Indian Benchmark Indices Extend Losses Amidst Volatility

At the close, the Nifty 50 was at 19,310.15 down by 0.28%

The Indian benchmark indices witnessed a consecutive downturn over the course of a volatile trading session. Faced with subdued global cues, the market commenced with a pessimistic tone, sustaining a downward trend throughout most of the session. While a partial rebound materialized during the final hour, the session concluded with marginal setbacks.

Amidst this scenario, the NSE Nifty 50 commenced trading on a bearish note, experiencing a decline of 0.28%. The session’s conclusion found the index entrenched in the red zone. Notably, Nifty languished below the critical mark of 19350, outlining the prevailing challenges.

Global Bond Yield Surge Influences Equities markets worldwide, India included, are navigating the repercussions of a notable upswing in US bond yields. This surge has catalyzed currency devaluation across emerging markets, notably in China. As a response, investors are gravitating towards secure dollar-based investments, exiting higher-risk equity holdings.

Market Consolidation Amidst Economic Uncertainties India’s local markets seem poised for a continued consolidation phase, influenced by apprehensions about US and global interest rate escalations, coupled with mounting inflation and a decelerating Chinese economy. These factors collectively temper the enthusiasm for equities in the short term.

Tech Sector Woes Amplify Selling Pressure a stark decline in the technology-heavy Nasdaq index triggered a ripple effect, inciting a sell-off in domestic IT stocks. Other sectors similarly faced selling pressure, attributed to the prevailing weak global cues.

Bank Nifty: Down by 0.09%

The downtrend for Bank Nifty persists, marking the seventh successive trading session of losses. The day began with a bearish tone, as both Bank Nifty and BSE Sensex opened in the red. Bank Nifty witnessed a decline of 0.09%, closing at 43,851.05, while the BSE Sensex mirrored the negative sentiment with a 0.31% drop, concluding at a low of 64,948.66.

Sectorial Market, the Media sector took the lead with an impressive gain of 0.65%. Noteworthy contributors include TV18 Broadcast Ltd., marking a substantial increase of 4.99%, and Network18 Media & Investments Ltd., securing a commendable rise of 3.77%.

IT Sector Encounters Setback, in contrast, the Information Technology (IT) sector experienced a setback, facing a decline of 1.47%. Within this sector, Tech Mahindra Ltd. and Mphasis Ltd. both suffered a loss of -2.01%, possibly due to broader industry challenges or specific company factors.

Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI) engaged in equity transactions with a buy value of Rs. 12,302.17 crore, while the sale value stood at Rs. 12,569.15 crore. Consequently, the net value depicted a deficit of Rs. -266.98 crore.

Domestic Institutional Investors (DII) participated in the equity market with a buy value amounting to Rs. 6,501.00 crore, and a corresponding sale value of Rs. 6,161.82 crore. The net value demonstrated a positive trend, reflecting a surplus of Rs. 339.18 crore.

Bank Nifty

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

The gainers included AU Bank with a 2.09% increase, Bank of Baroda with a 0.76% increase, Axis Bank with a 0.64% increase, and IDFC First Bank with a 0.51% increase. On the other hand, the biggest losers in the sector included Punjab National Bank with a 1.26% decline, Kotak Bank with a 0.92% decline, Federal Bank with a 0.63% decline, HDFC Bank with a 0.54% decline, and ICICI Bank with a 0.28% decline. These results suggest that some banking stocks not performed better for the day.

Buzz

Indian Rupee Strengthens Amid Global Market Dynamics

The Indian rupee concluded the week on a positive note, benefiting from a decline in US treasury yields and a slight easing of the dollar’s strength. These factors provided relief after earlier concerns about the possibility of prolonged higher US interest rates had led to the rupee after reaching its lowest point earlier in the week.

The rupee’s daily performance showcased a modest increase of 0.05% against the US dollar, with a closing rate of 83.1025. However, over the entire week, the currency experienced a marginal dip of 0.31%, reflecting the underlying market volatility.

Conversely, the dollar index exhibited gains on Friday, aligning with its trajectory for a fifth consecutive week of appreciation. The greenback’s upward momentum was fueled by the demand for safer assets, driven by the anticipation that US treasury yields would remain elevated due to prevailing concerns about the Chinese economy.

Buzzing

Eicher Motors Ltd. Eicher Motors Ltd.’s share price witnessed a steady uptick of 1.41%, moving from its previous close of Rs 3,298.45 to a last traded price of Rs 3,345.00. The stock has provided a commendable three-year return of 54.1%. However, when compared to Nifty 100’s return of 69.77% over the same period, Eicher Motors Ltd. lags slightly behind, prompting a closer examination of its performance drivers.

A significant technical indicator is the appearance of a 200-day moving crossover recently. Such occurrences can signify potential shifts in market trends, prompting investors to closely monitor subsequent developments. A notable trend emerges as the data suggests an average price decline of -4.27% within 30 days of this signal over the last five years. Eicher Motors Ltd.’s annual revenue growth of 40.03% surpasses its three-year compound annual growth rate (CAGR) of 15.58%. Additionally, over the last 18 years, only 2.42% of trading sessions experienced intraday declines higher than 5%, showcasing the stock’s relative stability.

Hero MotoCorp Ltd.‘s share price trends, a recent decline of -2.17% from its previous close at Rs 2,991.05 is evident. The latest trading saw the stock settle at 2,926.00, prompting a closer examination of its performance against market benchmarks.

Over the span of three years, Hero MotoCorp Ltd. generated a return of 2.29%, juxtaposed with Nifty 100’s substantial 69.77% return. This performance dichotomy underscores the necessity of a strategic approach to investment decisions.

Hero MotoCorp Ltd. stands out with an impressive annual revenue growth rate of 15.35%. This remarkable achievement not only surpasses its own 3-year compound annual growth rate (CAGR) of 4.97% but also positions the company favorably in a competitive landscape.

Drawing insights from historical data, a consistent pattern emerges: a mere 1.4% of trading sessions over the past 18 years witnessed intraday gains exceeding 5%.

Advance Decline Ratio

Today, the advance-decline ratio was 0.65, and the market breadth was negative. The volatility index India Vix decreased by 0.79 percent to settle at 12.14 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 914
Decliners – 1416
52Wk High –  104
52Wk Low – 18
High Band Hitters – 69
Low Band Hitters – 52
200d SMA – 18314
50d SMA – 19303
20d SMA – 19572

Top Gainers and Losers Stocks

The top gainers were Adani Enterprises (+3.68%), Adani Ports (+3.01%), Eicher Motors (+1.41%), Maruti (+0.91%), and Britannia (+0.74%).

The top losers were Hero MotoCorp (-2.17%), Tech Mahindra (-2.01%), TCS (-1.97%), Hindalco (-1.88%), and Infosys (-1.74%).

Top Gainers and Losers Sector

The top gainers sectors were Media (+0.65%), FMCG (+0.22%), and Metal (+0.20%).

The top losers sectors were IT (-1.47%), Realty (-0.73%), Pharma (-0.57%), Consumer Durables (-0.51%), and Financial Services (-0.34%).

The Nifty Midcap 50 was down by 0.45 percent, while the Nifty Small Cap 50 was down by 0.54 percent on the day.

The Nifty Midcap 50 index currently closed at 10,824.30, while the Nifty Small Cap 50 index currently closed at 5,312.40.

SECTORS – NOTABLE ACTION
MEDIA +0.65%
METAL +0.22%
FMCG +0.20%
IT -1.47%
REALTY -0.73%
PHARMA-0.57%

Stocks Ban List

(SEBI) F&O ban list  (HINDCOPPER open at -143.00 and close at -140.75), (PNB open at +63.65 and close at -62.80), (INDIACEM open at +238.25 and close at +236.95), (GNFC open at +543.95 and close at -541.35), (SAIL open at -85.05 and close at -84.35), (DELTACORP open at +182.50 and close at -180.70), (CHAMBLFERT open at +263.70 and close at -260.20), (ZEEL open at +273.80 and close at -273.70), (GRANULES open at -293.50 and close at -290.35), and (IBULHSGFIN open at -162.90 and close at -156.50) are not currently on 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.

BHEL, METROPOLIS, RBLBANK, RECLTD, MGL, CANFINHOME, VEDL, CANBK and NMDC stocks has the possibilities of enterance in the ban list.

IBULHSGFIN stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 19240 to 19380 is the Nifty 50 trading range.

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