Nifty Falls Below 18,100 as HDFC Shares Drop Up to 6%

At the close, the Nifty 50 was at 18,069.00 down by 1.02%

NSE Nifty 50, commenced trading on a negative note and experienced a decline of 1.02 percent throughout the day, ultimately concluding in the red zone. Furthermore, the Nifty index remained below the 18100 mark, signifying a bearish sentiment in the stock market.

The bears regained control of the market, causing the Nifty index to close the last day of the week with a 1% loss. Despite its volatility throughout the week, the Nifty concluded with a flat performance. The decline on Friday was due to profit-booking around the 18200 levels, leading to a drop back to the previous week’s closing levels. The short-term trend remains positive as long as the index stays above 18000, but a drop below this level may lead to consolidation within the range of 17500-18000. Conversely, a rebound from the 18000 levels may spur a buying spree, pushing the Nifty beyond 18200 levels once again.

Bank Nifty: Down by 2.34%

Bank Nifty index also opened in the red zone, registering a decline of 2.34 percent throughout the day. Eventually, the index concluded in the negative territory, settling at 42,661.20. Similarly, BSE Sensex, experienced a downward trend, with a decline of 1.13 percent throughout the day, ultimately concluding at a low of 61,054.29. These numbers indicate a bearish sentiment in the Indian stock market, with investors possibly exercising caution amid uncertainties and market volatility.

The financial sector saw a decline due to the weakness in stocks of Housing Development Finance Corp and HDFC Bank, resulting in the erasure of weekly gains. Ongoing concerns surrounding the U.S. banking sector also contributed to this decline.

On May 5, a severe wave of selling in banking, metals, and financial services stocks caused the market to plummet by over 1% from the previous day’s close. This intense selling resulted in a significant erosion of investor wealth, as evidenced by a decrease in the market cap of listed companies by Rs 1.42 lakh crore.

Bank Nifty

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

The gainers included ICICI Bank with a 0.58% increase. On the other hand, the biggest losers in the sector included Federal Bank with a 8.18% decline, HDFC Bank with a 5.84% decline, IndusInd Bank with a 4.57% decline, Bandhan Bank with a 1.89% decline and Punjab National Bank with a 1.87% decline. These results suggest that some banking stocks not performed better for the day.

Buzzing

Titan Company Ltd. saw a rise in share price by 2.34% from the previous close of Rs 2,670.40, with the last traded price of the stock at Rs 2,732.90. Over the past three years, the company’s returns amounted to 201.08%, significantly outperforming the Nifty 100, which returned 89.77%. Additionally, in the fiscal year ending on March 31, 2022, the company’s interest expenses were less than 1% of its operating revenues, while employee costs accounted for 4.68%.

Maruti Suzuki India Ltd. witnessed a rise in share price by 1.68% from its previous close of Rs 8,800.60, with the last traded price of the stock at Rs 8,948.65. In the last 18 years, only 1.72% of trading sessions saw intraday gains higher than 5%. The company’s annual revenue growth of 32.9% has outperformed its 3-year CAGR of 14.7%. However, over a 3-year period, the stock generated a return of 82.21%, falling short of the Nifty Auto’s return of 142.48% for the same period.

Advance Decline Ratio

Today, the advance-decline ratio was 0.56, and the market breadth was negative. The volatility index India Vix increased by 4.79 percent to settle at 12.30 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 816
Decliners – 1447
52Wk High –  85
52Wk Low – 11
High Band Hitters – 63
Low Band Hitters – 25
200d SMA – 17678
50d SMA – 17525
20d SMA – 17812

Top Gainers and Losers Stocks

The top gainers were Titan (+2.31%), Maruti (+1.70%), UltraTech Cement (+1.65%), Nestle India (+1.50%), and Apollo Hospital (+1.13%).

The top losers were HDFC Bank (-5.84%), HDFC (-5.56%), IndusInd Bank (-4.57%), Hindalco (-2.36%), and Tata Steel (-2.12%).

Top Gainers and Losers Sector

The top gainers sectors were Consumer Durables (+1.11%), Auto (+0.40%), and FMCG (+0.27%).

The top losers sectors were Financial Services (-2.34%), Media (-1.74%), Metal (-1.49%), IT (-0.59%) and Oil & Gas (-0.53%).

The Nifty Midcap 50 was down by 0.94 percent, while the Nifty Small Cap 50 was down by 0.87 percent on the day.

The Nifty Midcap 50 index currently closed at 9,036.80, while the Nifty Small Cap 50 index currently closed at 4,439.55.

SECTORS – NOTABLE ACTION
CONSUMER DURABLES +1.11%
AUTO +0.40%
FMCG +0.27%
FINANCIAL SERVICES -2.34%
MEDIA -1.74%
METAL -1.49%

Stocks Ban List

(SEBI) F&O ban list (GNFC open at 592.00 and close at 597.45), (MANAPPURAM open at 111.00 and close at 105.55) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned GNFC and MANAPPURAM from trading in the futures and options (F&O) segment of the stock exchange.

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.

Daily Pivots

As per the above pivots data, 18000 to 18180 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty50 Surges with 166-Point Gain, Resumes Upward Momentum
Nifty’s Short-Term Trend Cools off after a Bullish Move
Indian Equity Markets Close Higher Amidst Mixed Global Trends

This article is only for educational purposes and is not an investment advice.