Markets crash once again following high U.S. inflation data.
NIFTY opened at 16,037 with a gap-down and fell further. Mostly it was a bearish expiry day with the index falling and falling. A low was taken near the Russian crash’s low. NIFTY ended the day at 15,808, down by 359 points or 2.22%.
BANK NIFTY started the day at 34,329 with a gap-down and fell 1% immediately. After breaking the 34k mark, extra bearishness took over. The 33,300 level was taken as support for today and the index bounced back up. BANK NIFTY ended the day at 33,532, down by 1161 points or 3.35%.
All sectoral indices closed in the red. NIFTY PSU Bank (-5.3%) , NIFTY Metal (-3.7%), NIFTY Bank (-3.3%) and NIFTY Finserv (-3%) closed with big losses.
Asian markets closed in the red. European markets are also trading in the red currently.
Today’s Moves
IOC (+1.3%) to consider the issue of bonus shares on May 17. It was the only stock to close more than 1% in the green from NIFTY.
Adani Ports (-6.1%) continued its fall as investors got scared with the earnings report being pushed by nearly 2 weeks.
IndusInd Bank (-5.7%), Bajaj Finance (-3.6%), Bajaj Finserv (-3.5%) and HDFC Bank (-3.3%) closed as the top losers of the day.
Meanwhile, PNB (-13.6%) crashed after announcing a 66% drop in net profits.
Markets Ahead
On March 9, NIFTY hit the lowest level of the year at 15,673 and we are very close to that range. Support was taken around that zone today.
Falling below that level could be a lot more alarming scenario, but Nifty staying in the 15,600-900 consolidation region is truly a great relief. Just zoom out to this time last year to understand how the index behaved in these levels.
BANK NIFTY was saving the market for many days now. But today, banks also lost patience, and the index fell by 3.3%. The fall in Nifty was a triggering factor for other indices also.
Nearly 80% of Nifty 50 stocks are trading below their 200-Day Exponential Moving Average, most stocks have broken their supports.
Indian Rupee remains weak against the US Dollar, Global markets are falling, no clear updates from Ukraine Russia war, Rising inflation -everything is favouring the bear market! When the market is bearish, reasons are plenty!
The CPI Inflation data will be out soon, and a higher inflation value is expected. If the inflation remains high, it may lead to another interest rate hike in the coming months. This thought is preventing many investors from huge buying in these dips.
Which level of Nifty do you trust the most to deploy 100% of your capital for a long position and why? Share your thoughts in the comments section of the marketfeed app!
See you all today at 7 PM on The Stock Market Show.