Indian Indices Survive Volatility with Marginal Gains

At the close, the Nifty 50 was at 20,103.10 up by 0.16%

In a highly dynamic trading session, the Indian benchmark indices managed to eke out modest gains, though they grappled with persistent volatility. Opening at unprecedented highs, these indices encountered hurdles in maintaining their upward trajectory, resulting in a session marked by range-bound performance.

Today’s performance of the NSE Nifty 50 was noteworthy, commencing with a promising 0.16 percent increase and ultimately closing in positive territory. Of significance, the Nifty index maintains a resilient position above the critical 20,100 level, instilling optimism among market participants.

However, this optimism is tempered by concerns stemming from global economic factors. Specifically, the unexpectedly high U.S. inflation figures and the looming possibility of a hawkish stance from the ECB have sent ripples through investor sentiment, contributing to the observed range-bound trading pattern in the market.

Additionally, the market is contending with apprehensions related to valuation and inflation trends, exacerbated primarily by the upward trajectory of oil prices. These multifaceted challenges raise the specter of the Indian market potentially entering a consolidation phase in the near future.

In light of these intricate market conditions, investors are advised to exercise vigilance, diversify their portfolios, and closely monitor global economic developments. Adopting such proactive strategies will prove pivotal in navigating the evolving landscape and securing sustainable returns.

Bank Nifty: Up by 0.20%

Amidst today’s unfolding market events, both the Bank Nifty and the BSE Sensex exhibited remarkable resilience, culminating in positive closures. The Bank Nifty commenced the day in bullish fashion, posting a notable 0.20 percent gain and ultimately settling at 46,000.85. Likewise, the BSE Sensex recorded a modest uptick of 0.08 percent, concluding the session at a commendable 67,519.00.

One noteworthy aspect of today’s market performance was the pivotal role played by key sectors, including Banks, Autos, and Realty stocks. These sectors demonstrated impressive strength, contributing significantly to the positive outcomes of the benchmark indices. With the festive season on the horizon, this robust showing augurs well for investors and market participants, hinting at potential growth opportunities.

Beyond the benchmark indices, a variety of stocks across diverse sectors exhibited notable activity during today’s trading session. This diversity in market dynamics underscores the fluidity of the Indian stock market, offering investors a broad spectrum of options to consider.

As we approach the festive season, it is prudent for investors to stay attuned to sector-specific developments and emerging trends, as these factors can play a pivotal role in shaping market dynamics in the coming weeks. Maintaining a well-balanced and diversified portfolio continues to be a wise strategy for navigating the intricacies of the Indian equity market.

Within the sectoral landscape, the metal sector stood out as a notable performer, posting robust gains of 1.49%. In this sector, Welspun Corp Ltd. demonstrated significant strength, achieving an impressive gain of 6.17%, closely followed by NMDC Ltd., which recorded substantial gains of 5.91%.

Conversely, the media sector encountered some headwinds, emerging as the top decliner with a decline of 0.40%. In this sector, Nazara Technologies Ltd. experienced a loss of -1.12%, while Zee Entertainment Enterprises Ltd. also saw a decline of -1.09%.

Bank Nifty

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

The gainers included AU Bank with a 2.11% increase, Federal Bank with a 1.58% increase, Punjab National Bank with a 1.52% increase, Bandhan Bank with a 1.44% increase, and Bank of Baroda with a 1.41% increase. On the other hand, the biggest losers in the sector included ICICI Bank with a 0.21% decline, Kotak Bank with a 0.12% decline, HDFC Bank with a 0.05% decline, and IndusInd Bank with a 0.01% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Indian Rupee’s Resilience Amidst Global Challenges

In the currency markets, the Indian rupee showcased its resilience in the face of formidable external pressures. On Thursday, it pared initial gains to conclude at 83.03 (pro) against the US dollar, marking a marginal 2-paise decline. This performance was shaped by two prominent factors: the relentless surge in crude oil prices and the robust performance of the American currency on the global stage.

Crude oil prices, a pivotal determinant of India’s economic landscape, imposed a significant burden on the rupee due to their continued ascent. The ramifications of these rising prices are felt through trade imbalances and inflationary pressures, thereby affecting the rupee’s value.

Amidst this challenging backdrop, the domestic markets lent their support to the local unit. A positive trend emerged within India’s economic ecosystem, mitigating the downward pressure on the rupee.

Trading at the interbank foreign exchange market commenced with the rupee opening at 82.98 against the US dollar, exhibiting a trading range spanning from 82.93 to 83.04. Ultimately, the rupee settled at 83.03 (pro), marking a modest 2-paise depreciation from its previous close.

This performance underscores the rupee’s adaptability and resilience, even in the face of external volatility. As global dynamics continue to evolve, vigilance over factors such as crude oil prices and international currency movements remains essential for stakeholders within India’s financial landscape. The rupee’s journey is one that warrants close monitoring, given its role as a key indicator of India’s economic health.

Buzzing

UPL Ltd. exhibited notable price action, with its share price surging by 3.86% from the previous close of Rs 608.30 to reach Rs 631.80. On September 12, 2023, a 5-day moving crossover occurred, a signal that has historically led to an average price decline of -2.92% within 7 days over the past 5 years. Conversely, a 10-day moving crossover emerged recently, with an average price gain of 3.25% within 7 days following this signal in the last 5 years. It’s worth noting that, over the past 18 years, only 3.01% of trading sessions witnessed intraday gains higher than 5%.

In contrast, Asian Paints Ltd. experienced a slight decline in share price, dropping by -1.15% from the previous close of Rs 3,277.75 to Rs 3,240.00. A 50-day moving crossover materialized recently, and historically, this signal has resulted in an average price gain of 3.73% within 30 days over the past 5 years. Interestingly, over the last 18 years, merely 1.18% of trading sessions recorded intraday gains exceeding 5%.

Advance Decline Ratio

Today, the advance-decline ratio was 2.40, and the market breadth was positive. The volatility index India Vix decreased by 4.31 percent to settle at 11.32 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1677
Decliners – 700
52Wk High –  113
52Wk Low – 4
High Band Hitters – 100
Low Band Hitters – 33
200d SMA – 18441
50d SMA – 19574
20d SMA – 19565

Top Gainers and Losers Stocks

The top gainers were UPL (+3.86%), Hindalco (+3.30%), M&M (+2.41%), ONGC (+2.15%), and Divi’s Laboratories (+2.00%).

The top losers were Asian Paint (-1.15%), HDFC Life (-0.97%), Coal India (-0.86%), Britannia (-0.74%), and LTIM (-0.71%).

Top Gainers and Losers Sector

The top gainers sectors were Metal (+1.49%), Realty (+1.39%), Oil & Gas (+1.10%), Auto (+1.09%), and IT (+0.48%).

The top losers sectors were Media (-0.40%), Consumer Durables (-0.17%), and FMCG (-0.15%).

The Nifty Midcap 50 was up by 1.12 percent, while the Nifty Small Cap 50 was up by 1.18 percent on the day.

The Nifty Midcap 50 index currently closed at 11,582.80, while the Nifty Small Cap 50 index currently closed at 5,836.25.

SECTORS – NOTABLE ACTION
METAL +1.49%
REALTY +1.39%
OIL & GAS +1.10%
MEDIA -0.40%
CONSUMER DURABLES-0.17%
FMCG -0.15%

Stocks Ban List

(SEBI) F&O ban list  (RECLTD open at -245.35 and close at +246.50), (IBULHSGFIN open at +190.00 and close at +191.45), (IEX open at +134.75 and close at +134.85), (NATIONALUM open at +97.80 and close at +99.30), (MANAPPURAM open at +141.00 and close at +142.95), (INDIACEM open at +247.80 and close at +250.45), (DELTACORP open at +180.40 and close at +181.70), (SAIL open at +96.70 and close at +98.65), and (HINDCOPPER open at +159.50 and close at +161.95) 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.

ZEEL, NMDC, IRCTC, BALRAMCHIN, PNB, CANBK, GNFC, RBLBANK and INDUSTOWER stocks has the possibilities of enterance in the ban list.

INDIACEM, DELTACORP, SAIL, and HINDCOPPER stocks has the possibilities of exit from ban list.

Daily Pivots

As per the above pivots data, 20030 to 20180 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Revitalized Bulls Take Charge of the Market, Pushing Nifty Beyond the 20,000 Milestone
Volatility Persists as Nifty Hovers Around 20,000-Mark
Nifty Hits 20K Milestone in 7-Day Stock Rally
Nifty Opens Gap Up, Records Sixth Consecutive Gains

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