There was a lot of volatility in the domestic stock market on Tuesday, which coincided with the expiry of Nifty’s weekly options. In early trading, the market tried to make gains, but lost all its gains by the market close. Sensex fell 114 points to 75,200, while Nifty fell 32 points to 23,618. Bank Nifty fell 127 points to close at 53,409. However, the broader market saw strong buying today; Nifty Midcap and Smallcap indices rose up to 1%. Shortly after the market opened, Sensex was trading above 75,600 with a gain of 350 points. Nifty was also trading above 23,700 with a gain of 70 points. Bank Nifty also saw a slight rise, and Nifty Midcap and Smallcap indices were also trading higher.
What is the reason for this strength of the market?
– However, a number of negative factors remain today:
– Rupee has reached its lowest level ever.
– Crude oil prices remain stable around $110.
Signals from the global market have been mixed.
– Despite these adverse conditions, the main reason for the strength of the market is the continuous buying by FIIs (Foreign Institutional Investors) for the last three days.
Apart from this, domestic funds also made purchases yesterday.
The incident of America avoiding military attack on Iran also gave some positive support to the market.
Strong growth in mid-cap and small-cap segments has further strengthened the market sentiment.
– Although there is some internal strength in the market, unless crude oil prices come down, there is little chance of a big and sustained rally in the market.
– The rise in IT shares has provided a lot of support to the market.
What important levels should investors keep an eye on at this time?
Nifty 23425-23575; Bank Nifty 52800-53200: Strong support level
– Bank Nifty: If it remains above 53700, it will rise further.
– Nifty 23765-23850; Bank Nifty 54100-54400: Upper Range
– If Nifty closes below 23600 or Bank Nifty closes below 53200, then the situation will be a bit calm.
– If Nifty closes above 23850 or Bank Nifty closes above 54500, then the rally will increase further.
India VIX fell by 4%. IT index gained 2%. Barring a slight decline in the consumer durables sector, all other sectoral indices were trading in the green. Infosys was up 4% today and remained the leader. Good growth was also seen in HCL Tech, Tech Mahindra, TCS, Wipro, Adani Enterprises, Trent and Asian Paints. Hindalco, Coal India, ONGC, Titan, Kotak Bank, JSW Steel, Eicher Motors and UltraTech Cement were among the biggest fallers today.
Petrol and diesel prices increased again; Inflation concerns increased
Petrol and diesel prices have been increased for the second time in a week. Oil marketing companies have increased the prices of both the fuels by about ₹1 per litre. Continuous increase in fuel prices may increase concerns about inflation. It may also impact the auto, logistics and consumer sectors.
Trump postponed attack on Iran
US President Donald Trump has once again postponed possible military action against Iran. Trump said that this decision has been taken at the behest of Qatar, Saudi Arabia and UAE. America will now wait for the results of diplomatic talks with Iran. This news has created an atmosphere of relief in the global markets.
India’s clear stand on buying oil from Russia
India has made it clear that it will continue to buy oil from Russia. The Petroleum Ministry said that the country will continue to take decisions based on its energy needs. Following this stance of India, America has extended some exemptions on Russian oil by 30 days. This news is considered important for the oil market and energy companies.
