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NIFTY Crashes Once Again. IT Stocks at Fresh Lows – Post Market Report

A bearish day for the markets following other global markets.

NIFTY opened the day at 15,942 with a nearly 300 points gap-down. From here, it consolidated before giving a further breakdown at 11 AM. NIFTY took support near the week’s lowest point and closed the day at 15,809, down by 431 points or 2.65%.

BANK NIFTY started the day at 33,552, with a gap-down of 600 points. It was very volatile for the first 2 hours but fell further once the day-low was broken. Even with the decent recovery towards closing, BANK NIFTY ended the day at 33,315, down by 848 points or 2.48%.

All sectoral indices closed in the red. NIFTY IT (-5.7%), NIFTY METAL (-4%) and NIFTY MEDIA (-3.7%) fell sharply. Just NIFTY FMCG (-0.65%) closed somewhat flat for the day.

All major Asian markets closed in the red. European markets are currently trading well in the red.

Today’s Moves

Our markets were bearish following other global peers. Most stocks closed in the red.

ITC (+3.3%) went against the market trend and hit a fresh 52-week high, closing as NIFTY’s top gainer.

IT stocks once again turned bearish in the day following a 5% fall in NASDAQ. Wipro (-6.2%), HCL Tech (-6%), Infosys (-5.4%), TechM (-5.4%) and TCS (-5.4%) fell heavily and were the top 5 losers in NIFTY 50.

Other IT stocks including Coforge (-7.2%), LTTS (-7.1%) and Mphasis (-7%) were among other IT stocks which crashed.

Manappuram (-9.5%) fell to a 2-year low after the lender’s net profit fell 44% for Q4.

JK Lakshmi Cements (+7.2%) shot up in a bearish market after net profit grew 18% YoY for the 4th quarter.

Metal stocks fell sharply with SAIL (-5.2%), Tata Steel (-4.9%), JSW Steel (-4.8%) and Jindal Steel (-4.4%) falling heavily.

Markets Ahead

Till yesterday, things were looking decent for our markets. Then yesterday night, major results announcement from U.S. retail giants upset the Dow Jones index.

We saw our markets opening with a huge gap-down because of this. S&P and Dow Jones Futures down more than 1%.

Because of the gap-down opening, all the put option sellers at 16,000 moved to push the market down further. This was seen in the major indices along with the general bearish.

Let us see if the Domestic Investors support the market as Foreign Institutional Investors continue selling.

A crazy weekly expiry just as we have been having for the past weeks. NIFTY is once again at the important support zone near 15,740. If the global markets continue their bearishness, we might break this zone and things would get worse. Bears will gain strength and the 16,000 mark would be an important resistance to break.

See you on The Stock Market Show tonight at 7 PM.