Huge fluctuations were seen in the domestic stock markets on the last day of the week. A slight recovery was seen in the market after the monetary policy decision of RBI. Amid strong buying in FMCG stocks, benchmark indices closed at the day’s highest levels. Sensex closed 266 points higher at 83,580. Nifty closed 50 points higher at 25,693. Bank Nifty closed at 60,120, up 57 points. In today’s trading, Nifty Mid Select fell 55 points to close at 13644 (-0.41%). Nifty Smallcap fell 45 points to 16938 (-0.27%). The FMCG index closed 2.2% higher. Private bank, realty, metal and NBFC indices closed in the green. The IT index was the top loser, closing 1.4% lower. Decline was also seen in pharma, healthcare, auto and PSU banks.
Selling continues in IT sector for the second consecutive day
Weakness continued in IT stocks, selective selling was seen for the second day as well. Hexaware Tech declined about 4.8%. Tata Elxsi fell 4.5%. Coforge and Cyient both declined about 3.6%.
Where was the rise and fall in Nifty 50?
Among Nifty 50, ITC gained around 4.4%. Kotak Bank gained 3.1%. HUL gained about 2.6%. Bharti Airtel saw a gain of 2.3%. On the other hand, some large-cap stocks remained under pressure. HDFC Life fell by about 2.5%. Both TCS and Tech Mahindra declined by about 1.8%. Bajaj Auto declined about 1.5%.
Movement in these shares after the results
There was sharp movement in the shares after the results. There was a huge jump of about 13.3% in Hitachi Energy. MRF rose by about 8.7%. Data Patterns gained 7.5%, while BEML declined about 7.4%.
Today’s top gainer-loser
In today’s trading, Godfrey Phillips gained about 10.6%. Thangamayil Jewelers gained 7.1%. Mahanagar Gas gained about 6.9%. Welspun Enterprises saw a rise of 6.7%. Semindia Projects fell by about 6.5%. eClerx Services declined by 6.4%, UNO Minda by about 6% and Housing Financiers by 5.7%.
At around 2 pm, the Sensex was trading at 83,392, up 80 points. Nifty was trading about 20 points down at 25,622. After the announcement of monetary policy, selling pressure was seen in public sector bank shares. The PSU bank index fell more than 1%. However, private bank shares were trading higher today.
Anil Singhvi’s Editor’s Take:
How was the RBI policy?
– Neutral to the market, as expected
– Targets of both inflation and GDP were slightly increased
– There was nothing special in the policy to boost the market
– Nor was there anything that would cause a sharp decline in the market
– The only problem is that the rupee fell sharply after the policy
What are the causes of weakness?
1. FII selling pressure
2. Global markets are also weak
3. Huge fluctuations in gold, silver and metal
4. Lack of buying sentiment
5. Everyone wants to lighten their positions at higher levels
6. Market is not able to maintain its rise even on good news
7. Sharp selling in mid-small cap stocks is weakening the sentiment
8. Traders are reluctant to take long positions ahead of the weekend
9. Continuous selling in IT shares
10. Weakness in PSU, auto and metal stocks is also increasing pressure.
What is the reason for recovery?
– The recovery was not special, and there was no particular reason for it.
– Nifty took support near the important level of 25500 and Bank Nifty took support near 59600.
– There was a slight recovery because the market was somewhat oversold.
– If there is any positive news during the weekend then there is a risk of gap-up opening.
– Hence, some short covering also took place at lower levels.
Which levels are important now?
– Nifty 25375-25500, Bank Nifty 59400-59600 are the next support levels.
– Nifty 25650-25775, Bank Nifty 60050-60225 are upper range levels.
If Nifty closes below 25550 and Bank Nifty closes below 59800 then weakness will increase.