Nifty Faces Resistance at 19,500 Amid Global Uncertainties

At the close, the Nifty 50 was at 19,395.30 down by 0.25%

In a day marked by market fluctuations, the NSE Nifty 50 faced a challenging start with a 0.25% decline, closing below the 19,400 mark after two days of stagnant closures. The equity indices navigated a negative trajectory, characterized by volatility, spending the majority of the session in the red despite a brief positive stint in the initial hours.

For the third consecutive day, market movements remained range-bound, with Nifty maintaining a narrow range and settling around the day’s low. Noteworthy sectoral dynamics unfolded as realty and auto sectors posted gains, while FMCG and oil & gas sectors concluded in the red. Resilience, however, prevailed on the broader front, as both midcap and smallcap indices closed unchanged.

Amid global uncertainties, the Indian market grapples with a range-bound trend, facing challenges breaching the crucial 19,500 level. The recent speech from the Fed Chair, signaling a reduced likelihood of an imminent rate hike, has had a calming effect on the market by easing US treasury yields. Although foreign institutional investors’ selling has moderated, inflows remain subdued due to concerns over elevated interest rates and a global economic slowdown. Interestingly, there is a shift in sentiment, with mid- and small-cap stocks gaining favor again, driven by retail activities and positive corporate results following a recent dip in performance. Investors are urged to stay vigilant and adaptive in this ever-evolving market landscape.

Bank Nifty: Up by 0.06%

The Bank Nifty exhibited resilience as it opened in the red but managed to finish in the green, recording a modest 0.06% gain and closing at 43,683.60. Contrastingly, the BSE Sensex faced a minor setback, experiencing a 0.22% decline and closing in the red at a low of 64,832.20.

In the sectorial front, the realty sector has emerged as a frontrunner, experiencing a notable surge with a 1.23% gain. Noteworthy players in this sector, Sobha Ltd., demonstrated an impressive growth of 5.17%, while Prestige Estates Projects Ltd. followed suit with a commendable gain of 3.68%. Conversely, the FMCG sector witnessed a minor setback, facing a 0.90% decline. Godrej Consumer Products Ltd. experienced a downturn with a loss of -2.13%, and Procter & Gamble Hygiene And Health Care Ltd. saw a decrease of -1.63%.

Foreign Institutional Investors (FII/FPI) recorded a buy value of Rs. 7,166.98 crore and a sale value of Rs. 8,879.31 crore, resulting in a net value of -Rs. 1,712.33 crore. This indicates a net selling trend among foreign investors in the market.

On the other hand, Domestic Institutional Investors (DII) displayed a contrasting pattern with a buy value of Rs. 7,930.58 crore and a sale value of Rs. 6,418.44 crore, leading to a net value of Rs. 1,512.14 crore. Domestic institutions, in this scenario, are net buyers, contributing to the market’s liquidity.

Bank Nifty

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

The gainers included AU Bank with a 2.47% increase, IndusInd Bank with a 1.41% increase, IDFC First Bank with a 1.14% increase, Federal Bank with a 0.48% increase, and Bank of Baroda with a 0.21% increase. On the other hand, the biggest losers in the sector included State Bank of India with a 0.47% decline, HDFC Bank with a 0.34% decline, Bandhan Bank with a 0.16% decline, and Axis Bank with a 0.04% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Rupee Holds Steady Amidst Market Fluctuations

In a day marked by nuanced currency movements, the Indian rupee exhibited resilience, maintaining a range-bound trajectory against the US dollar. Despite a negative trend in domestic equities and continuous foreign fund outflows, the rupee settled marginally higher, closing at 83.29 against the greenback on Thursday.

The day’s trading saw the rupee open at 83.25, reaching its peak at the same level and touching the lowest point at 83.29 against the American currency. This subtle fluctuation reinforces the currency’s stability in the face of market dynamics.

Wednesday’s closing at 83.30 set the stage for Thursday’s minimal gain of 1 paisa, showcasing the rupee’s ability to hold its ground amidst external pressures. Concurrently, the dollar index, reflecting the greenback’s strength against a basket of six currencies, experienced a marginal decrease of 0.01%, settling at 105.58.

In the broader economic landscape, Brent crude futures, the global oil benchmark, observed a 0.96% increase, reaching $80.30 per barrel. These interconnected market movements emphasize the intricate balance influencing the rupee’s performance and provide valuable insights for investors navigating the complexities of the financial world.

Buzzing

Mahindra & Mahindra Ltd. witnessed a commendable surge in its share price, rising by 4.21% to reach Rs 1,550.00, signaling a bullish trend with a 5-day moving crossover. This indicator has historically resulted in an average price gain of 3.03% within 7 days, offering potential opportunities for investors. The company’s robust financial performance is underscored by a 34.43% annual revenue growth, outperforming its 3-year CAGR of 16.85%. Additionally, Mahindra & Mahindra Ltd. demonstrated an impressive return on equity (ROE) of 18.24% for the year ending March 31, 2023, surpassing its 5-year average of 10.72%.

In contrast, Adani Enterprises Ltd. experienced a slight downturn, with a -1.77% decrease in share price to Rs 2,219.95. Despite this, a bullish trend is anticipated following a 5-day moving crossover. Adani Enterprises Ltd. has a history of generating an average price gain of 4.96% within 7 days post this signal. The company’s robust revenue growth of 96.18%, surpassing its 3-year CAGR of 45.79%, reflects its strong market position. However, investors should note the company’s intraday fact check, revealing that only 4.77% of trading sessions in the last 18 years saw intraday gains higher than 5%. Additionally, the company allocated 2.9% of its operating revenues to interest expenses and 1.37% to employee costs in the year ending March 31, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 0.68, and the market breadth was negative. The volatility index India Vix decreased by 0.49 percent to settle at 10.98 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 976
Decliners – 1436
52Wk High –  112
52Wk Low – 12
High Band Hitters – 106
Low Band Hitters – 67
200d SMA – 18671
50d SMA – 19566
20d SMA – 19373

Top Gainers and Losers Stocks

The top gainers were M&M (+4.21%), Apollo Hospitals (+3.70%), Coal India (+2.05%), Power Grid (+1.45%), and IndusInd Bank (+1.41%).

The top losers were Adani Enterprises (-1.77%), Hindustan Unilever (-1.57%), Adani Ports (-1.55%), Tata Consumer (-1.46%), and ONGC (-1.43%).

Top Gainers and Losers Sector

The top gainers sector were Realty (+1.23%), and Auto (+0.83%).

The top losers sectors were FMCG (-0.90%), Oil & Gas (-0.80%), IT (-0.65%), Consumer Durables (-0.55%), and Metal (-0.40%).

SECTORS – NOTABLE ACTION
REALTY +1.23%
AUTO +0.83%
FMCG -0.90%
OIL & GAS -0.80%
IT -0.65%

Stocks Ban List

(SEBI) F&O ban list (DELTACORP open at -140.10 and close at -139.35), and (GNFC open at -669.00 and close at -676.00) 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.

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

Daily Pivots

As per the above pivots data, 19340 to 19470 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Market Stays Rangebound Despite Mixed Global Trends
Indian Stock Market Ends Slightly Lower in Volatile Session
Market Soars as Festive Spirit Takes Hold, Gains Almost 1%

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