Nifty’s Short-Term Trend Cools off after a Bullish Move

NiftyTrader • May 3, 2023

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Index	Price	Change	% Chg
NIFTY 50	18,089.85	-57.80	-0.32%
NIFTY BANK	43,312.70	-39.40	–0.09%
BSE SENSEX	61,193.30	–161.41	–0.26%

Daily closing price, change and % change of benchmark indices.

At the close, the Nifty 50 was at 18,089.85 down by 0.32%

National Stock Exchange’s benchmark index, the Nifty 50, commenced its trading session on a low note, and as the day progressed, it experienced a decline of 0.32 percent. By the end of the trading day, the Nifty 50 had closed in the red zone, indicating a negative trend in the stock market. Notably, the index ended below the crucial mark of 18100, which is likely to have an impact on market sentiment and investor behavior.

On Wednesday, the major benchmark indices in India showed signs of weakness, following negative cues from the international stock markets. This came ahead of the US Federal Reserve’s policy outcome announcement, which was scheduled to take place later in the day. The uncertainty surrounding the outcome may have contributed to the bearish sentiment in the market, as investors adopted a cautious approach.

In the broader market, the Adani Group, one of India’s leading conglomerates, was in the spotlight, as investors analyzed its Q4 earnings report. Similarly, airline stocks were also closely monitored, as news emerged regarding Go First, a budget airline that faced financial troubles. These developments may have influenced the market sentiment, as investors sought to adjust their portfolios based on the news.

Foreign Institutional Investors (FIIs/FPIs) purchased shares worth Rs. 7,498.83 crore and sold shares worth Rs. 6,160.83 crore, resulting in a net value of Rs. 1,338.00 crore. Meanwhile, Domestic Institutional Investors (DIIs) bought shares worth Rs. 5,390.76 crore and sold shares worth Rs. 5,974.75 crore, resulting in a net value of -Rs. 583.99 crore.

Bank Nifty: Down by 0.09%

Bank Nifty, which is a benchmark index that tracks the performance of banking sector stocks, opened in the red zone, reflecting a negative market sentiment. As the day progressed, the index experienced a slight decline of 0.09 percent, eventually closing in the red at a level of 42,312.70. This indicates that the banking sector stocks did not perform well in the market today.

Similarly, the BSE Sensex, which is another important index that tracks the performance of thirty large and well-established companies in India, also witnessed a negative trend. The Sensex index was down by 0.26 percent during the trading session, reflecting a bearish market sentiment. As the trading day progressed, the Sensex index dropped to a low of 61,193.30 before eventually closing in the red at that same level.

The IT sector emerged as the biggest loser on the sectorial front, declining by 1.00%. Within this sector, L&T Technology Services Limited experienced a loss of 1.91%, followed by LTIMindtree Limited with a loss of 1.50%, Persistent Systems Limited with a loss of 1.43%, and Tech Mahindra Limited with a loss of 1.36%.

On the other hand, FMCG emerged as the biggest gainer, increasing by 0.78%. Among the companies in this sector, Godrej Consumer Products Limited witnessed a gain of 1.69%, followed by Hindustan Unilever Limited with a gain of 1.36%, Varun Beverages Limited with a gain of 1.19%, and United Spirits Limited with a gain of 0.97%.

Bank Nifty

The Nifty Banking sector had some gainers and some losers for the day.

The gainers included Federal Bank with a 0.92% increase, IDFC First Bank with a 0.55% increase, Kotak Bank with a 0.33% increase, HDFC Bank with a 0.31% increase and AU Bank with a 0.29% increase. On the other hand, the biggest losers in the sector included Bank of Baroda with a 1.78% decline, Axis Bank with a 1.29% decline, State Bank of India with a 0.92% decline, Punjab National Bank with a 0.47% decline and IndusInd Bank with a 0.44% decline. These results suggest that some banking stocks not performed better for the day.

Buzzing

On May 3, Ambuja Cements’ shares witnessed a decline of more than 3 percent, following the company’s announcement of a standalone profit of Rs 502.4 crore for the quarter that ended in March FY23. This profit margin indicated a growth of 1.6 percent over the same period from the previous year. However, on a standalone basis, the revenue growth was only 8.4 percent YoY, amounting to Rs 4,256.3 crore for the quarter. Sales volumes, on the other hand, increased by 8 percent YoY to reach 8.1 million tonnes.

On Wednesday, shares of InterGlobe Aviation, which is the parent company of IndiGo, and SpiceJet witnessed a surge in their value following the news of Go First’s decision to opt for voluntary insolvency resolution proceedings and cancel all its flights for three days, starting from May 3.

On Wednesday morning, Brent crude oil prices dropped below the $76 per barrel mark, following a significant decline of more than 5 percent on Tuesday. As of 9.56 am on Wednesday, the July Brent oil futures stood at $75.30, indicating a slight decrease of 0.03 percent, while June crude oil futures on WTI were valued at $71.58, reflecting a decline of 0.11 percent.

Buzz

Hindustan Unilever Ltd. Over the past 18 years, intraday declines higher than 5% were observed in only 0.7% of trading sessions. The stock has generated a return of 11.69% over a period of three years, while Nifty 100 delivered a return of 78.92%. Moreover, the stock has provided investors with a return of 11.69%, outperforming Nifty FMCG which gave a return of 66.78% over the same period. On May 3, Hindustan Unilever Ltd.’s share price increased by 1.40% from its previous closing price of Rs 2,451.70. The stock’s last traded price stood at Rs 2,486.00.

Asian Paints Ltd. The last traded price of Asian Paints Ltd. stock was 2,929.70, up by 1.04% from its previous close of Rs 2,899.55. The company’s margins are heavily influenced by the price of crude oil, which is a major raw material for its derivatives. When the price of crude oil rises, it affects the margins and ultimately, the bottom line of the company. Over the past 3 years, the stock has returned 64.87%, as compared to Nifty 100’s return of 78.92%. Furthermore, the company has invested Rs 321.69 crore in activities, marking a YoY decrease of 41.27%.

Advance Decline Ratio

Today, the advance-decline ratio was 0.93, and the market breadth was negative. The volatility index India Vix decreased by 0.48 percent to settle at 11.84 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1098
Decliners – 1179
52Wk High – 76
52Wk Low – 10
High Band Hitters – 49
Low Band Hitters – 32
200d SMA – 17668
50d SMA – 17519
20d SMA – 17734

Top Gainers and Losers Stocks

The top gainers were Hindustan Unilever (+1.36%), Asian Paint (+1.08%), Tata Motors (+0.74%), UltraTech Cement (+0.70%), and ITC (+0.59%).

The top losers were Adani Enterprises (-4.42%), Adani Ports (-1.98%), ONGC (-1.98%), UPL (-1.73%), and Bharti Airtel (-1.54%).

Top Gainers and Losers Sector

The top gainers sectors were FMCG (+0.78%), Media (+0.28%), and Realty (+0.28%).

The top losers sectors were IT (-1.00%), Metal (-0.98%), Oil & Gas (-0.77%), Financial Services (-0.13%), and Consumer Durables (-0.04%).

The Nifty Midcap 50 was up by 0.04 percent, while the Nifty Small Cap 50 was down by 0.19 percent on the day.

The Nifty Midcap 50 index currently closed at 9,065.85, while the Nifty Small Cap 50 index currently closed at 4,453.15.

SECTORS – NOTABLE ACTION
FMCG +0.78%
MEDIA +0.28%
REALTY +0.28%
IT -1.00%
METAL -0.98%
OIL & GAS -0.77%

Stocks Ban List

The Securities and Exchange Board of India (SEBI) has not listed any stocks in the ban list for Futures and Options (F&O) trading today. This indicates that there are no restrictions on F&O trading for any stocks in the Indian market as of now.

A stock enters the Ban List if its MWPL is above 95%. Implying that, Ban List shows the Futures and Options (FnO ) stocks whose combined open interest in all FnO contracts for a given period crosses 95% of Market-Wide Position Limit.

It seems that GNFC may be at risk of being added to the ban list.