Today’s Market Summarised
An incredible reversal in the markets after reports that Russian troops are withdrawing from the Ukraine border.
NIFTY opened at 16,936 with a gap-up. The index fell to near yesterday’s low after failing to break the 17,000 resistance. Eventually, it moved up breaking the day-high and went on a buying mode after breaking 17,100. With serious bullishness and retaking all of yesterday’s fall, NIFTY ended the day at 17,352, up 509 points or 3.03%.
BANK NIFTY opened at 37,028 with a gap-up but failed to stay in the green. The index even fell and broke yesterday’s low before taking support at the important level of 36,650. From the day-low, bullishness was seen in the index just like the rest of the market. Bank Nifty closed the day at 38,170, up 1261 points or 3.42%.
All sectors ended in the green today. NIFTY Auto and NIFTY PSU Bank gained 4% each. All sectors except NIFTY Pharma (+0.79%) closed with more than 2% gains.
Asian markets closed mixed today. European markets are also trading in the green currently.
News Picks
Cipla (-3.4%) opened with a big gap-down and closed as the top loser in NIFTY 50. The company’s promoters are looking to sell up to 2.5% of shares for Rs 1,830 crores.
Auto stocks shot up in the day and closed among the top-gainers of NIFTY 50. Tata Motors (+6.9%), Eicher Motors (+5.9%) and HeroMotoCorp (+4.9%) featured in the list. Ti India (+4.9%), Ashok Leyland (+3.6%) and M&M (+3.5%) were among the other gainers.
Top-losers from yesterday including Shree Cements (+5.6%) and SBI (+4.6%) gained significantly today. However, financial stocks did not gain back as much compared to yesterday’s fall.
Manappuram (-10.7%) crashed again after analysts cut its price targets following poor Q3 results. The stock hit a fresh 52-week low.
China Government tells iron ore companies not to hike prices. We will have to see how this impacts metal stocks when the market stabilises tomorrow.
SpiceJet (+8.8%) shot up after reporting Q3 standalone net profit at Rs 23.2 crores against a loss of Rs 56.9 crores last year. Indigo (+4.7%) also moved up.
Markets Ahead
Yesterday, all supports were broken. Today, all resistances have been broken. What a crazy market!
The news that prompted the up move was Russia saying its southern and western armies are returning to bases. This is seen as a very positive announcement as global markets are scared of a sell-off.
India’s January exports have risen 25.28% compared to last year with imports also showing a similar increase.
Most of the market has gained back from yesterday’s fall. However, HDFC still remains weak in the daily charts.
Reliance, however, has jumped to a 3-week high. Keep an eye out for the stock. NIFTY has the next immediate resistance at 17,500 now. The key-support now is to look for 17,200 for the index. If there are now international cues in the upcoming days, we can expect a good recovery in the midcap markets along with a gradual increase in NIFTY.
How is your portfolio looking after NIFTY gaining back? Is your portfolio back too? Let me know in the comments down below!
See you on The Stock Market Show at 7 PM!