Killer Day! Adani Effect? Post-Market Analysis
NIFTY opened the day at 17,877, with a gap-down of 14 points. The flat opening did not indicate what was coming up, and the index was freaky volatile during the first one and a half hours. The index fell nearly 400 pts to the day's low and then recovered 100+ pts. Nifty closed the day at 17,604, down by 287 points or 1.61%.
BANK NIFTY started the day at 41,382 with a gap-down of 265 pts. The index opened below the swing low and it gave not much respect to the historic consolidation zone around 40,800. It fell 1500 pts to the day low at 40,148. Bank Nifty closed the day at 40,345, down by 1302 pts or 3.1%.
FIN NIFTY started the day at 18,372 with a gap-down of 115 pts. The index opened far below the major support near 18,500. At one point, the index broke 18,000, but 17,900 acted as support. Fin Nifty closed the day at 18,030, down by 457 pts or 2.48%.
Nifty Bank (-3.1%), Nifty Finserv (-2.4%), Nifty Metal (-4.6%), and Nifty PSU Bank (-5.4%) fell heavily. Nifty Auto (+1%) closed with gains.
Major Asian Markets closed in the green. European markets are trading flat.
Tata Motors (+6.3%) closed as the Nifty 50 Top Gainer after it posted quarterly profits during Q3, the first time in many quarters.
Adani Ent (-18.5%) and Adani Ports (-16.2%) closed as the Nifty 50 Top Losers.
Reports say that SEBI is studying the Hindenburg report on the Adani group. SEBI is already doing a probe into offshore fund holdings of the Adani Group.
Adani Green (-20%), Adani Power (-5%) Adani Trans (-20%), ATGL (-20%), and AWL (-5%) also moved down.
The market regulator has tightened scrutiny of recent deals done by the Adani group. Ambuja Cements (-17.3%), and ACC (-13.2%) ended in the red.
SBI (-5%), ICICI Bank (-4.4%), IndusInd Bank (-3%), Kotak Bank (-2.1%), and Axis Bank (-2%) featured in the Top losers list.
Bajaj Auto (+5.9%) continued its power.
Dr Reddy (+2.6%), Jindal Saw (+5.8%), and DLF (+1.1%) closed in the green after posting Q3 results.
PVR (+4.5%) closed in the green, Pathan effect?
Reliance (-1.9%) Jio added 14.26 lakh users in November as compared to 14.14 lakh users in October.
Airtel (-0.26%) added 10.56 lakh users vs 8.05 user addition in October.
Dixon(-19%) moved down on the revenue guidance cut.
Nifty is currently trading at the levels of last October, giving up the gains made in many months. Can you believe it?
I will be watching how Nifty acts around the 17,350-450 zone.
Even if the fall continues, I expect Bank Nifty to take strong support from 38,500.
Nifty Bank fell more than 5% in just four days, the biggest weekly fall in 11 months.
We have the Union budget next week. So the market is very unclear and making an analysis today won’t be good. Let's trade according to the market actions. Share your thoughts in the comments section of the marketfeed app!