Today’s Market Summarised
A volatile Wednesday ends with the market closing at the day-high.
NIFTY opened at 17,371 with a gap-up of more than 100 points. The index traded with volatility in a 65 point range till 2 PM. But just around this time, the index crossed the consolidation zone and moved up. NIFTY ended the day at 17,463, up 197 points or 1.14%.
BANK NIFTY opened at 38,208 and shot up more than 300 points in half an hour. After this, the index moved sideways before giving a breakout near the end of the day. Bank Nifty closed the day at 38,610, up 581 points or 1.53%.
All sectoral indices except NIFTY PSU Bank (-0.62%) closed in green. NIFTY Auto (+2.1%), NIFTY METAL (+1.8%), NIFTY MEDIA (+1.8%) and Bank Nifty (+1.5%) closed with good gains.
Asian markets closed in the green today. European markets are also trading in the green currently.
News Picks
Coal India (+5.4%) closed as the top-gainer in NIFTY 50 with an indication of a trend reversal. The stock is at a 3-month high.
Maruti (+4%) also hit a multi-year high on the day. Bajaj Auto (+3%) and Hero MotoCorp (+2.1%) also closed in the top-gainers list from the auto sector.
BSE (+7.5%) gave a breakout after reporting good Q3 numbers.
Adani Wilmar (+20%) hit upper circuit, continuing bullishness after listing on the market yesterday.
Aluminium Futures on MCX hit a 4-month high. Hindalco (+2.9%) and National Aluminium (+4.6%) moved up.
Federal Bank (+3.1%), IndusInd Bank (+3.1%) and HDFC Bank (+2.4%) gave the best moves from the banking sector. Only PNB (-0.95%) from Bank Nifty closed in the red.
BASF India (-6.1%) fell sharply after reporting slightly lower Q3 net profits.
Bharti Airtel (+1.4%) moved up after reporting their Q3 results yesterday where revenue increased and profits moved down. The company said it may hike tariffs further.
Markets Ahead
AMFI Data for Mutual Funds indicated that net equity inflows have fallen to Rs 14,552.3 crores in December vs Rs 24,990 crores last year. Meanwhile, January SIP inflows showed an increase of nearly 2% month-on-month, coming in at Rs 11,516.6 crore.
Banks have shown a pullback from the trendline we discussed yesterday. The Bank index may taking resistance next at 38,860 with the support at 38,500.
With the afternoon bullishness Nifty formed a green candle in the daily charts after four trading sessions.
Nifty IT is consolidating near the major zone around 35,000. You can watch out for this region in the coming days. Even though steel stocks remained sleepy, Nifty Metal continued its bullishness with Coal India and Hindalco taking charge.
Reliance needs to break 2400 region to witness strong buying.
NIFTY has now shown some strength and has cemented the 17k mark as a short term support. The 50-day EMA at 17,544 might act as a resistance tomorrow after the probable gap-up.
The RBI will announce the outcome of the Monetary Policy Meeting tomorrow. Tomorrow being the weekly expiry, one can expect some level of volatility. Interest rates are expected to remain unchanged.
Do you think the worst is over for NIFTY? Is this a slight weakness before the rally? Let us know in the comments down below!
See you on The Stock Market Show at 7PM!