What a day this was—a complete U-turn in the markets. No one was expecting this, but the turn of events over the last 48 hours caused a dramatic shift, and we’ll dive deeper into what happened.
The bulls came back with a vengeance today. Let’s explore what unfolded.
Market Overview
So, where is the market headed? The Nifty was absolutely bonkers today, rising 1.65%. It has now crossed the previous eight sessions’ high, signaling that the downside is over for now. As I mentioned in the past eight sessions, we were waiting for a close higher than at least a two-day high. That happened today after a long wait, confirming that the downside, which started in early August, is over for now. The recent lows around 23,800 seem to be the significant bottom moving forward. Nifty closed with a strong 1.65% gain
Nifty Next 50
Nifty Junior also surged by 1.82%, countering the previous close below the average.
Nifty Mid and Small Cap
Mid-caps made a solid comeback with a 1.82% gain, reaching 21,298. This was a resounding return for the bulls, while small caps also gained 1.7%, though they haven’t yet broken above the average or the congestion zone but have returned to levels seen three days ago. Much of the ground lost in the indices over the last few sessions has been regained.
Nifty Bank Overview
Bank Nifty saw a 1.59% gain, though it hasn’t yet broken out. In terms of daily performance, 414 stocks advanced today, while 86 stocks declined. The CNX 500 itself was up 1.69%. We’re also tracking the percentage of stocks trading above the moving averages of 20, 50, 100, and 200 days, as well as the EMA of 50 days. There’s noticeable movement in the shorter time frames, which suggests that with a few more days of similar performance, the market could be poised for a stronger move.
Nifty Heatmap
The heat map tells the story—a sea of green across the board. ITC was up 2%, and IT stocks like TCS, HCL Tech, Infosys, and Wipro all rose more than 2%, with Wipro leading at 4.2%. HDFC Bank and ICICI Bank also posted significant gains. The Nifty Next 50 saw dramatic moves with DLF up 5.5%, PFC up 4.04%, and other stocks like Bosch, Siemens, Adani Power, BEL, and HAL all performing strongly.
Sectoral Overview
Sectorally, IT led the pack with a 2.9% gain, followed by real estate at 2.5%, and autos at 2%. Public sector enterprise stocks were up 1.9%, with all sectors posting gains. FMCG and consumption sectors also showed strong performance with 1.5% gains, effectively erasing most of the losses from last week and posting a 4.7% gain for the week.
Sectors of the Day
Nifty REALTY Index
Real estate all through it was up to date. DLF, oB, Royalty Brigade, Godrej all doing well. It is now beginning to go up again after this consolidation of the last couple of months. A good chart of 2.49% up
Stocks of the Day
Central Depo Limited
In the stock spotlight, CDSL surged 8.8% today. Recent data revealed that Groww, Zerodha, and Angel One continue to amass new Demat accounts, pushing the total number of Demat accounts above 16 crores. While some accounts may not be active, active participation is rising, reflecting the market’s strength. CDSL has seen a strong performance over the last month and a half, jumping from 2000 to nearly 2800, indicating long-term strength.
Story of the Day : Return of the bulls
The main story today is the return of the bulls with a vengeance, marked by a strong weekly close for Nifty. The index has entered the gap created last week, closing above 24,459. With just a couple of hundred points separating it from previous highs, the market’s strength is evident. The collapse of the VIX from 23 down to nearly 14 is another positive sign.
In the US markets, the recent narrative of a possible recession seems to be cooling off. Inflation has dropped below 3% for the first time since early 2021, and retail sales have increased by 1% after a downward revision. This shift has led to a significant recovery in the S&P 500, which has bounced back 8.2% from recent lows, and the Nasdaq, which is up 12% from its lows. The sudden change in the global markets’ stance, coupled with strong economic data, is driving the market higher.
Even in the Japanese market, the Nikkei 225 took support at a crucial trend line and posted a strong weekly move, erasing losses from previous weeks. The weaker US dollar index is also boosting emerging markets like India, which is reflected in today’s strong performance across sectors.
In conclusion, the Nifty appears to be on a very strong footing again. As more data trickles in from the US and the next outlook on interest rates takes shape, it will be crucial to see how the markets respond. What are your thoughts on this sudden market turnaround?
