hit the highest level since June of 2020 and closed 30% up. NIFTY is at its lowest point since last August when it gave a breakout. The fall of more than 10% from the recent high indicate a technical correction.
Average your portfolios only when the clouds of uncertainty clear in the market. There are also many false reports and misinformation being shared. Please refrain from sharing news from unverified sources.
Let us stay safe and be thankful that we are not directly affected by all this. Also, offer your thoughts and prayers to those affected by all this. Prayers for all our portfolios as well, as indeed we are all stock market participants.
See you at The Stock Market Show at 7 PM!