Market Reversal Strong Finish Near Day’s High!

NiftyTrader • July 6, 2023

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Index	Price	Change	% Chg
Nifty 50	19,497.30	+98.80	+0.51%
Nifty Bank	45,339.90	+188.10	+0.42%
BSE SENSEX	65,785.64	+339.60	+0.52%

At the close, the Nifty 50 was at 19,497.30 up by 0.51%

The Indian market remains on its record-breaking streak as the Nifty achieved yet another milestone, surpassing the 19,500 mark. This remarkable accomplishment compensated for the subdued performance witnessed in the preceding day.

Today, the NSE Nifty 50 commenced its trading session on a lower note but swiftly gained momentum, surging upwards throughout the day. It exhibited a commendable growth of 0.51 percent and ultimately concluded in positive territory, finishing in the green zone.

The Nifty commenced its trading session with a relatively stable opening, displaying resilience in maintaining the gains achieved in recent days. Following a two-day consolidation phase, the index exhibited a strong resurgence, concluding the day near its highest point. As the day progressed, the Nifty showcased increasing strength, reaching a new all-time high and signaling a significant upward breakout. The prevailing trend remains positive, with the index comfortably positioned above a critical short-term moving average (50DMA).

Foreign Institutional Investors (FII/FPI) made purchases worth 12,337.96 crore rupees and sales worth 9,696.91 crore rupees, resulting in a net value of 2,641.05 crore rupees. On the other hand, Domestic Institutional Investors (DII) engaged in buying activities worth 8,247.14 crore rupees and selling activities worth 10,598.80 crore rupees, leading to a net value of -2,351.66 crore rupees.

Bank Nifty: Up by 0.42%

At the start of the trading session, the Bank Nifty began on a bearish note but swiftly changed its course and experienced an upward surge. It achieved a notable growth of 0.42 percent and concluded the day in the positive territory, closing at a level of 45,339.90, firmly in the green. Similarly, the BSE Sensex displayed an impressive upward movement of 0.52 percent and wrapped up the day on a positive note, reaching a significant high of 65,785.64.

Exhibiting resilience, the Bank Nifty index demonstrated a robust performance, successfully maintaining the crucial support level of 45,000, which holds significant importance as a make-or-break point for the index. Despite initial underperformance, the index witnessed a notable boost due to the impressive momentum generated by Reliance Industries, supported by the noteworthy performance of auto stocks such as M&M and Tata Motors.

Within the Sectorial landscape, Realty emerged as the top gainer, with a significant increase of 2.25%. Notably, INDIABULLS REAL ESTATE LIMITED witnessed a gain of 3.75%, MACROTECH DEVELOPERS LIMITED rose by 3.36%, and OBEROI REALTY LIMITED experienced a gain of 2.90%. On the other hand, the IT sector faced a decline of 0.12%, with LTIMINDTREE LIMITED recording a loss of -1.28% and HCL TECHNOLOGIES LIMITED seeing a decrease of -1.04%.

Bank Nifty

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

The gainers included AU Bank with a 2.49% increase, Bandhan Bank with a 2.42% increase, Axis Bank with a 1.66% increase, Federal Bank with a 1.39% increase, and Kotak Bank with a 0.60% increase. On the other hand, the biggest losers in the sector included IndusInd Bank with a 0.83% decline, and Bank of Baroda with a 0.10% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Despite weak global cues, foreign investors persist in offering steadfast support to the domestic market, contributing to the continuity of the ongoing rally. Moving forward, there is an anticipation of India’s underperformance throughout the year reversing its course.

Amidst the prevailing market conditions, the mid- and small-cap segments have demonstrated superior performance, surpassing the benchmark index. The sectorial rally has been primarily led by realty, oil & gas, power, and consumption stocks, buoyed by promising provisional and economic data that point towards positive Q1FY24 results. However, global markets are currently witnessing a negative trend, influenced by the release of hawkish FOMC minutes and escalating tensions between the United States and China.

The Indian rupee exhibited weakness against the US dollar, trading below 82.48 and experiencing a decline of 0.20 rupees. This downward movement in the rupee can be attributed to the dollar index finding support at 102.80 after the release of minutes from a hawkish meeting.

Anticipating additional interest rate hikes in the United States, market participants opted for bearish positions on the rupee, as they foresee a positive outlook for the dollar.

With attention now turning to forthcoming data releases, such as the ADP Nonfarm Employment and Initial Jobless Claims data, market participants eagerly await additional insights into the Federal Reserve’s stance. It is anticipated that the rupee will trade within a range of 82.25 to 82.75 in the near term.

Buzzing

Mahindra & Mahindra Ltd. witnessed a notable increase in its share price, rising by 5.03% compared to its previous close of Rs 1,475.35. The last traded price of Mahindra & Mahindra Ltd. stock stood at Rs 1,549.50. Over a span of 3 years, the stock delivered an impressive return of 158.58%, outperforming the Nifty 100, which yielded a return of 78.82%. The company’s annual revenue growth of 34.43% surpassed its 3-year Compound Annual Growth Rate (CAGR) of 16.85%. Moreover, the company achieved a Return on Equity (ROE) of 18.24% in the financial year ending on March 31, 2023, surpassing its 5-year average of 10.72%.

Eicher Motors Ltd. experienced a decrease in its share price, declining by -2.53% compared to its previous close of Rs 3,309.75. The last traded price of Eicher Motors Ltd. stock stood at Rs 3,225.95. Over a period of 3 years, the stock delivered a return of 71.93%, slightly lower than the Nifty 100, which yielded a return of 78.82%. On July 4, 2023, a 50-day moving crossover occurred. Historical data shows an average price decline of -6.37% within 30 days following this signal over the past 5 years. The company’s annual revenue growth of 40.03% outperformed its 3-year Compound Annual Growth Rate (CAGR) of 15.58%. Additionally, within the last 18 years, only 2.44% of trading sessions witnessed intraday declines exceeding 5%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.26, and the market breadth was positive. The volatility index India Vix decreased by 0.35 percent to settle at 11.84 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 5913
Decliners – 4687
52Wk High – 172
52Wk Low – 17
High Band Hitters – 62
Low Band Hitters – 43
200d SMA – 17983
50d SMA – 18548
20d SMA – 18896

Top Gainers and Losers Stocks

The top gainers were M&M (+5.03%), Apollo Hospital (+3.93%), Power Grid (+3.71%), Tata Motors (+2.17%), and Reliance (+1.89%).

The top losers were Eicher Motors (-2.53%), HDFC Life (-1.93%), Maruti (-1.27%), HCL Technologies (-1.04%), and Bajaj Finance (-0.95%).

Top Gainers and Losers Sector

The top gainers sectors were Realty (+2.25%), Oil & Gas (+1.89%), Media (+1.71%), Auto (+1.12%), and Pharma (+0.72%).

The top losers sectors were IT (-0.12%) and FMCG (-0.02%).

The Nifty Midcap 50 was up by 0.72 percent, while the Nifty Small Cap 50 was up by 0.68 percent on the day.

The Nifty Midcap 50 index currently closed at 10,267.40, while the Nifty Small Cap 50 index currently closed at 5,085.75.

SECTORS – NOTABLE ACTION
REALTY +2.25%
OIL & GAS +1.89%
MEDIA +1.71%
IT -0.12%
FMCG -0.02%

Stocks Ban List

(SEBI) F&O ban list has not listed any stock in ban list today.

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.
DELTACORP, BHEL, PNB, L&TFH, MANAPPURAM, ZEEL and GRANULES are stock that are potentially facing the possibility of being included in the ban list.