Nifty’s Impressive 5-Day Streak Comes to an End at 22-1-24

At the close, the Nifty 50 was at 22,032.30 down by 0.29%

In the dynamic realm of Indian equity markets, the NSE Nifty 50 faced a formidable challenge today, commencing its journey in the red. The index experienced a 0.29 percent dip, concluding below the crucial 22,050 mark. This downturn disrupted an impressive five-day winning streak, creating reverberations across the financial landscape.

The day unfolded amidst subdued Asian markets, casting a subdued shadow on Indian indices. Despite grappling with early losses, the Nifty resiliently hovered above 22,000, showcasing a glimpse of strength. However, sustained selling pressure in the latter half of the day pushed the index below the psychological threshold, wrapping up the session on a negative note with a 65-point decline.

Market dynamics revealed a discernible profit-taking trend, notably following a robust performance by the IT sector. Amid global uncertainties, investors pondered the sustainability of the prevailing market enthusiasm, especially with elevated valuations in mid and small-cap segments. Foreign Institutional Investor (FII) flows painted a mixed picture, indicating a lack of decisive triggers.

Against this backdrop, oil prices held steady, influenced by persistent geopolitical tensions. Additionally, the latest signals from the Index of Industrial Production (IIP) hinted at near-term softness, further contributing to the nuanced market narrative of the day. As investors navigate these intricate waters, a meticulous assessment of both domestic and global factors becomes crucial for well-informed decision-making in this ever-evolving financial landscape.

Bank Nifty: Down by 0.07%

The Bank Nifty initiated trading with a negative stance, opening in the red and experiencing a marginal decline of 0.07%. The day concluded with the Bank Nifty settling at 48,125.10, reflecting a subdued sentiment in the banking sector. Concurrently, the BSE Sensex, aligning with a broader market trend, saw a slight dip of 0.27%, leading to its closure in the red at 73,128.77.

On the sectorial front, the metal sector emerged as a standout performer with a notable gain of 0.99%. Steel Authority Of India Ltd. showcased a substantial increase of 4.62%, while Hindustan Copper Ltd. secured a commendable gain of 3.58%. In contrast, the realty sector experienced a downturn, marking a decline of 1.66%. Macrotech Developers Ltd. faced a setback with a loss of -3.79%, and Prestige Estates Projects Ltd. recorded a dip of -2.87%.

Foreign Institutional Investors (FII/FPI) exhibited active engagement, revealing a buy value of Rs. 12,212.14 crore against a sale value of Rs. 11,555.57 crore. This translated into a positive net value of Rs. 656.57 crore, indicative of a favorable trend in their market participation. Conversely, Domestic Institutional Investors (DII) displayed a nuanced pattern, with a buy value of Rs. 10,126.53 crore and a sale value of Rs. 10,495.82 crore, resulting in a net value of -Rs. 369.29 crore. This suggests a net selling trend by DIIs during this period.

Bank Nifty

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

The gainers included IDFC First Bank with a 1.84% increase, HDFC Bank with a 0.31% increase, Bank of Baroda with a 0.17% increase, AU Bank with a 0.12% increase, and Axis Bank with a 0.06% increase. On the other hand, the biggest losers in the sector included Federal Bank with a 2.26% decline, IndusInd Bank with a 1.29% decline, State Bank of India with a 0.40% decline, Bandhan Bank with a 0.35% decline, and ICICI Bank with a 0.22% decline. These results suggest that some of the banking stocks performed better for the day.

Rupee Faces Downward Pressure Amidst Strong Dollar and Global Market Dynamics

The Indian rupee witnessed a decline of 23 paise against the US dollar on Tuesday, settling at 83.09 pro, influenced by a robust greenback performance against major global currencies and a bearish equity market, impacting investor confidence. Volatility in international crude oil prices added further pressure to the domestic currency.

Opening at 82.95 at the interbank foreign exchange, the rupee fluctuated between 82.92 and 83.09 throughout the day. Ultimately, it closed at 83.09 pro, marking a 23 paise loss from its previous day’s closing value. This downturn follows a nine-day winning streak for the rupee, which had gained 9 paise on Monday, closing at 82.86 against the US dollar.

The dollar index, reflecting the greenback’s strength against a basket of six currencies, surged by 0.78% to reach 102.95 on Tuesday. Meanwhile, Brent crude futures, the global oil benchmark, saw a 0.67% increase, reaching $78.67 per barrel. As global economic factors continue to influence currency markets, investors are advised to monitor these developments closely for informed financial decision-making.

Stocks Highlights

Bharat Petroleum Corporation Ltd. (BPCL) experienced a positive uptick, with its share price rising by 2.73% from the previous close of Rs 459.95 to reach Rs 472.50. Notably, only 1.78% of the last 19 years’ trading sessions witnessed intraday gains higher than 5%. The company’s impressive 3-year Revenue CAGR of 35.99% outpaced its overall 3-year CAGR of 18.13%. A bullish signal emerged with a weekly stochastic crossover on the week ending Jan 12, 2024, historically resulting in an average price gain of 7.72% within 7 weeks. Furthermore, BPCL’s prudent financial management is evident, with minimal spending on interest (less than 1%) and employee costs (0.59%) in the year ending Mar 31, 2023.

In contrast, Divi’s Laboratories Ltd. witnessed a decline of -2.11%, with its share price dropping from Rs 3,909.60 to Rs 3,827.00. Only 1.97% of the last 19 years’ trading sessions saw intraday gains higher than 5%. The company reported a concerning 10.6% contraction in sales, marking the first revenue contraction in the last 3 years. Although a bullish signal emerged with a 14-day moving crossover, historically resulting in an average price gain of 2.86% within 7 days, the topline contraction remains a key consideration. Divi’s Labs allocated less than 1% of operating revenues to interest expenses but incurred a higher employee cost at 12.55% in the year ending Mar 31, 2023. Investors are advised to carefully evaluate these dynamics for informed decision-making.

Advance Decline Ratio

Today, the advance-decline ratio was 0.44, and the market breadth was negative. The volatility index India Vix decreased by 1.81 percent to settle at 13.57 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 761
Decliners – 1739
52Wk High –  197
52Wk Low – 9
High Band Hitters – 98
Low Band Hitters – 107
200d SMA – 19414
50d SMA – 20758
20d SMA – 21623

Top Gainers and Losers Stocks

The top gainers were BPCL (+2.73%), Tata Steel (+1.74%), Titan (+1.60%), ITC (+1.58%), and Maruti (+1.08%).

The top losers were Divi’s Laboratories (-2.11%), HCL Technologies (-2.09%), NTPC (-1.81%), Wipro (-1.79%), and Infosys (-1.58%).

Top Gainers and Losers Sector

The top gainers sector were Metal (+0.99%), Oil & Gas (+0.37%), Media (+0.34%), Consumer Durables (+0.26%), and FMCG (+0.17%).

The top losers sector were Realty (-1.66%), IT (-1.28%), Pharma (-1.14%), Auto (-0.28%), and Financial Services (-0.07%).

SECTORS – NOTABLE ACTION
METAL +0.99%
OIL & GAS +0.37%
MEDIA +0.34%
REALTY -1.66%
IT -1.28%
PHARMA -1.14%

Stocks Ban List

(SEBI) F&O ban list (POLYCAB open at +4290.00 and close at +4340.80), (ZEEL open at -243.90 and close at +253.30), (METROPOLIS open at +1558.00 and close at +1555.75), (BIOCON open at +282.25 and close at +287.60), (CHAMBLFERT open at +385.85 and close at +386.80), (HINDCOPPER open at -263.00 and close at +266.95), (DELTACORP open at -149.05 and close at +149.65), (PVRINOX open at -1520.00 and close at -1505.40), (BANDHANBNK open at -231.00 and close at -229.75), (INDUSTOWER open at +222.20 and close at +219.50), (BHEL open at -202.05 and close at +203.00), (INDIACEM open at -257.60 and close at +258.20), (PEL open at -935.00 and close at -929.10), (SAIL open at -115.05 and close at +119.55), and (ESCORTS open at +2909.00 and close at +2957.85) 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.

GNFC, ASHOKLEY, ABFRL, IEX, RBLBANK, BALRAMCHIN, PNB, GRANULES, NMDC, UPL, SUNTV, ABCAPITAL, and GMRINFRA stocks has the possibilities of entrance in the ban list.

INDUSTOWER, BHEL, INDIACEM, PEL, SAIL, and ESCORTS stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 21900 to 22150 is the Nifty 50 trading range.

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