Today’s Market Summarised
NIFTY closes the third week of December as one of its worst in 2021.
NIFTY opened the day at 17,298 with a gap-up and kept on falling. It fell below yesterday’s low and moved down to the 17k mark. It tried to bounce back and found resistance at 17,100 before falling again. NIFTY closed the day at 16,985, down 263 points or 1.53%.
BANK NIFTY opened the day flat at 36,550 and fell. Once the level of 36k was broken, it moved sideways for more than 4 hours. There was selling near closing time and the index made a fresh day-low. Bank Nifty closed the day at 35,618, down by 930 points or 2.54%.
NIFTY IT(+1.3%) was once again the only index to close in green. NIFTY MEDIA(-4.7%), Realty, PSU Bank(-3.6%) fell heavily. All other indices fell more than 1%.
Most Asian markets closed in the red today. All European markets are trading mixed currently.
News Picks
IT stocks closed with gains after the breakout in the index we discussed yesterday. Wipro(+4.1%), Infosys(+2.7%) and HCL Tech(+1%) closed in the top-gainers of NIFTY 50. Wipro moved up heavily after news that the stock could see inflows of more than Rs 1,000 crores after FTSE and Sensex rejig.
IndusInd Bank(-4.8%) moved down till its November lows with selling in banking and financial stocks. Kotak Bank(-3.6%), HDFC(-3%), SBI(-2.7%) also fell among others from NIFTY 50.
Tata Motors(-4.4%), ONGC(-4%) and Hindustan Unilever(-3.4%) also fell sharply on the day. Tata Motors European JLR Sales stood at 3,853 units vs 6,007 units last year. Tata Motors DVR(-7.8%) also fell.
Indiabulls Housing Finance(-8.2%) fell sharply again after Morgan Stanley rated it ‘underweight’. The stock was down yesterday with promoter stake sale. Apollo Hospital(-8%), BHEL(-7.6%) and ZEEL(-7%) were some stocks that fell heavily.
VEDL(-7%) moved down 25 points including the Rs 13/share dividend adjustment.
RateGain listed on exchanges at Rs 372.10/share vs issue price of Rs 425/share, down 12.5% and fell again to Rs 340. It was one of the worst-performing IPOs this year.
Markets Ahead
One of the most bearish weeks for the market in a while. Incidentally, most gains from the month of December have been wiped out.
New 52-week lows were created by Whirlpool, Colgate and Gillette along with Bajaj Auto. Meanwhile, Infosys and TechM are near their 52-week highs.
Bank Nifty has closed at its lowest level since August. There is surely a sense of bearishness in the market. The fall in HDFC Bank and Kotak Bank has been quick and sharp.
On Monday, we may see a slight pullback or a gap-up opening but that would not be enough to break out the bearishness. Reliance is near its important support zone of 2,300
As we have been saying, go bullish on NIFTY only if it crosses the 17,600 level. Short term consolidation is expected around the 17,000 mark as indicated by Open Interest. On the short side, a move below 16,800 will indicate even more bearishness for the entire market.
Will Institutional Investors stop heavily selling in December? Let us know what you think in the comments section of the marketfeed app!
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