The market opened with a weak start today due to monthly expiry amid weak global cues. Sensex and Nifty remained sluggish throughout the day. This is the fourth consecutive day when the market has been in negative territory. Today buying was seen in metal stocks, but there was selling pressure in healthcare sector stocks. At 2 pm, Sensex and Nifty were trading flat.
Why is the market so volatile?
– Volatility due to monthly expiry
Reasons for recovery:
– Support at lower levels due to buying of domestic funds
– Good recovery in rupee after 6 consecutive days of decline
– PCR was near oversold levels, leading to short covering from lower levels
Highest open interest in put options on Nifty 25900 and Bank Nifty 58800.
Why is the market unable to maintain its uptrend?
– Continuous selling by FIIs
Highest open interest in call options on Nifty 26000 and Bank Nifty 59000.
– Low volume due to holiday season
– As soon as recovery begins, selling pressure comes
Which levels are important now? – Nifty 25775-25875, Bank Nifty 58600-58800 strong support level.
– Nifty 26000-26100, Bank Nifty 59200-59400 upper range
– If Nifty closes below 25900 and Bank Nifty closes below 58800, it is a sign of increasing weakness.
stock in action
Hind Copper:
– Benefit from strong copper prices
– Constantly on our recommendation list
– Featured as ‘Stock of the Day’ this morning
Hero Moto:
– Positive monthly update was expected in ‘Stock Insights’ yesterday
– Featured again this morning as ‘Stock of the Day’
Koforge:
– Pressure on stock after big encoro deal
– It was reported yesterday that the stock would struggle after the deal.
– Featured as ‘Stock of the Day’ this morning
Mazgaon Dock:
– Profit booking in defense stocks after DAC meeting
– Featured as ‘Stock of the Day’ this morning
Nykaa (FSN E-Commerce Ventures):
– Strong rally in stocks in anticipation of positive monthly update
Initially, the Sensex was trading around 150 points down at 84,544. Nifty was trading around 40 points down at 25,900. Bank Nifty was trading 70 points down at the level of 58,862. All sectoral indices were trading in the red. Indices like Auto, Metal and Consumer Durables tried to show slight gains in the next hour, but the biggest declines were seen in PSU Bank, Realty and Healthcare indices. On Nifty 50, stocks like Shriram Finance, TMPV, Tata Consumer and BEL were up. Meanwhile, Apollo Hospitals, Eicher Motors, Tata Steel, Coal India and SBI Life were among the biggest losers.
