Indian Stocks Close Lower After Four-Day Winning Streak

At the close, the Nifty 50 was at 22,356.30 down by 0.22%

On March 5, the NSE Nifty 50 commenced trading on a downward trend, slipping by 0.22% and closing below the 22,400 mark. The day witnessed a mix of global cues and selling pressure particularly in the information technology and FMCG sectors, leading to a highly volatile session. The Nifty closed at 22,356.30, down by 49.30 points.

The market opened flat and extended losses gradually before witnessing a late-session buying spree that narrowed down the losses. However, the index still closed in the red, down approximately 49 points. Analysts believe that the index is undergoing a retest of the breakout level of 22,300 established last week. Banking stocks initiated a rally after a sluggish opening, helping the index recover some of its losses. Nevertheless, NBFC counters dragged the index down, settling at 22,356.30 by the day’s end.

Despite the day’s losses, the sentiment remains positive as the index continues to hover above its short-term moving average. Meanwhile, the Bank Nifty displayed resilience by sustaining above a downward sloping resistance trendline, further reinforcing the bullish sentiment.

Indecisiveness Prevails, Doji Candlestick Formation The Nifty 50 concluded its four-day winning streak with a volatile and rangebound session, forming a Doji candlestick pattern on the daily charts. This pattern, characterized by a close near the opening level, indicates uncertainty among market participants regarding the future direction of the market.

As bulls and bears engage in minor clashes without a definitive outcome, investors are advised to monitor global cues and sectoral movements closely. The market remains susceptible to fluctuations, influenced by both domestic and international factors, including the upcoming testimony by the Federal Reserve Chair and key U.S. jobs data.

Bank Nifty: Up by 0.26%

On the trading day, the Bank Nifty commenced in the red but managed to gain momentum, closing in the green with a modest increase of 0.26% at 47,581.00. Conversely, the BSE Sensex faced downward pressure, declining by 0.26% and concluding the session in the red, reaching a low of 73,677.13.

Despite the initial setback, the Bank Nifty showcased resilience by reversing its trajectory and finishing on a positive note. This performance reflects the strength of the banking sector amidst broader market fluctuations.

In the sectorial landscape, the auto sector has demonstrated noteworthy gains, experiencing a surge of 1.35%. Particularly, Samvardhana Motherson International Ltd. showcased a substantial increase of 5.60%, closely trailed by Tata Motors Ltd. with a gain of 3.59%. Conversely, the IT sector encountered obstacles, emerging as the top loser with a decline of 1.59%. Persistent Systems Ltd. registered a significant loss of -2.59%, while Mphasis Ltd. also witnessed a decrease of -2.25%.

Foreign Institutional Investors (FII/FPI) engaged in a buying spree with a total value of Rs. 15,215.15 crore, while their selling activities amounted to Rs. 14,640.87 crore, resulting in a net value of Rs. 574.28 crore. Conversely, Domestic Institutional Investors (DII) displayed robust buying behavior, with a buy value of Rs. 11,888.65 crore, whereas their selling activities totaled Rs. 10,054.04 crore, leading to a net value of Rs. 1,834.61 crore.

Bank Nifty

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

The gainers included Punjab National Bank with a 2.90% increase, Bank of Baroda with a 1.76% increase, State Bank of India with a 1.63% increase, Federal Bank with a 1.07% increase, and IndusInd Bank with a 0.69% increase. On the other hand, the biggest losers in the sector included AU Bank with a 1.41% decline, Bandhan Bank with a 0.63% decline, IDFC First Bank with a 0.55% decline, Kotak Bank with a 0.53 % decline, and Axis Bank with a 0.44% decline. These results suggest that some of the banking stocks performed better for the day.

Indian Rupee Weakens Slightly Against US Dollar Amidst Global Market Fluctuations

The Indian rupee experienced a modest decline of 2 paise against the US dollar, opening at 82.90 and further slipping to trade at 82.92 in early Tuesday trade. This dip can be attributed to the robust performance of the US dollar against major currencies worldwide and the outflow of foreign funds from the Indian capital markets.

Market Factors Driving Rupee Fluctuations While the downward trend in crude oil prices provided some support to the Indian currency, it remained under pressure due to subdued sentiments in the equity market. On Monday, the rupee had settled marginally lower at 82.90 against the US dollar.

Global Economic Indicators Impacting Currency Trends The dollar index, which measures the strength of the greenback against a basket of six currencies, saw a slight uptick, rising by 0.03% to 103.81. Concurrently, Brent crude futures, the global benchmark for oil prices, experienced a modest decline of 0.17% to $82.66 per barrel.

Implications for Investors and Economic Outlook These fluctuations underscore the interconnectedness of global markets and the importance of monitoring various economic indicators. For investors and policymakers, understanding these dynamics is crucial for making informed decisions and navigating the ever-evolving financial landscape.

Stocks Highlights

Tata Motors Ltd. Shows Impressive Growth Despite Economic Challenges

Tata Motors Ltd. witnessed a notable increase in its share price, rising by 3.59% to reach Rs 1,022.60 from its previous close of Rs 987.20. The company’s annual revenue growth of 24.54% has surpassed its three-year compounded annual growth rate (CAGR) of 9.81%. Additionally, Tata Motors Ltd. allocated 2.96% of its operating revenues towards interest expenses and 9.73% towards employee costs in the fiscal year ending March 31, 2023.

Bajaj Finserv Ltd. Faces Market Volatility

Conversely, Bajaj Finserv Ltd. experienced a decline in its share price, dropping by -4.16% to Rs 1,552.00 from its previous close of Rs 1,619.30. Despite this, the company’s annual revenue growth of 19.92% outperformed its three-year CAGR of 14.57%. Notably, only 2.54% of trading sessions in the last 15 years saw intraday gains higher than 5%, suggesting market volatility. Moreover, a buy signal emerged with a 50-day moving crossover, historically resulting in an average price gain of 7.23% within 30 days. Bajaj Finserv Ltd. allocated 14.87% of its operating revenues towards interest expenses and 10.68% towards employee costs in the fiscal year ending March 31, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 0.48, and the market breadth was negative. The volatility index India Vix decreased by 3.63 percent to settle at 14.38 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 825
Decliners – 1733
52Wk High –  96
52Wk Low – 27
High Band Hitters – 63
Low Band Hitters – 145
200d SMA – 20125
50d SMA – 21829
20d SMA – 22059

Top Gainers and Losers Stocks

The top gainers were Tata Motors (+3.59%), Bharti Airtel (+3.13%), Bajaj Auto (+1.74%), SBIN (+1.63%), and ONGC (+1.52%).

The top losers were Bajaj Finserv (-4.16%), Bajaj Finance (-4.08%), Nestle India (-2.03%), Infosys (-2.03%), and TCS (-1.71%).

Top Gainers and Losers Sector

The top gainers sector were Auto (+1.35%), Oil & Gas (+0.52%), Pharma (+0.31%), and Realty (+0.31%).

The top losers sector were IT (-1.59%), Media (-1.37%), FMCG (-1.05%), Consumer Durables (-0.63%), and Financial Services (-0.35%).

SECTORS – NOTABLE ACTION
AUTO +1.35%
OIL & GAS +0.52%
PHARMA +0.31%
IT -1.59%
MEDIA -1.37%
FMCG-1.05%

Stocks Ban List

(SEBI) F&O ban list (ZEEL open at -156.20 and close at +155.05) 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.

SAIL, BHEL, and HINDCOPPER stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 22200 to 22500 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Energy and Bank Shares Drive Nifty to New Highs in Volatile Monday Trade
Special Trading Session on March 2 NSE Nifty 50 Soars to New Heights in Benchmark Indices
Nifty Skyrockets to New Heights on Impressive GDP Figures

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