Market Overview
Today was a very volatile intraday trade for the Nifty and many stocks, but the market ended the day essentially unchanged. This volatility is likely due to the FTSE index shakeup. When the FTSE index constituents are rebalanced, a lot of stocks are bought and sold, contributing to the market’s instability. Additionally, there seems to be a lack of strength in the Nifty to push higher, leading to stagnation over the past six to seven sessions.
Today, the Nifty was down by a marginal 0.28%. The sectoral shifts are helping to save the Nifty on a daily basis. Different sectors take turns performing well—yesterday, it was metals, today it’s IT and rail stocks. However, the market is losing steam in some pockets
Nifty Next 50
The Nifty Next 50 is now back to its breakout point, experiencing a gradual price correction without any significant downward force.
Nifty Mid and Small Cap
The same sluggish movement is seen in mid caps, which remain above their moving average but show no clear trend direction.
In small caps, the situation is similar, with no major changes today as they closed nearly flat at -0.04%.
Nifty Bank Overview
The Bank Nifty has bounced back from its breakout point, closing up by 0.25%.
FIIS and DIIS
Foreign Institutional Investors (FIIs) have been active, either buying in bulk deals or making smaller purchases, like yesterday’s 415 crore buy. There seems to be a dearth of triggers in the market, leading to an equilibrium where liquidity supports the market, and outflows are not disturbing it.
Interestingly, despite rumors of increased taxation or speculative tax, the market hasn’t reacted negatively. This suggests that there is enough liquidity to provide support, balancing out any outflows.
Nifty Heatmap
In the Nifty heat map, most sectors were flat or down except for a few, like Bharti Airtel and some IT stocks. Autos, FMCG, cement, power, and energy were all down. Public sector banks also declined.
In the Nifty Next 50, it was challenging to find stocks that were going up. Madarsan, which has been consistently rising, was one of the few gainers. Jindal Steel, Indigo, Nokri, and IRFC also saw gains, with railway stocks performing well today.
Sectoral Overview
Sectoral trends showed IT and metals eking out small gains, but most sectors were down. FMCG lost the most at -1.2%, followed by PSU banks, real estate, energy, auto, and public sector enterprise stocks. Despite talks of potential income tax relief for the 10 to 15 lakh bracket, which might boost consumption, there was no impact on the market.
Sectors of the Day
Nifty IT Index
IT stocks showed some positive movement but faced resistance, closing the day up 0.76%. The US market holding up well is also supporting IT stocks.
Stocks of the Day
Suzlon
Suzlon broke out today after a long consolidation, closing up nearly 5%. The narrative around Suzlon has strengthened over the past couple of years, despite recent governance issues, as the price has led to increased confidence.
Rail Vikas
Railway Gas Nigam (RBNL) also broke out today after a significant correction and consolidation period, closing at an all-time high of 410. In this market, stocks closing at new all-time highs are a positive sign.
Gold Chart
Gold moved up well, now near 73,000, indicating geopolitical concerns and a safe-haven demand.
Today’s intraday Nifty moves were largely driven by the FTSE index reconstitution. This adjustment causes significant buying and selling as institutions align with the index. As a result, we saw heavy volumes and volatility towards the end of the trading day, especially in the last half hour. This rebalancing involved significant inflows and outflows for various stocks, leading to a sharp increase in trading volumes.
