Today’s Market Summarised
Our markets close in red in reaction to other global markets falling.
NIFTY opened slightly higher at 16,900 and moved down. Profit booking pulled down the market from its highest level since the fall of the Russia war news. There was bearishness throughout the day and NIFTY ended at 16,663, down 208 points or 1.23%.
BANK NIFTY opened at 35,487 and consolidated in a 400-point zone. Towards the afternoon, the index crashed down nearly 950 points from the day-high. BANK NIFTY ended the day at 35,022, down by 289 points or 0.82%.
NIFTY IT (-2.5%), NIFTY Metal (-4%) and NIFTY Media (-2.3%) fell the most. NIFTY Auto (+0.57%) closed slightly in the green.
Asian markets closed mostly in the red today. European markets are trading in the red currently.
News Picks
FMCG stocks stood their ground and closed among the top-gainers of NIFTY 50. Tata Consumer (+3.6%) and Britannia (+1.1%) moved up while Dabur (+2.9%) and VBL (+2.8%) followed.
Cipla (+1.8%) continued its rally to fresh all-time highs.
Hindalco (-5.2%), Tata Steel (-4.8%), JSW Steel (-3.5%) closed in the red with heavy profit booking. ONGC (-4.6%), Coal India (-4.1%) and BPCL (-2.6%) also fell.
Auto stocks closed with strength after many received approvals under the PLI scheme. Maruti (+1.4%) and M&M (+2.4%) closed among the top-gainers.
As the tech-heavy NASDAQ fell yesterday, our IT stocks followed. Mindtree (-5.8%), Coforge (-5.1%), LTTS (-4.3%), TechM (-2.9%) and Infosys (-2.7%) were the top losers from NIFTY IT.
As RBI removed pricing caps for microfinance lenders, a surge in stock prices were seen. Bandhan Bank (+6.1%), AU Bank (+4.3%), Indiabulls Housing (+3.9%) closed with gains.
Maharashtra Registrar of Companies approves Ruchi Soya’s (+13.1%) FPO RHP (Red Herring Prospectus). The stock is up 35% in 2 days.
Markets Ahead
Markets around the world continue to be affected by the news. Ukrainian Presidential Advisor has said that Russian forces are not currently trying to take Kyiv, but there will either be an agreement at the negotiations or Russia will go on the offensive.
Currently, forces by NATO are deployed in the neighbouring country of Poland. Any use of weapons of mass destruction on Ukraine, chemical or atomic, could threaten a big war across Europe.
If technicals are to be looked at, the current important resistance for NIFTY is at 17,000. The 200-day moving average is also around that zone. There is support for the index around 17,480. Continue to expect high volatility in the coming days.
India VIX is at a 4-day high, but do keep a watch on stocks that are showing strength during this uncertainty like Linde India.
See you on The Stock Market Show at 7 PM!