How are the Markets Looking ?
Today was an unpredictable day in the markets! We witnessed a dramatic downturn right at the start, with the Nifty plunging below 21,900 in the first hour. However, a remarkable recovery ensued in the last two and a half hours, with the Nifty climbing from 21,950 to over 22,200, nearly setting a new high by the close but just stopping short of surpassing the previous high.
This significant recovery indicates a potential shift, suggesting that the market’s attempted breakout, which was initially rebuffed yesterday, may now be causing a rethink among bears. The volatility is notably shaking up short-term traders, though it seems to have little impact on long-term investors.
Nifty Heatmap
The Nifty heat map was led by ITC, up by 2.7%, and supported by a surge in IT stocks. This comes in the wake of Nvidia’s earnings report, which exceeded expectations and resulted in a pre-market jump of 13% in US markets. Nvidia’s performance has had a ripple effect, boosting IT stocks like Wipro, Infosys, TCS, and HCL Tech significantly.
Sectoral Overview
On the other hand, the auto sector also saw a substantial upturn, with Maruti, Bajaj Auto, Aisha Motors, Mahindra & Mahindra, and Tata Motors all posting impressive gains. However, HDFC Bank lagged, dropping by 1.5%, alongside a downtrend in other major banks like State Bank of India and Kotak Bank, which were the only sectors in the red today.
Mid & Small Cap Performance
Mid-caps showed resilience, bouncing off the support line at 17,800, marked by a long-legged candle, a pattern often followed by a directional shift. Small caps mirrored this pattern, indicating strong buying at lower levels, suggesting equilibrium and a shakeout of weaker positions.
Nifty Bank Overview
Nifty Bank remained robust, holding support at 46,400, signaling strength and potential for further gains. The IT index, buoyed by Nvidia’s success, and the auto index’s rally highlight sectors brimming with liquidity and confidence.
Sectors of the Day
The IT index is on the rise, and with Nvidia’s stock expected to climb tonight, we can anticipate even more momentum and tailwinds for this sector. This ensures a positive outlook for the IT index moving forward. Similarly, the Nifty Auto sector is showing significant strength. After a period of consolidation, it continues to ascend, indicating an influx of liquidity and an absence of weakness in the charts, highlighting the robustness of this sector.
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