Where is the market headed?
the new month has started on a hopeful note with markets bouncing back nicely on the 1st of September. This recovery has come on the back of strong GDP numbers for the last quarter and news that many of Trump’s tariff orders are not passing through the courts. Some brokerage reports even suggest that by the end of this calendar year, at least 25% of tariffs may be removed. With this optimism, the market has moved higher and perhaps an interim bottom has been made, though it is still early to confirm.
Market Overview
The Nifty gained 0.81% today. It may just be a dead cat bounce, as the index has not yet crossed the two-day high, which is seen as a sign of trend reversal. But the advances versus declines ratio looks very positive, suggesting some more upside could be seen in the near term.
Nifty Next 50
Nifty Junior moved up 1.41%.
Nifty Mid and Small Cap
Mid caps gained 1.74%, and small caps added 1.4%.
Bank Nifty
Nifty Bank also went up by 0.65%. While the overall structure of the market is still weak, today’s build-up looks promising.
GOLD
Gold, meanwhile, has taken off in a big way. Prices have jumped from ₹9,800 per gram to ₹10,400 per gram within just a few days. On the dollar chart, a breakout above 3450 has already happened, and the next target of 3500 is now in sight. Beyond that, gold looks set for clear skies, continuing its strong uptrend.
Advance Decline Ratio
The breadth of the market was very healthy today, with 423 advances against only 78 declines. Importantly, this strength lasted the entire day and was not just a late surge, which gives confidence for the days ahead.
Heat Maps
The heat map was almost fully green with stocks like Mahindra & Mahindra, Bajaj Auto, Tata Motors, Power Grid, and Asian Paints leading the charge. Capital goods, PSUs, and finance companies also showed strong moves.
Mover Of The Day
Ola Electric stood out with another massive 16% jump, taking the stock from ₹40 to ₹62 within days. Bajaj Auto rose nearly 4% after releasing good August sales numbers.
Sectoral Overview
Sectoral trends were also encouraging, with capital markets up 3.2%, autos higher by 2.8%, and defense gaining 2.2%. These were the sectors that had been hit hard recently, so the bounce suggests a possible U-turn. Defensive sectors like pharma and FMCG did not participate, which is normal on a day when the market shows risk appetite.
Sector of the Day
Nifty Capital Market Index
Nifty Auto Index
Tweets Of the Day
One curious development is the opposite moves of gold and bitcoin. After Powell hinted at possible interest rate cuts, gold shot up but bitcoin collapsed from 118k to 109k. This shows how bitcoin continues to move closely with US tech stocks, raising questions about its true decentralization.
