V-shaped recovery in the market helps the market close in the green for the first time this week.
NIFTY opened the day at 16,111 with a gap-up and fell. It then broke yesterday’s low and moved down even more below the 16,000 zones. But just before noon, the index bottomed out and eventually started flying up.
After a 300 point move from the day-low, NIFTY closed the day at 16,170, up by 144 points or 0.90%.
BANK NIFTY started the day at 34,689 with a gap-up. The index fell more than 200 points from here but did not go in the red. Massive green candles were formed after 1 PM, and the index moved 800 points up from the day-low. BANK NIFTY ended the day at 35,094, up by 755 points or 2.20%.
NIFTY PSU Bank (+3.1%), NIFTY Metal (+2.6%), NIFTY Bank (+2.2%) and NIFTY Finserv (+1.9%) outperformed in the day. Pharma (+0.11%), FMCG (-0.22%) and Auto (+0.78%) indices closed without much movement as they had already been strong.
Asian markets closed mixed in the day. European markets are currently trading in the green.
Today’s Moves
Tata Steel (+5.2%), JSW Steel (+4.4%)and Hindalco (+2.7%) featured in the top-gainers list after falling heavily for the last 3 days.
SBI (+3.2%) led gains for Public Sector Banks during the day. Bank of Baroda (+4.7%), Central Bank (+5.9%) and IOB (+6.5%) moved.
ITC (-2.2%) closed in the red after factoring in a Rs 6.25/share dividend.
Indigo (+10.3%) shares moved up after plans even after reporting higher net losses for Q4. Shares moved up after the airline said they will increase prices.
Torrent Pharma (+10.1%) rallied after announcing 1:1 bonus issues last quarter even with a Rs 118 crore loss for Q4.
Markets Ahead
Yesterday, during the Fed Minutes Jerome Powell said that the Federal Reserve may not be able to control inflation. And markets shot up.
It is indeed a buy on rumour, sell on type of move that we are seeing. Along with this, short-covering rallies are also giving false strength to the market.
Bank Nifty has filled the gap it created at the beginning of May. But NIFTY still has the range of 16,400 to break.
Yesterday we asked you if the market will trick everyone and shoot up. And that is exactly what happened today. Anyway, a really interesting monthly expiry.
How did the May Monthly Expiry go for you? Let us know in the comments of the marketfeed app!
See you all at The Stock Market Show tonight at 7 PM.