Today’s Market Summarised
Consolidation day in the market, with Nifty showing bearishness after noon.
Nifty opened the day at 15,066 with a slight gap-down. It tried to move up in the first few minutes but could not break yesterday’s high. We saw Nifty consolidating in a 70-point range after this, using 15,050 as a support. But just around 1:30 pm, the index started falling sharply.
More fall was seen towards the end, with Nifty closing the day at 15,030, down 78 points or 0.52%.
Bank Nifty opened at 33,765 with a gap-down and tried to move above 34,000. This was not successful and the index decided to consolidate in a 350 point range for the day. Interestingly, Bank Nifty closed the day below yesterday’s low at 33,685, down 237 points or 0.70%.
Nifty Media and Nifty Realty each closed 2% up. Nifty Pharma closed 1.22%. All other sectors traded bearishly with Nifty Finserv(down 0.98%) and Nifty Metal(down 0.92%) losing the most.
Major Asian markets closed in the red. All European markets are also trading in the red at the time of our market close.
News Picks
Brazil is facing problems in coffee production due to water issues. Brazil is the largest coffee producer in the world. So a rise in coffee prices globally is expected. Coffee companies Tata Coffee(+8%) and CCL(+4%) moved up in the day. But Coffee Day fell by more than 7%.
These three PSU Banks jumped up with unconfirmed reports saying that privatization will also include Central Bank(+4%), Bank of India(+4%), IOB(+5%).
Indian Oil Corp reported a net profit of Rs 8,800 crore for Q4 against a Rs 5,188 crores loss last year. Profit numbers are up 87% compared to last quarter. The stock moved up after the news and closed 1.5% up.
BPCL fell sharply but recovered in the day after reports said that the timeline of major privatisations like BPCL were being moved back. Stock is 0.45% down. This happened even as peers IOC and Hind Petro(+ 2.92%) closed with gains.
Happiest Minds has partnered with Coco-Cola Bottling Company to help with their robotic automation. The stock jumped up but closed just 1.5% up.
Shares of Coal India closed 3.7% up in the day, even with Nifty Metal looking weak. The company, which has only gained 23% in the last 1-year is expecting good results as steel companies have been reporting good production numbers.
After Tata Motors reported a consolidated net loss of Rs 7,585 crore for Q4, the stock closed 5.4% down near its opening level.
The realty firm Brigade Enterprises reported a sharp rise in its consolidated net profit at Rs 39.57 crore. The stock was 10% up just after the market open but fell down to close just 3.9% up. This inspired many other realty stocks to move up, with Godrej Properties closing 2.2% up.
Pharma shares closed among Nifty’s top gainers today with SunPharma(up 2.21%) and Cipla(up 2.21%). The pharma index is trying to move back up after multiple days of falling.
Steel stocks saw a fall afternoon, just like yesterday. With this Jindal Steel(– 4%), National Aluminium(-3.15%) , SAIL(down 2.5%) closed in the red. JSW Steel and Tata Steel featured in Nifty 50’s top losers list.
Finance stocks including HDFC(down 1.7%), HDFC Bank(down 1.25%), Kotak Bank(down 1.4%) and Bajaj Finserv(down 1.6%) closed among Nifty’s top-losers as financials came under selling pressure.
WockPharma is up by 7.7% hitting its two year high.
Markets Ahead
With yesterday’s high again acting as a resistance, Nifty is now resting. It was a general day of consolidation in the market with bearishness near the end.
Reliance broke the 2,000 level today and gave a really good move, as we expected it to yesterday. But the stock came down later. The stock helped Nifty stay above 15,000 level along with SBI, which did not fall along with other finance stocks.
With the rupee stabilising, pharma stocks are trying to move up again. The index is close to its all-time highs and might see a breakout soon.
The 15,000 support was tested multiple times but held strong in the day. We cannot call it a bearish day at all, and know that 14,900 is the next support to look at for tomorrow.
The reason for Nifty’s fall was just a change in sentiments internationally ahead of the US Federal Reserve’s meeting details. Interest rates are expected to remain unchanged even as inflation has increased. Gold prices have been spiking as a result. Click here to learn how all you can invest in Gold.
Market might close between 14,900 and 15,100 tomorrow with the data we have now. If global markets turn even more bearish, 14,900 support might be broken and you could look into 14,800 as the next zone.
Hope you had a great day in the market.
Catch you all on The Stock Market Show tonight!