The domestic stock market witnessed a sharp decline today in the last trading session before the budget. However, the market showed a good recovery from the day’s lows. The Sensex fell by 600 points during the day, and the Nifty also fell by almost 180 points. But at the close, the market closed well above intraday lows, although its three-day high was broken. Sensex fell 296 points to close at 82,269. Nifty fell 98 points to close at 25,320. Bank Nifty fell 347 points to close at 59,610. Nestle India, up 3.4%, was the top gainer in the Nifty. The biggest gains were seen in Tata Consumer, Apollo Hospitals, M&M, ITC, Titan and BEL. Hindalco, Tata Steel, Coal India, ONGC, ICICI Bank, JSW Steel and Tech Mahindra witnessed the biggest decline.
Why such a sharp decline in the market?
– The biggest reason is selling by FIIs.
– After two days of net-net short buying, yesterday’s strong market resulted in heavy selling.
– Sharp fluctuations in gold, silver and metals globally also created an atmosphere of fear.
– After a good rally in the last three days before the budget, trapped traders are lightening their positions.
Despite good results, sentiment is weak due to fall in many stocks.
– No one is in the mood for new purchases before the budget.
Is there any chance of recovery in the last hour?
– Everyone wants to reduce their positions before the budget.
-Whether the position is bullish or bearish.
– In such a situation, there may be some short covering from lower levels.
– But it is difficult to sustain great momentum and at high levels.
Which levels are important now? – Nifty has strong intraday support at 25150-25200; It is difficult to break through.
– If this Nifty range breaks, then the next major support is at 24925-25050.
– Upper range for recovery is 25350-25450. – There is a high possibility of testing in this range.
Bank Nifty has strong support at 59300-59500.
– Profit booking range for Bank Nifty is 59900-60100.
If Nifty closes below 25150 and Bank Nifty closes below 59300, reduce long positions.
– If Nifty closes above 25450 and Bank Nifty closes above 60100, the uptrend will be strong.
Stock in Action:
Voda Idea:
A huge rise was seen in the stocks before the budget.
Aurobindo Pharma:
– Stock surged due to imposition of MIP (Minimum Import Price) on PenG, 6-APA, and Amoxicillin.
– It was advised to buy this stock in ‘Stock of the Day’ this morning.
Hind Zinc:
– Affected by the sharp decline in silver and other metals.
– This stock was mentioned in ‘Opening Zero’ this morning.
Vedanta:
– Stock fell despite good results.
– The decline was not due to results, but due to weakness in global metals.
– The stock was up 48% in 3 months.
– This stock was mentioned in ‘Opening Zero’ this morning.
Swiggy:
– Stocks weakened due to weak results.
– Selling was advised in ‘Results Review’ this morning.
At the start, the Sensex was down around 450 points at 82,109. Nifty was down 160 points at around 25,250. Bank Nifty was down 228 points and the index was around 59,675. Today heavy selling was clearly visible in midcap and smallcap indices. The metal index fell more than 3%. The IT index also fell 1%. Selling pressure was seen in all Nifty sectoral indices. Volatility index India VIX rose 3.55%.
Hindalco was the top loser on the Nifty, falling 5%. Sharp decline was also seen in Tata Steel, JSW Steel, Coal India, HCL Tech, Infosys and ONGC. However, FMCG stocks performed better today. Nestle India, Maruti Suzuki, Apollo Hospitals, ITC, Asian Paints, HUL, Indigo, Titan and Tata Consumer were among the top gainers.
Compared to the previous closing, the Sensex opened 619 points down at 81,947. Nifty opened 171 points down at 25,247. Bank Nifty opened 415 points down at 59,542. Rupee opened 4 paise stronger at 91.91/$ against the dollar.
Despite considerable volatility in US markets, the closing took place in a very narrow range. In commodity markets, gold, silver and copper hit new record highs, while a sharp jump in crude oil prices added to the tension. Selling by FIIs and continuous buying by DIIs may impact today’s opening. It seems the three-day rally will end today.
Huge ups and downs on Wall Street yesterday
Tremendous fluctuations were seen in the American markets. The Dow closed with a modest gain of just 55 points after swinging in a wide range of nearly 700 points. After six consecutive days of gains, the Nasdaq fell nearly 170 points. The futures market is also under pressure, where Dow futures are trading nearly 150 points lower.