Midcap Sell-Off Continues. HDFC Twins Keep NIFTY in Green - Post Market Report

Markets open the week in green with HDFC Twins looking strong.

NIFTY opened the week at 15,334, nearly flat. After opening, the index took support from its 52-week low and continued Friday’s consolidation. NIFTY closed the day at 15,350, up by 56 points or 0.37%.

BANK NIFTY started the day with a slight gap-up at 32,873. Yesterday’s support at 32,480 was taken and the index bounced back twice. Bank Nifty ended the day at 32,684, down by 58 points or 0.18%.

NIFTY FMCG (+1.8%) and NIFTY Finserv (+0.96%) moved up. NIFTY Metal (-3.9%), NIFTY Media (-2.5%) and NIFTY PSU Bank (-2.4%) closed in the red.

Major Asian markets closed mixed in the day. European markets are all trading in the green.

Today’s Moves

The Bombay High Court has restricted Sebamed from comparing to that Hindustan Unilever’s Dove, Pears and Lux. The stock closed as the Nifty 50 top gainer, up 4%. 

Other FMCG stocks - Dabur (+3.3%), GodrejCP (+4.6%), Marico (+2.4%) and Nestle (+1.9%) also moved up.

HDFC Bank (+2.5%), HDFC (+4%) and Infosys (+1.9%) helped Nifty to close in the green, contributing 93 pts to the index. 

But Reliance (-1.8%) fell today. 

ONGC(-5%), BPCL (-1.6%), GAIL (-5.6%), ATGL (-7.4%), Reliance (-1.8%), OIL (-10.8%), MRPL (-18.9%), Chennai Petro (-15.2%) and IOC (-1%) closed in the red, following the weakness in crude oil prices.

Gaining from the crude oil fall, Asian Paints (+3.1%), Berger Paints (+3.2%) and Nerolac (+3%) performed well.

While Nifty went into consolidation, Nifty Metal (-3.9%) was getting hammered in the background. Coal India (-3.1%), Hindalco (-3.6%), Hind Copper (-9.4%), Hind Zinc (-3%), Jindal Steel (-4.8%), NMDC (-3.6%).

National Aluminum (-6.8%), SAIL (-5.1%), Tata Steel (-5%), Vedanta (-12.6%), and Welcorp (-8.6%) took the hit.

Metal stocks have been falling since Govt imposed export duty.

Cement related stocks - UltraTech Cement (+3%), Shree Cements (+2%), Ramco Cements (+2.4%), JK Lakshmi (+3%) and Grasim (+2%) moved up.

Adani Wilmar closed in the 5% lower circuit as the company slashed the prices of its edible oils by Rs 10. 

DGCA has started an investigation on SpiceJet Patna- Delhi flight fire and two other air incidents, involving the IndiGo (-5%) and SpiceJet (-6.6%) flights.

All the PSU Banks closed in the red ahead of Finance Minister's review meeting with the chiefs. Bank Of Baroda (-4.1%), Canara Bank (-3.4%), IOB (-3.7%), J&K Bank (-4.3%) fell the most. SBIN moved down by 1.4%.

Markets Ahead

Consolidating Nifty and Bank Nifty are the most dangerous ones because they are really close to important support zones. Keeping 15k and 14,750 as Nifty supports in mind, we really need just a quick movement on the downside to reach there. 

Even though Nifty and Bank Nifty were resting, Nifty Midcap100 (-2.2%) and Smallcap100 (-3.2%) continued the fall indicating that the market is still in a mood for a sell-off.

Bank of America said that the US economy has a 40% chance of being in a recession next year as inflation remains high. The U.K is also having a recession fear. 

2 days of confusing green candles in NIFTY. If recovery does occur, the level to look out for would be 15,750 on the upper side.

Do you think the market will reverse from here? Let us know in the comments section of the marketfeed app!

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