Today’s Market Summarised
Nifty opened the day at 11,976 with a gap-up powered by global positivity and went up trying to cross 12,000. As you all can imagine, the 12,000 level is a strong emotional resistance level, and the index struggled to sustain above that level. The power outage in Mumbai caused trading volumes across the exchanges to dip, and some retail investors shared difficulties in their trading experience due to technical issues. Was this the reason why Nifty didn’t sustain above 12,000? Anyway, after creating a day-low near 11,870, Nifty closed at 11,930.95, up 16.75 points or 0.14%. The Finance Ministry’s announcements at 12.30pm, failed to impress the market.
Bank Nifty opened the day at 23,973 and went up strongly unlike Nifty, even giving hope that it would be the best performing sector of the day. After taking resistance near 24,190, the index fell only to beautifully take support at 24,000. Later, even this level was broken with the index touching a day-low of 23,552. Bank Nifty closed the day at 23,712, down 134 points or 0.56%.
Nifty IT and Nifty Pharma were the best performing sectors of the day. Nifty Media and Nifty PSU Bank were the worst performing sectors of the day.
Asian markets closed mixed for the day. European markets are almost all in green, but this still could not give Nifty the confidence to.
News Picks
IT stocks continued their rally today, with Nifty IT being the top-gaining sector. Infy closed the day at Rs 1,132.10, up 2.29%, while F&O activated Coforge jumped 8.16% to Rs 2667.60. IT companies, including Infosys, are all set to announce their Q2 reports soon! Stay tuned for more.
The hyped up announcement by Finance Ministry did not give much excitement to the market which was already struggling due to the power outage across Mumbai. Plans under consideration are said to boost demand by up to Rs 73,000 crores.
Shares of ITC moved after many days of consolidation, to end up second in the top gainers table. The scrip closed at Rs 172.20, up 2.59% for the day after making a day-high of Rs 175.20.
After giving really good moves last week, shares of Aarti Drugs closed at Rs 886, down 10%, just today. The stock was at an all-time high last week.
IT and Pharma shares closed in positive as rupee got weaker against the dollar, and were co-incidentally the best performing sectors of the day.
Shares of Vedanta fell 20.43% to Rs 96.95 after delisting process of the company failed.
Shares of Tata Power crashed to Rs 52.85, down 2.94%. This was after the huge power disruption in Mumbai was said to have happened due to failure at Tata Power’s Kalwa Plant.
Markets Ahead
The momentum in Nifty seems to have been broken after the Mumbai power outages caused a huge dip in trading volumes. Mumbai being the heart of India’s trading culture, many traders who work from home were left with only their laptop battery power to successfully place trades. Can this be a reason for Nifty failing to sustain above 12,000 today. Also the technical factor exists, that 12,000 is a strong level. Also the unexciting announcements by the Finance Ministry failed to move the market, as well.
A conspiracy theorist could talk about how this was all inter-connected. What do you think?
Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.
