Craziness in the market continues with a big gap-up again after Chinese markets.
NIFTY opened the day at 16,044 with a gap-up of 234 pts or 1.4%. Opening above 16k was a good sign and the index moved continuously till the day’s end, fueled by the opening of the European market. NIFTY closed the day at 16,266, up by 456 points or 2.89%.
BANK NIFTY started the day at 33,685, with a gap-up of 449 points. It shot up 400 points in just 30 minutes. After struggling around the 34k region the index shot up to test the resistance at 34,350. BANK NIFTY ended the day at 34,276, up by 960 points or 2.88%.
All sectoral indices closed in the green, ledy by Nifty Media (+4.4%), Metal (+4.2%), Pharma (+3.6%), PSU Bank (+3%), Realty (+4.2%), Nifty Auto (+2.7%), Finserv (+2.5%), and FMCG (+2.1%).
All major Asian markets closed in the green. European markets are currently trading around 1.5% up.
Today’s Moves
Dr Reddy’s (+8.1%) moved up sharply in the day and hit its highest level in May. Yesterday, the company reported a sharp drop in profits for Q4.
Reliance (+5.8%) shot up with power as the entire market suddenly turned bullish.
Concor (-5.4%) and GodrejCP (-4.6%) crashed after announcing their Q4 results yesterday.
Nestle (+4.7%) bounced back from a 52-week low and closed among the top-gainers of NIFTY 50.
Welspun Corp (+17.2%) moved up after winning their largest order in history for the supply of pipes valued at Rs 5,000 crore (approx) in the US.
Chemcon Speciality (+8.6%) moved up after the Gujarat Pollution Control Board cancelled the closure order of the company’s manufacturing plant.
HDFC (+3%) said that as of May 13, 2022, the total foreign shareholding in the corporation is 68.56% of its total issued and paid-up share capital.
Markets Ahead
An unbelievable case of market volatility. Yesterday we say a fall of nearly 3% and today we are seeing a rally of nearly the same percentage.
The Chinese central bank cut its interest rates and induced a lot of positivity into the Asian markets. Our indices followed along with them and shot up in the day.
The 16,000 zone which was supposed to act as a resistance, became a good support in the day. There is however a good resistance at 16,300 being indicated for NIFTY.
Crude oil prices are staying stable in the $110/barrel range internationally. Stocks which benefit from this, including Reliance, may be strong. Reliance alone contributed more than 110 points to NIFTY today.
See you on The Stock Market Show tonight at 7 PM.
