Today’s Market Summarised
Markets pulled down by financials for a third day in a row after a gap-down.
NIFTY opened at 17,482 and tried to move up. This move was quickly rejected and the index fell more than 400 points from the day-high. It found support near 17,120 and moved back up towards the day-closing. NIFTY ended the day at 17,213, down 302 points or 1.73%.
BANK NIFTY opened at 38,684 and tested the day-high multiple times. Once it broke the 38,500 mark, the index fell more than 700 points easily. After taking support at the level of 37,800, Bank Nifty closed the day at 37,995, down 793 points or 2.05%.
Only NIFTY PSU Bank(+0.92%) closed in the green today while all other sectors fell. NIFTY Finserv(-2.57%), NIFTY Bank(-2.05%) and NIFTY FMCG(-1.98%) saw heavy selling.
Asian markets closed mixed in the day. European markets are also trading mixed currently.
News Picks
PowerGrid(+1.88%) closed as the top-gainer in NIFTY 50 along with ONGC ahead of its results on Wednesday.
Tata Consumer(-3.95%) continued to see profit booking after its results announcement last week. Britannia, ITC, Godrej CP and Hindustan Unilever also closed in the red from the FMCG sector.
HDFC Bank, HDFC Life and HDFC closed in the top-losers list of NIFTY 50 by falling more than 3% each. Kotak Bank and Bajaj Twins are also featured in the list.
Lupin has now fallen more than 10% in 2 days after its disappointing Q3 results. All NIFTY Pharma stocks except Biocon(+1.95%) closed in the red.
Indigo(+9.91%) and Bank of Baroda(+6%) shot up after their Q3 results announcements on Friday evening. GNFC jumped 13% after profits more than doubled year on year.
NIFTY Metal closed flat with Ratnamani(+4%), Hindustan Copper(+2.72%) and Vedanta(+2.53%) closing in green and SAIL(-2.52%) falling.
Sugar stocks continued to rally after the positive budget announcement. Balrampur Chini, Eid Parry, Shri Renuka and Triveni jumped between 2-7% in the day.
Markets Ahead
NIFTY once again fell after breaking the 50-day moving average on Friday. The index is now once again close to the 17,000 mark.
Volatility index jumped back up as the market fell more than 300 points, in its worst days in two weeks.
The HDFC Twins alone pulled down NIFTY by 110 points today. With this, HDFC is only 3-4% away from its 52-week low, which if broken may give a more bearish move. HDFC Life is already at its 52-week low.
The SBI results failed to push Bank Nifty up even while it hit a small all-time high and took rejection. Bank Nifty is still outside its breakout triangle we discussed last week, and will only be considered weak if it breaks today’s low. And for Nifty, since the level of 17,250 is broken, we can watch the 16,950-17,000 zone as the next support.
The metals index is showing temporary strength. Keep an eye out for ONGC which is trading near its 2 and a half year high. Hoping that the market will stabilise soon along with our portfolios!
See you on The Stock Market Show at 7PM!
