Where is the market headed?
It has been another incredibly difficult day as the markets show no signs of wanting to move upward. Oil prices have started to climb again and an escalation in the war is very much back on track, which is causing significant damage to India.
Market Overview
In terms of where the market is headed, the Nifty is currently wobbling around the 23,000 mark. We closed at 22,800 today, which represents a 2% drop. While the bounce from two days ago technically remains a potential recovery point in the very short term, it has not been completely overshadowed by today’s fall. However, we have not been able to pull away from the levels between 22,500 and 22,800, remaining close to the recent three-day bottom.
Nifty Next 50
The severity of the decline was felt across all indices. The Nifty Junior saw a sharp fall of 2.48%, offering no relief.
Nifty Mid and Small Cap
Mid-caps were down 2.1% and the Bank Nifty fell by 2.67%. Public sector banks were particularly hard hit today. Interestingly, small-caps fell the least at 1.89%, which acts as a small silver lining in an otherwise dark session.
Bank Nifty
GOLD
Meanwhile, gold and silver remained relatively flattish, rising 1.6% and 1.5% respectively without making any real directional moves.
SILVER
Advance Decline Ratio
The Nifty 500 advance-decline ratio was heavily skewed toward declines, with 442 stocks falling against only 57 advances.
Heat Maps
The Nifty heat map was dominated by red. HDFC Bank took a major hit of 3.3%, and State Bank of India dropped almost 4%. Reliance industries fell 4.6% as the government reduced excise but increased taxes on the export of refined products.
Other major players like Unilever fell 2.8%, while Maruti, Mahindra and Mahindra, Bajaj Finance, and Shriram Finance also lost value. The market may be factoring in a potential rate hike as inflation could spike again.
Additionally, the Rupee is collapsing, recently spotted at 94.6 and rapidly moving toward the 95 mark.
The Nifty Next heat map showed no greens at all, leaving very little positive news to report.
Movers Of The Day
However, HEG emerged as a mover of the day, shooting up 13.75%. Graphite electrode companies are seeing price hikes due to supply chain breakdowns and price increases announced by American peers. Acme Solar also saw gains as investors rethink solar companies.
Sectoral Overview
Looking at sectoral trends, Central PSEs managed to avoid today’s heavy losses, but Nifty PSU Banks lost 3.8% due to the performance of State Bank of India and Bank of Baroda. Real estate fell 3.1%, Nifty Auto lost 2.8%, and Capital Markets dropped 2.8%, while Pharma and IT were hit slightly less than other sectors.
Sector of the Day
Nifty PSU Bank Index
In the PSU banking space, PNB, Canara Bank, Indian Bank, UCO Bank, and Bank of Baroda were all badly hit.
U.S. Market
Looking at the previous session in the US markets, there were sharp hits on Meta, Advanced Micro Devices, Intel, Palantir, and Nvidia. Some of these stocks may be part of the Weekend Investing US stock strategy, though these are certainly not recommendations.
US indices also struggled, with the Nasdaq 100 losing 2.3%, the Dow Jones losing 1%, and the S&P 500 down 1.5%. The Nasdaq heat map provided no place to hide, with Nvidia, Google, Meta, and Amazon all losing big.
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