Today’s Market Summarised
Monday sees a slight weak opening for the market even as Banks close in green.
NIFTY opened at 17,209 with a gap-down and went down. It found support at 17,080 very quickly and jumped up back nearly 300 points by 1 PM. The afternoon saw profit booking in the index which pulled it down. NIFTY closed the day at 17,206, down 69 points or 0.40%.
BANK NIFTY opened at 37,481 with a gap-down and moved down. The index bounced back before breaking reaching the support of 37,000. Even with the strength after taking support, the index of banks could not break the 38,000 resistance. Bank Nifty closed the day at 37,685, up 86 points or 0.23%.
NIFTY MEDIA and NIFTY METAL fell more than 2% in the day. NIFTY Pharma, PSU Bank and Realty fell more than 1% each.
Asian markets closed mostly in the red today. European markets are trading flat currently.
News Picks
IT stocks closed mixed for the day. While Wipro(+1.5%) and Infosys(+1.39%) closed among the top-gainers of NIFTY 50, TCS(-1.96%) fell down.
Coal India(-3.55%) closed as the top-loser in NIFTY 50 after factoring in the Rs 5/share dividend.
Other NIFTY Metal stocks including Hindalco(-3.32%), Hindustan Copper(-4.79%), National Aluminium(-3%) and JSW Steel(-1.5%) moved down.
Hero Motocorp(-2.10%) fell on the day after factoring in Rs 60/share dividend.
Indiabulls Housing(-9.86%) fell more than 13% from the day-high after news that the Enforcement Directorate is conducting searches at its Mumbai and Delhi offices.
Sister companies IB Real Estate(-15%) and Dhani(-20%) crashed down.
INDIGO(-1.42%) recovered after its initial fall and closed just slightly in the red. Its co-founder Rakesh Gangwal had surprised investors and stepped down from the board and said he will reduce his holding in the company.
Federal Bank(+1.89%) closed in the green after its subsidiary FedFina filed papers with SEBI for an IPO.
ION Exchange(+2.45%) moved up after receiving approval from NSE for the listing of its equity shares on the main board of NSE from February 22.
Crompton Greaves is set to acquire Butterfly Gandhimati(+7.32%) for Rs 1450 crores.
Markets Ahead
There are talks that the Putin-Biden meeting is at a ‘premature’ stage and may happen in the coming days.
As we discussed on Friday, this does NOT look like a time bomb and things are getting better. Still, India VIX is at a 9-month high and may affect option buyers if it moves down.
For NIFTY, the support at 17,000 will need to be respected in the upcoming sessions for the market to remain stable. The next important support is at 16,800.
Bank Nifty is currently trading at the 50-day exponential moving average and the moves over the next days will be important for the index.
Stay careful about intraday volatility even as the Russia-Ukraine issue dies down!
See you at The Stock Market Show at 7 PM!