Nifty Succumbs to Selling Pressure on Fed’s Hawkish Stance

At the close, the Nifty 50 was at 18,688.10 down by 0.36%

During today’s trading session, the NSE Nifty 50 exhibited a modestly higher opening, but subsequently experienced a decline of 0.36 percent, ultimately closing in the red. The index concluded the day below the 18700 mark, indicating a negative performance overall.

The domestic market is currently responding to the hawkish commentary from the Federal Reserve, which suggests the possibility of two more rate hikes later this year. It is important to note, however, that the Federal Reserve has decided to hold off on any immediate rate adjustments at this time. This decision may have a significant impact on the market in the coming months.The hawkish remarks from the Federal Reserve regarding the potential for two more rate hikes this year are currently affecting the domestic market. It is worth noting that the Federal Reserve has chosen not to make any immediate rate changes at this time, which could have a significant impact on the market in the upcoming months.

Bank Nifty: Down by 1.24%

The Bank Nifty commenced the trading session on a lower note, experiencing a decline of 1.24 percent throughout the day and closing in the red at 43,443.60. Similarly, the BSE Sensex also witnessed a negative trend, decreasing by 0.49 percent and concluding the day in the red at a lower level of 62,917.63.

Federal Reserve officials have responded to persistent concerns about inflation exceeding their target range by increasing their rate projections by 47.5 basis points for the end of 2023, bringing it to 5.6%. Although the benchmark index has shown some weakness, there is a significant level of buying interest, particularly in the Nifty Mid-cap index, which is trading at record levels.

It is important to note that the Federal Reserve’s decision to raise rates is a proactive measure to prevent inflation from spiraling out of control. By increasing rates, the Fed is signaling to the market that it is committed to maintaining price stability and ensuring that the economy remains on a sustainable growth path.

Furthermore, the observed buying interest in the Nifty Mid-cap index is a positive sign for the market, indicating that investors are optimistic about the future prospects of mid-cap companies. This could potentially lead to increased investment and job creation, which would be beneficial for the overall economy.

Bank Nifty

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

The gainers included IDFC First Bank with a 2.93% increase, AU Bank with a 0.62% increase, and Axis Bank with a 0.09% increase. On the other hand, the biggest losers in the sector included Punjab National Bank with a 2.80% decline, Bandhan Bank with a 2.16% decline, Bank of Baroda with a 2.11% decline, Federal Bank with a 1.89% decline, and IndusInd Bank with a 1.84% decline. These results suggest that some banking stocks not performed better for the day.

Buzzing

The streak of four consecutive gains of the Indian rupee against the U.S. dollar has come to an end due to the widening of the domestic trade deficit to a five-month high and the U.S. Federal Reserve’s indication of further rate hikes. These factors have had a significant impact on the currency market, making it crucial for investors to stay informed and vigilant when making decisions.

During the initial hours of trading on Thursday, the Indian rupee experienced a 16 paise devaluation against the US dollar, bringing its value down to 82.21. This drop is due to the robustness of the American currency, which was reinforced by a more forceful approach from the US Federal Reserve.

At the start of the trading session at the interbank foreign exchange, the domestic unit was observed to be at 82.16. However, it experienced a decline and dropped to 82.21, indicating a decrease of 16 paise from its previous closing value. This depreciation occurred simultaneously with a downward trend in domestic equities, which added to the overall negative sentiment.

The US Federal Reserve has chosen to keep interest rates at 5-5.25 per cent, but the accompanying commentary suggests the possibility of two more rate hikes this year. This statement has boosted the dollar index to 103.20, indicating increased confidence in the US currency. The decision to maintain rates reflects the Federal Reserve’s confidence in the US economy, and the hawkish commentary reinforces the belief that the economy will continue to grow.

Advance Decline Ratio

Today, the advance-decline ratio was 0.71, and the market breadth was negative. The volatility index India Vix decreased by 0.73 percent to settle at 11.08 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 972
Decliners – 1374
52Wk High –  143
52Wk Low – 13
High Band Hitters – 81
Low Band Hitters – 43
200d SMA – 17892
50d SMA – 18175
20d SMA – 18532

Top Gainers and Losers Stocks

The top gainers were Apollo Hospitals (+3.95%), Divi’s Laboratories (+2.64%), Dr. Reddy (+2.32%), Cipla (+1.98%), and BPCL (+1.45%).

The top losers were Hero MotoCorp (-3.58%), Wipro (-1.93%), IndusInd Bank (-1.84%), SBIN (-1.70%), and Kotak Bank (-1.64%).

Top Gainers and Losers Sector

The top gainers sectors were Pharma (+1.42%), FMCG (+0.54%), Consumer Durables (+0.48%), Auto (+0.17%), and Oil & Gas (+0.14%).

The top losers sectors were Media (-1.00%), Financial Services (-0.98%), Realty (-0.76%), IT (-0.54%), and Metal (-0.19%).

The Nifty Midcap 50 was down by 0.17 percent, while the Nifty Small Cap 50 was up by 0.26 percent on the day.

The Nifty Midcap 50 index currently closed at 9,803.35, while the Nifty Small Cap 50 index currently closed at 4,788.30.

SECTORS – NOTABLE ACTION
PHARMA +1.42%
FMCG +0.54%
CONSUMER DURABLES +0.48%
MEDIA -1.00%
FINANCIAL SERVICES -0.98%
REALTY -0.76%

Stocks Ban List

(SEBI) F&O ban list  (MANAPPURAM open at -120.90 and close at -119.65), (ZEEL open at -195.40 and close at -186.60), (DELTACORP open at -243.65 and close at -243.65), (INDIACEM open at -227.25 and close at -222.55), (IEX open at -123.50 and close at +124.85), (BHEL open at -84.15 and close at +84.55), and (IBULHSGFIN open at -113.50 and close at -113.15) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned MANAPPURAM, ZEEL, DELTACORP, INDIACEM, IEX, BHEL, and IBULHSGFIN 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.
L&TFH, BALRAMCHIN, HAL, HINDCOPPER, GNFC, RBLBANK, TATACHEM and PNB Face Possible Entry in Ban List.

Daily Pivots

As per the above pivots data, 18630 to 18780 is the Nifty 50 trading range.

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