Market Stays Rangebound Despite Mixed Global Trends

At the close, the Nifty 50 was at 19,443.50 up by 0.19%

Today, the NSE Nifty 50 commenced its trading session on a positive note, marking a modest increment of 0.19 percent. Throughout the day, it maintained its positive trajectory, crossing the significant 19,400 mark, underscoring the market’s resilience in the face of ongoing turbulence.

Despite encountering another day of fluctuation, the Indian benchmark indices concluded on a relatively flat note. The market’s performance was influenced by a blend of mixed global cues, causing it to start on a neutral footing and subsequently remain rangebound. However, the indices managed to secure marginal gains, aligning with Tuesday’s trends.

Throughout the trading session, the Nifty displayed a narrow range, oscillating within these boundaries until the day’s close, ultimately settling at 19,443.50 levels. Within the sectoral landscape, a mixed trend prevailed, with realty and pharma segments registering notable gains.

Traders adopted a cautious stance, awaiting the upcoming speech by the Federal Reserve Chairman, recognizing the significance of global developments in shaping market sentiment. Despite the inherent volatility, the overall trend remained bullish, as the Nifty closed above a critical short-term moving average.

Additionally, the domestic market traded in a rangebound manner with a positive bias, with further confidence derived from global market cues post the Fed Chair’s speech. Furthermore, the decline in oil prices brings relief to the domestic economy, potentially curbing inflation and fiscal pressures. These developments provide valuable insights into the market’s resilience and adaptability amidst a complex economic landscape.

Bank Nifty: Down by 0.18%

The Bank Nifty commenced its trading session on a bearish note, displaying a modest decline of 0.18 percent. As the trading day progressed, this trend persisted, and the Bank Nifty eventually closed in the red at a value of 43,658.65. On the other hand, the BSE Sensex exhibited a more nuanced trajectory. While it initially opened on a positive note, with an increase of 0.05 percent, the index displayed resilience and managed to close in the green. It achieved a closing value of 64,975.61, marking a notable high for the day.

In the sectorial front, the real estate market is experiencing a notable upswing, with a 1.52% increase in the sector’s overall performance. Two key players in this sector, Prestige Estates Projects Ltd., and Swan Energy Ltd., have shown impressive gains of 5.01% and 4.57%, respectively.

Conversely, the financial services sector has faced some challenges, with a minor decline of 0.25%. LIC Housing Finance Ltd. and ICICI Bank Ltd. have experienced losses of -1.71% and -1.31%, respectively.

FII/FPI Buy Value amounted to Rs. 7,467.02 crore, while the Sale Value was Rs. 7,551.57 crore. The Net Value, representing the difference between their purchases and sales, stood at -Rs. 84.55 crore, indicating a net selling activity by these foreign investors.

Conversely, Domestic Institutional Investors (DIIs) were engaged in the market with a Buy Value of Rs. 7,548.90 crore and a Sale Value of Rs. 7,024.43 crore. The Net Value, which signifies the net difference between their buying and selling activities, amounted to Rs. 524.47 crore. DIIs displayed a net buying activity in the market during this period.

Bank Nifty

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

The gainers included AU Bank with a 0.90% increase, Bank of Baroda with a 0.86% increase, Bandhan Bank with a 0.69% increase, IDFC First Bank with a 0.66% increase, and HDFC Bank with a 0.31% increase. On the other hand, the biggest losers in the sector included ICICI Bank with a 1.31% decline, Punjab National Bank with a 0.53% decline, Kotak Bank with a 0.19% decline, Federal Bank with a 0.10% decline, and IndusInd Bank with a 0.09% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Rupee Inches Lower Against the US Dollar Amidst Market Fluctuations

On Wednesday, the Indian rupee exhibited a subtle decline of 1 paisa against the US dollar, settling at 83.28 (pro). This movement was attributed to several factors affecting the forex market. A strong US dollar in international markets exerted downward pressure on the rupee’s value, restricting its trading within a narrow range.

The local unit faced additional pressure due to a subdued performance in domestic equities, reflecting the interconnected nature of financial markets. However, there was a silver lining as the rupee received support from a correction in oil prices. A decline in oil prices is generally seen as a positive factor for the domestic currency, as it eases the country’s import bills.

In trading specifics, the rupee initiated at 83.25 against the dollar and reached a low of 83.29 during the trading session before settling at 83.28 (pro), marking a marginal decrease from the previous day’s closing rate of 83.27.

The forex landscape is also influenced by global dynamics, and the dollar index, measuring the strength of the greenback against a basket of currencies, showed a 0.24% increase, further impacting the rupee’s performance.

Furthermore, Brent crude futures, a crucial determinant for the rupee’s performance, inched up by 0.10% to reach $81.69 per barrel, which provided some support for the currency amidst the prevailing market fluctuations. These interwoven factors underscore the importance of staying attuned to global economic developments for forex traders and investors.

Buzzing

Bharat Petroleum Corporation Ltd. has demonstrated remarkable performance with a 2.74% increase in its share price, reaching Rs 383.00 from its previous closing of Rs 372.80. Notably, the company’s annual revenue growth of 35.99% has outperformed its 3-year Compound Annual Growth Rate (CAGR) of 18.13%. This achievement underscores the company’s robust financial health and market competitiveness.

Intraday analysis reveals that only 1.79% of trading sessions in the past 19 years have seen intraday gains higher than 5%, highlighting the consistency of Bharat Petroleum’s performance. Additionally, the company’s prudent financial management is evident, as it has allocated less than 1% of its operating revenues towards interest expenses and a mere 0.59% towards employee costs for the fiscal year ending on March 31, 2023.

On the other hand, ICICI Bank Ltd. witnessed a -1.31% decrease in its share price, closing at Rs 935.70 from its previous value of Rs 948.10. Despite this decline, there are promising signals in play. A buy signal has emerged as the 50-day moving average crossed over on November 6, 2023, with an average price gain of 4.92% within 30 days after this signal in the last 5 years.

ICICI Bank’s financial stability is notable, with an uptrend in its net interest margin over the last 3 years, achieving a margin of 3.6% in the previous year. Furthermore, the bank has reported a YoY increase of 17.77% in its advances, surpassing its 5-year CAGR of 10.87%, highlighting its robust loan book growth. The company’s net profit per employee has also displayed an uptrend, with a 14.2% growth over the past year, reflecting effective management and operational efficiency.

Advance Decline Ratio

Today, the advance-decline ratio was 1.25, and the market breadth was positive. The volatility index India Vix decreased by 1.38 percent to settle at 11.04 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1344
Decliners – 1072
52Wk High –  118
52Wk Low – 8
High Band Hitters – 114
Low Band Hitters – 56
200d SMA – 18665
50d SMA – 19564
20d SMA – 19394

Top Gainers and Losers Stocks

The top gainers were BPCL (+2.74%), Adani Ports (+2.46%), Asian Paint (+2.13%), Cipla (+1.94%), and Titan (+1.27%).

The top losers were ICICI Bank (-1.31%), Infosys (-0.98%), NTPC (-0.92%), Tech Mahindra (-0.88%), and Tata Consumer (-0.78%).

Top Gainers and Losers Sector

The top gainers sector were Realty (+1.52%), Pharma (+1.48%), Oil & Gas (+0.78%), Metal (+0.75%), and FMCG (+0.62%).

The top losers sectors were Financial Services (-0.25%), IT (-0.21%), Media (-0.07%).

SECTORS – NOTABLE ACTION
REALTY +1.52%
PHARMA +1.48%
OIL & GAS +0.78%
FINANCIAL SERVICES -0.25%
IT -0.21%
MEDIA -0.07%

Stocks Ban List

(SEBI) F&O ban list (GNFC open at -690.00 and close at +692.40) 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.

DELTACORP, CHAMBLFERT, MANAPPURAM, INDIACEM, IBULHSGFIN, BALRAMCHIN, and MCX stocks has the possibilities of enterance in the ban list.

Daily Pivots

As per the above pivots data, 19390 to 19490 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Indian Stock Market Ends Slightly Lower in Volatile Session
Market Soars as Festive Spirit Takes Hold, Gains Almost 1%
Equity Benchmark Extends Gains with Positive Global Cues and Strong Q3 Results

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