Today’s Market Summarised
A green day on the second day of the week with high volatility.
NIFTY opened the day at 16,782 with a big gap-up and was volatile. It took resistance at yesterday’s high multiple times before finally breaking it. From the day-high of 16,937, a fall of 250 points was seen. NIFTY closed the day at 16,770, up 156 points or 0.94%.
BANK NIFTY opened the day at 34,871 and slowly moved up with volatility. It could not sustain above the 35,000 mark, and fell more than 650 points from there. Even with some last hour buying, Bank Nifty closed the day at 34,607, up by 168 points or 0.49%.
All sectoral indices closed in the green today. NIFTY Metal(+2.9%), Media(+2.5%), IT(+1.9%) and Realty(+1.6%) moved up the most.
Most Asian markets closed in the green today. All European markets are trading in the green currently.
News Picks
IT stocks bounced back and closed among the top-gainers in NIFTY 50. HCL Tech(+3.8%), Wipro(+3.7%) and TechM(+2.1%) moved up. Coforge(+4.1%) and LTI(+3.5%) also gained well.
Metal stocks shot up after the increase in prices of Iron Ore Futures internationally. Tata Steel(+3%), Hindalco(+2.8%) and JSW Steel(+2.4%) moved up. SAIL(+3.9%), Vedanta(+4.2%) and National Aluminium(+5.4%) also went up.
Financial stocks had a mixed day. Multiple stocks from the sector featured in the top-losers section led by Axis Bank(-1.2%).
Piramal Enterprises(+4.1%) gained after its subsidiary entered into the biologics and vaccines business by acquiring Yapan Bio for Rs 101 crore.
MapmyIndia listed with a premium of 45% at Rs 1,586.40 vs issue price of Rs 1,033/share. It closed at Rs 1,393, up 34%.
Globus Spirits(+6.5%) shot up after starting commercial production at the enhanced capacity in the West Bengal unit.
Tata Coffee(+2.6%) moved up after saying the report saying that Tata group may lose control over 942-acre tea estate in Karnataka is not true.
Shilpa Medicare(+4.3%) moved up after launching Prucalshil (Prucalopride) orally disintegrating strips 1 mg and 2 mg in India.
ZEEL(+4.9%) moved up after saying the Sony merger deal is completed.
Markets Ahead
A dead cat bounce or a proper recovery attempt? That was the question everyone had in mind after the gap-up opening today. Don’t be tricked into thinking markets have recovered as NIFTY closed at its opening level with a Doji candle, indicating indecision.
There is more put buildup in the market today indicating that downwards moves again are less probable. High probability of consolidation or moving up towards 17,000 is expected by NIFTY in the week. But also remember that with the uncertain local and global cues, any major news or announcement can trigger panic again.
NIFTY has taken support yesterday at 10% down from the all-time highs. Bank Nifty is also indicating a mood of consolidation. Keep an eye out on IT stocks for the coming days including Infosys which is near its all-time high.
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