Today’s Market Summarised
Strong recovery after the gap-down opening. 16,150 and 16,400 are back in the game.
NIFTY opened the week with another gap-down at 16,227, down by 183 pts or 1.1%. We are very familiar with the strength of 16,150 support, and it happened again today. After taking support at 16,141, Nifty recovered 250+ pts to test the super resistance at 16,400. NIFTY ended the day at 16,301, down by 109 points or 0.67%.
BANK NIFTY started the day at 34,091, down by 499 pts or 1.4%. With the help of 33,900 support, the index managed to cut its opening losses. BANK NIFTY ended the day at 34,275, down by 315 points or 0.91%.
All sectoral indices except Nifty IT (+0.05%) closed in the red. Nifty Media (-2.6%), Nifty PSU Bank (-2.3%), and Nifty Metal (-2%) closed more than 2% down.
Asian markets except China closed in deep red. European markets are down 1.5% -2% currently.
Today’s Moves
PowerGrid (+2.8%) continued the recent breakout after it took support from 200 EMA in February.
INFY (+1.7%) closed in the green after triggering the morning recovery in Nifty.
HCL Tech (+2.4%) has acquired Swiss company Confinale AG for Rs 408 crores.
Reliance (-3.9%) saw sharp profit booking after announcing its results during the weekend.
Campus Activewear listed at Rs 360/share in pre-open on NSE vs the issue price of Rs 292/share.
Can Fin Homes (-5.1%) and its promoter Canara Bank (-8.2%) moved down as a result of media reports saying “Reserve Bank of India is likely to investigate into the books of accounts of CanFin Homes”.
UPL (-1.1%) reported it’s better than the estimated Q4 consolidated net profit at Rs 1,390 crores against Rs 1,063 crores last year.
BASF (+8.4%) rocketed after posting a Q4 standalone net profit at Rs 150 crores compared to Rs 55.8 crores last year.
Central Bank Of India (-1.9%) marked a Q4 standalone net profit of Rs 310 crores vs a loss of Rs 1349 crores last year.
Markets Ahead
Today, INFY made a strong green candle and it can be added to our watchlist. A good volume in the daily candle will make it interesting.
Putin’s speech at Russia’s Victory Day parade today hurt the market and fueled the 150+ pts fall from 16,400. He concluded his speech without declaring mobilization or declaring war as rumoured.
We need strong up movements in Bank Nifty and Nifty IT if the profit booking in Reliance continues. If that does not happen, we may see another fresh low of the month. However, Nifty respecting technicals 16,400 and 16,150 levels is a very good thing as it will have lesser dependence on rumours and news.
The rupee is currently at a record low against US Dollar, which will have a negative impact on our Forex reserves.
Keep an eye out for weakness in our markets along with international markets as days go by. Implications of the interest rate hikes and inflation are also something to watch out for!
See you all today at 7 PM on The Stock Market Show.
