NIFTY started the day at 17,066 with a gap-down of 33 points. The index moved 200+ pts to the day low at 16,828 and recovered towards 17,000. NIFTY closed the day at 16,988, down by 111 points or 0.65%. 

BANK NIFTY started the day at 39,512 with a gap-down of 86 points. The index took support from yesterday’s low and recovered 1%. The index closed at 39,361, down by 236 pts or 0.6%.

NIFTY Metal (-2.3%), NIFTY PSU Bank (-1.7%), and NIFTY IT (-1.4%) fell heavily today. NIFTY FMCG (+0.79%) and NIFTY Media (+0.12%) were the only indices that closed in the green.

Major Asian markets closed deep in the red. European markets are currently trading in the green.

Today’s Moves

Hindustan Unilever (+2.6%) was NIFTY50’s top gainer. The company recently said it is betting on the health & well-being space as the “sunrise market” of the future.

Atul Auto surged after veteran investor Vijay Kedia raised the stake in the company to 8.4

Shares of Reliance Industries (-0.98%) hit another 52-week low of Rs 2,183. The stock is down for the eighth straight day, its longest losing streak since December 2014!

Bajaj Finserv (-4.2%) fell heavily and was Nifty50's top loser.

Metal stocks JSW Steel, Vedanta, Welspun Corp, SAIL, Jindal Steel, JSL, Tata Steel, Hindalco, Adani Enterprises, and NALCO closed 1.1 to 4% lower.

Markets Ahead

Is the market going to take some rest from the current fall? I don't see any recovery indication and there is no reason for another fall. 

The reasons are: 

• Bank Nifty took excellent support from the previous day's low and is continuously testing the 39,400-500 resistance.

• Nifty took support from the downtrend channel and the horizontal support near 16,800.

• The market has already absorbed too much negativity for many days and we should see some buying.

Nifty has good resistances at 17,045, 17,130, and 17,250. Bank Nifty’s day candles from Thursday are showing bull power as it recovers well from the day low again and again.

My biggest concern is Reliance. It has fallen 20% from the recent high. Will it enter a bearish phase? To get an answer, I will watch the support at 2170 in the coming days!