Today’s Market Summarised
Nifty moved up and down with a lot of volatility in a 160 point range today. Just like we usually see on Wednesday’s market fell sharply, but then went back up with equal power towards the end of the day. Once again closing flat against yesterday’s close, we could say that Nifty indeed consolidated today.
After opening flat at 15,125, and from the first few candles, it was made clear that the index would be volatile today. The index fell multiple times to 15,000 level, and even broke it once. But strong buying was seen across the board whenever Nifty touched 15k, and the index rebounded to close the day at 15,106, down 2 points or 0.02%.
Bank Nifty turned a bit bearish in the day, but ultimately consolidated and closed in the red. 36,000 was taken as a good resistance and the index could not sustain above this level. It fell below yesterday’s low after trying to take support at 35,500 but gained sharply along with Nifty in the last 30 minutes. Bank Nifty closed at 35,783, down 273 points or 0.76%.
Nifty Realty gained the most in the day, followed by Auto and Pharma. Bank Nifty and Fin Nifty fell the most today.
Asian markets remained mixed in the day. European markets fell after opening and this also reflected in Nifty around 1:30 pm, now trading mixed.
News Picks
The Bajaj Twins – Bajaj Finserv(up 2.8%) and Bajaj Finance(up 1.4%) went up today. Baj Finance seems to have followed Baj Finserv, who was already trading in the green, near the end of the day.
Life insurance companies SBI Life & HDFC Life continued to rally from yesterday. The positive commentary from the HDFC LIFE CEO today gave the insurance sector a major boost.
SBI General Insurance’s Gross Direct Premium growth of 74% YoY gave some confidence to the market. Data from General Insurance looks good for January.
EICHERMOT was down by 1.5%. The stocks fell heavily after reporting their Q3 earnings during the later part of the day. The company’s Q3 report was not well received by the analysts and profits were booked in the market. Net profit of ₹532.6 crore was reported for Q3, up nearly 7% YoY. Revenues up 19% YoY at Rs 2,828.3 crore
M&M up by 2.14% & TATA MOTORS up by 1.18%. Both these stocks fell by more than 3% yesterday. M&M was constantly moving throughout the day whereas shares of TATA MOTORS saw a sudden and huge buying demand around 2.30 pm in the afternoon.
TCS was up by 1.15%. TCS announced that the company will hire around 1,500 technology employees across the UK over the next year. The company said they are committed to invest in UKs economy and technology sector.
HDFC Bank fell the most in Nifty 50 and pulled the index down more than 22 points.
Shares of Tata Steel closed down by 1.28% after profit booking kicked into the stock. The company had announced Q3 results yesterday, returning to profitability.
Shares of Muthoot Finance gained 6.85% after the company reported its profits numbers yesterday. It gained slowly and steadily throughout the day.
Shares of Indiabulls Housing Finance gained sharply after 12 PM to close up by 5.62%. It was among the top gainer in F&O activated stocks.
MotherSumi gained sharply and hit a fresh 52-week high today. A lot of buying was seen in the stock exactly near 12 noon.
Cipla closed in the top-gainers list after the company said it plans to double share from consumers health business in the next 5 years.
Shares of Dixon closed 7% up in the day, rallying more than 20% since last Thursday. Upcoming share split in the company.
Shares of MRF gained sharply afternoon to close near Rs 97,000. Just Rs 3,000 to go till the 1-lakh milestone! Q3 results are expected tomorrow.
Markets Ahead
Nifty has once again consolidated with a red candle. But the rally towards the end was very interesting to see. Almost all stocks and indices jumped, showing that there was a lot of buying interest across the whole market.
Even across the whole day, when Nifty touched 15,000, there seems to have been a lot of buying like someone did not want the market fall. Possibly a lot of FII buying activity at these ranges was the reason.
With no other big event coming, markets seem to be in a mood to consolidate. The increase in call option contracts at 15,200 and 15,300 also shows that a lot of people don’t want the market to go up in this expiry.
Keep watching for the 15,000 support. Just like how breaking supports can be a trade opportunity, taking support at a level and going up is also a good indication. Keep watching Nifty between the ranges of 15,000 and 15,200. Any movement beyond these ranges will show that there is a change in the consolidation sentiment.
Hope you will all tune in to The Stock Market Show tonight. Keep watching this space for more.