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The trading day of 9th May 2024 was terrible and painful for Nifty 50 and Bank Nifty index. A fall of 345 points was seen in Nifty 50 and a fall of 533 points in Bank Nifty. Nifty 50 opened 59 points lower today at 22257 compared to yesterday and did not recover throughout the trading day. The Nifty 50 index failed to turn green even once and ended the day with a fall of 1.55%.
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| NIFTY 50 CHART |
NIFTY 50 ANALYSIS
Today was the weekly expiry of the Nifty 50 index, due to this also extra pressure was seen on the Nifty. Nifty 50 was trying to hold the level of 22300 for two days but today it finally broke this level. By the end of the trading day, Nifty also broke the important level of 22000.
The biggest disaster of the Nifty 50 index was the stock of Larsen & Turbo which fell by 6% and closed at 3275. Larsen & Turbo shares fall by 64 points.
From the image below, you will know which stocks made Nifty 50 fall and which helped it rise.
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| NIFTY 50 PULLERS & DRAGGERS |
BANK NIFTY ANALYSIS
Bank Nifty also had more or less the same condition. Bank Nifty opened 33 points lower today compared to yesterday. Bank Nifty tried to remain in the green for the first few minutes of the trading day, but the pressure of Nifty did not allow Bank Nifty to stay above.
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| BANK NIFTY INDEX CHART |
By the end of the trading day, Bank Nifty closed at 47487 with a fall of 1.11%. Talking about private banks, huge selling was seen in big private banks. ICICI Bank - 11 points, HDFC Bank - 32 points, Axis Bank - 10 points, Kotak Bank - 7 points and IndusInd Bank - 38 points.
Among small private banks, Bandhan Bank increased by 2.70 points, Federal Bank by only 0.25 points, and AU Small Finance Bank by 4.80 points.
Among public sector banks, SBI (9.20) and Bank of Baroda (0.05) closed in the green, and Canara Bank (- 12.45) and PNB (- 3.10) witnessed a decline.
SECTOR ANALYSIS
Talking about sector performance, today only the auto sector (0.78%) showed positive results, and selling was seen in all other sectors. The biggest falling sectors were Nifty Energy -2.97%, Nifty Metal -2.87% and Nifty FMCG - 2.47%.
You can get an idea of today's performance of each sector from the image given below.
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| SECTOR PERFORMANCE |
NIFTY MIDCAP & NIFTY SMALL CAP ANALYSIS
There is heavy selling in Nifty Midcap and Nifty Small Cap for 2 days. Nifty Midcap fell 1.85% and Nifty Small Cap fell 2.83%. Nifty Midcap closed at 49109 with a fall of -927 points and Nifty Small Cap closed at 15995 with a fall of -465 points.
In Nifty Small Cap, the number of shares falling by 3% was 47, the number of shares falling 3% to 5% was 35 and the number of shares falling more than 5% was 6.
In Nifty Mid Cap, the number of shares falling by 3% was 72, the number of shares falling 3% to 5% was 20 and the number of shares falling more than 5% was 3.
In Nifty Mid Cap, the number of shares rising by 3% was 4, the number of shares rising 3% to 5% was 1 and the number of shares falling more than 5% was 0.
In Nifty Small Cap, the number of shares rising by 3% was 11, the number of shares rising 3% to 5% was 1 and the number of shares falling more than 5% was 0.
FII & DII FLOWS
FII is not desisting from selling, FII is continuously selling shares in the market. The day of 9th May was also no different, on 9th May FII sold Rs 6994 crore in cash.
On the other hand, DII is continuously pouring money into the market. Even on 9th May, DII bought shares worth more than Rs 5400 crore.
CONCLUSION
What were the reasons for such heavy selling in the market today?
1. Markets are cautious about the results of Lok Sabha Elections 2024
2. Markets are at all time high hence profit booking is taking place.
3. In recent times, RBI has taken strict actions on some banks and NBFCs, the effect of which is visible in the market.
Friends, I understand these few reasons due to which there is a selling phase going on in the market for the last few days. Now only time will tell how long this phase will continue. But one thing is sure that the market is alert about the Lok Sabha elections 2024 and whatever result comes, it will have a deep impact on the market. Before the results of Lok Sabha Elections 2024 are to be declared on 4th June, either the market wants to be very light and ready for the results or the market is guessing something which we and you are not aware of.
Let us see how the market moves in the future. If you are a trader or investor, then before taking any step, definitely contact your financial advisor and invest money in the market only after taking advice.
