Where is the market headed?
The month of April started with a bang yesterday, but today the entire bank got busted. In the State of the Union address by President Trump, he continued the warmongering. While in many tweets he mentioned that the US is ready to withdraw, more elaborate plans of escalation were discussed in that meet, and the markets really tanked off worldwide. Consequently, the S&P 500 crashed and Asian markets collapsed this morning. Gold came down as all liquidity-oriented moves happened in the opposite direction, and the entire gain of the previous session was practically wiped out in the morning.
Market Overview
If we look at the charts, there is some silver lining. However, the fact is that the market did open low and went lower to make a new low. It then came back all the way from 22182 to close at 22700. Almost 400 plus points were gained during the day from the bottom, which largely suggests that the market is getting to a point where every dip is now getting bought.
As seen in the chart, in the last six or seven sessions, the market hasn’t really gone anywhere lower than where it was seven sessions back. It is playing around in this 22,500 ballpark, and today was another day where this spring back has come.
Nifty Next 50
Nifty closed in the positive while Nifty Jr. remained absolutely flat.
Nifty Mid and Small Cap
Mid caps were 0.32% down and small caps were 0.17% down, staying very much in the same ballpark as they have been in for the past few days.
Bank Nifty
Nifty Bank rose 0.19%.
GOLD
Gold was smashed down 3% but is still not at a two-day low, so perhaps an uptrend is still possible. The short term is positive right now, while the midterm and long term are negative and positive respectively.
SILVER
Silver was also down 5.5% today and is not looking good actually.
Advance Decline Ratio
Regarding advanced decline trends, there was a very poor start, but by the end of the day, there was almost equal advance decline at 231 to 268, which is not so bad.
Heat Maps
The Nifty heat map was largely a mixed bag and mostly red, but IT stocks performed really well. Others were sort of near about the plus or minus 2% range.
In the Nifty Next 50, some stocks like Dmart, LTM, Adaniower, Bosch, Vedanta, and DLF did really well, while some stocks like Pidilite, Torrent Pharma, Hindzinc, Mazdoc, and Mothoot were losing.
Movers Of The Day
Movers of the day include LatentView, which was up 20% on investing in an AI startup, and Vmart, which was up 12% on a revenue jump to 24% on same-store sales.
Sectoral Overview
Within sectors, IT stocks did really well, rising 2.6%, while pharma and oil and gas hit minus 0.8% and minus 0.9%. Other sectors were not too far from where they were yesterday. Forge, LTM, and Emphasis were some of the IT stocks that are moving.
Sector of the Day
Nifty IT Index
It appears the IT sector has a shallow bottoming happening; it is not going down further with the market. Somewhere in this 29,000 to 31,000 range, the IT index is bottoming out.
U.S. Market
U.S. markets are also doing all right for the second day in a row. Intel Corporation rose 8.8%, and Boeing, Eli Lilly, Alphabet, and AMD all did well. Indices were also up half a percent to 1% for the day.
On the NASDAQ 100 heat map, Google was up 3%, Tesla was up 2.5%, and all the semiconductor stocks like ASML, AMD, Intel, and MU performed quite well in that space.
