Today’s Market Summarised
Markets crash down after gap-down opening and manage to recover slightly in the afternoon.
NIFTY opened the day at 16,840 with a big gap-down and fell sharply. It tried to consolidate around 16,580 but failed to hold the level. With more selling, the index touched a 4-month low near 16,400. There was buying in the afternoon and NIFTY closed the day at 16,614, down 371 points or 2.18%.
BANK NIFTY opened the day at 35,226 with a gap-down and fell more than 400 points in the first 5 minutes. From the opening level, the index fell 1,200 points to take support at the level of 34k. With buying after 1 PM, Bank Nifty closed the day at 34,439, down by 1178 points or 3.31%.
All sectoral indices closed in the red today. NIFTY REALTY(-4.9%), PSU Bank(-4.4%) and Media(-3.9%) closed 4% down. NIFTY Bank(-3.3%), Metal(-3.7%) and Finserv(-2.9%) also fell heavily.
Most Asian markets closed in the red today. All European markets are trading in the red currently.
News Picks
Only 3 stocks closed in the green from NIFTY 50 today. Cipla(+3.9%) closed in the green after receiving approval of Lanreotide injection from USFDA. Other pharma stocks including APL Ltd(+2.1%), Glenmark(+1.7%) and AuroPharma(+1%) closed in green.
Hindustan Unilever(+1.7%) fell to a 9-month low of Rs 2,200 and bounced back up. HUL raised the prices of certain products by 7-10%.
BPCL(-6.4%), Tata Steel(-5.2%) and Tata Motors(-4.9%) fell on the day and closed among top-losers of the day. Interestingly, Iron ore on the Singapore and China market is up 6% even though NIFTY Metal fell.
IndusInd Bank(-4.1%) stock fell to an 8-month low and closed among the top-losers. SBI(-3.9%), AU BANK(-9.8%), Bandhan Bank(-7.6%) and RBL Bank(-6.6%) closed as the worst from Bank Nifty.
Competition Commission of India suspended Amazon’s deal with Future Group, Future Retail closed 20% up in Upper Circuit.
Markets Ahead
Another bearish day in the market where NIFTY was down more than 400 points intraday. But after 1 PM there was recovery and NIFTY closed more than 200 points up from the day-low.
The strong support indicated by options data was at 17,000. Once the market opened with a big gap-down below this, it triggered panic and NIFTY fell again. Even though 16,500 was expected to be a support, the index bounced back from below that.
There are also rumours that Long Term Capital Gains will be non-taxable. This might cause big moves in the market creating more buying.
On the Covid front, media reports say that India has detected 161 Omicron cases in 12 states, however not a single patient is in a serious condition, all are mild.
As we discussed on Friday, a move below 16,800 will indicate more bearishness for the entire market. Will the green near the closing time indicate support? What do you think? Let us know what you think in the comments section of the marketfeed app!
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