Bears Take Charge on D-Street Nifty Dips Below 22,000

At the close, the Nifty 50 was at 21,995.85 down by 0.69%

In today’s trading session, the NSE Nifty 50 index commenced positively but encountered a downturn, closing in the red with a decrease of 0.69 percent. The benchmark index, despite an initial uptrend, yielded to selling pressure, marking its fourth consecutive session in the negative territory. Notably, the Nifty dipped below the significant psychological level of 22,000, concluding at 21,995.85, down by 152.05 points.

The market displayed a mixed performance amidst global cues, initially opening on a positive note and maintaining positivity in the first half of the trading session. However, the latter half witnessed heightened volatility, leading to a sharp selloff and eventual closure in the negative zone. Analyzing the daily charts reveals resistance encountered around the 22300 – 22320 zone, coinciding with key hourly moving averages.

Amidst the weekly expiry day, intense fluctuations were observed, with bullish dominance in the morning session followed by a substantial decline later on. Persistent selling pressure pushed the index below the crucial support level of 22,000. Despite attempts at recovery, the Nifty struggled against bearish sentiment, closing below the 50-day Exponential Moving Average (EMA) and exhibiting a bearish candlestick pattern on April 18.

Though the index endured its fourth consecutive decline, it managed to defend the upward sloping support trendline formed by connecting the lows of January 24 and March 20, 2024, during the day’s trading session. This pattern suggests underlying market weakness, indicating caution among investors amidst prevailing volatility.

Bank Nifty: Down by 0.87%

The Bank Nifty Index continued to witness a bearish grip, as upward movements encountered robust selling pressure, reflecting the prevailing “Trade on upswings” sentiment among traders. Opening on a positive note, the Bank Nifty soon succumbed to a decline of 0.87 percent, ultimately closing in the red territory at 47,069.45.

Similarly, the BSE Sensex, mirroring the market sentiment, experienced a downward trajectory, declining by 0.62 percent and concluding the day at a low of 72,488.99. The bearish trend persisted throughout the trading session, with any attempts at recovery met with aggressive selling, indicating a cautious approach adopted by market participants.

In the sectorial front, Media emerged as a notable gainer, witnessing a rise of 0.77 percent. Notably, Network18 Media & Investments Ltd. recorded a substantial gain of 4.95 percent, alongside Hathway Cable & Datacom Ltd., which surged by 4.02 percent.

Conversely, Oil & Gas emerged as the top loser, experiencing a decline of 1.10 percent. Within this sector, Indraprastha Gas Ltd. faced a notable loss, plummeting by -4.71 percent, while Aegis Logistics Ltd. also saw a decline of -3.75 percent.

Foreign Institutional Investors (FII/FPI) recorded a buy value of Rs. 18,231.30 crore and a sale value of Rs. 22,491.63 crore, resulting in a net value of -Rs. 4,260.33 crore. This indicates a net selling position by FIIs/FPIs during the specified period.

Conversely, Domestic Institutional Investors (DIIs) exhibited a contrasting trend, with a buy value of Rs. 14,273.71 crore and a sale value of Rs. 11,988.19 crore, leading to a net value of Rs. 2,285.52 crore. DIIs maintained a net buying stance during the stated timeframe.

Bank Nifty

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

The gainers included Bank of Baroda with a 2.16% increase, AU Bank with a 1.39% increase, Punjab National Bank with a 1.24% increase, IDFC First Bank with a 0.12% increase, and Federal Bank with a 0.07% increase. On the other hand, the biggest losers in the sector included Axis Bank with a 2.48% decline, ICICI Bank with a 1.10% decline, HDFC Bank with a 0.82% decline, IndusInd Bank with a 0.82% decline, and State Bank of India with a 0.74% decline. These results suggest that some of the banking stocks performed better for the day.

Rupee Appreciates Against US Dollar Amidst Market Shifts

The Indian rupee exhibited resilience, bouncing back from its recent lows to close at 83.55 against the US dollar, marking a gain of 6 paise. This upward movement was attributed to a retreat in both the American currency and Brent crude oil prices from their elevated levels. Opening at 83.51 against the greenback, the rupee touched an intra-day high of 83.49 before settling at 83.55, reflecting a positive sentiment in the market.

The rebound in the rupee follows a period of volatility, with Tuesday witnessing the currency plunging 17 paise to reach its lowest level of 83.61 against the US dollar for the second time in four weeks. Notably, forex and money markets were closed on Wednesday due to ‘Ram Navami’.

In parallel, the dollar index, measuring the greenback’s strength against a basket of six currencies, saw a marginal decline of 0.07 percent, standing at 105.87. Additionally, Brent crude futures, the global oil benchmark, experienced a decrease of 0.93 percent, settling at USD 86.48 per barrel.

These developments underscore the interplay of various factors influencing currency and commodity markets, emphasizing the need for investors to stay informed and adapt to evolving market conditions effectively.

Stocks Highlights

Bharti Airtel Ltd. Shows Positive Momentum Amidst Sell Signals

Bharti Airtel Ltd. witnessed a surge in its share price by 4.03%, closing at Rs 1,265.50 from its previous close of Rs 1,216.45. However, despite this positive movement, certain sell signals have emerged in the market. A bearish trend was indicated by a 10-day moving crossover on April 16, 2024, suggesting a potential downward trajectory. Historical data reveals an average price decline of -2.3% within 7 days of such signals over the past 5 years.

Additionally, a 5-day moving crossover on the same date further reinforces the bearish sentiment, with an average price decline of -2.11% within 7 days historically. Despite these indicators, Bharti Airtel Ltd. has showcased impressive stock returns, outperforming both Nifty 100 and S&P BSE Healthcare indices over a 3-year period.

Apollo Hospitals Enterprise Ltd. Faces Share Price Decline

Contrary to Bharti Airtel, Apollo Hospitals Enterprise Ltd. experienced a decline in its share price by -3.71%, closing at Rs 6,100.00 from its previous close of Rs 6,334.75. Despite this setback, the company has maintained a relatively stable expense allocation, with 2.29% of operating revenues directed towards interest expenses and 12.9% towards employee costs.

Similar to Bharti Airtel, Apollo Hospitals Enterprise Ltd. has demonstrated robust stock returns compared to both Nifty 100 and S&P BSE Healthcare indices over a 3-year period. However, investors should remain vigilant amidst the downward trend in share price and carefully evaluate market signals for informed decision-making.

Advance Decline Ratio

Today, the advance-decline ratio was 0.83, and the market breadth was negative. The volatility index India Vix increased by 3.36 percent to settle at 13.04 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1168
Decliners – 1400
200d SMA – 20622
50d SMA – 22166
20d SMA – 22283

Top Gainers and Losers Stocks

The top gainers were Bharti Airtel (+4.03%), Power Grid (+2.57%), Bajaj Auto (+1.61%), Hindalco (+1.20%), and Infosys (+1.06%).

The top losers were Apollo Hospitals (-3.71%), Nestle India (-2.95%), Titan (-2.94%), ONGC (-2.88%), and Axis Bank (-2.48%).

Top Gainers and Losers Sector

The top gainers sector were Media (+0.77%).

The top losers sector were Oil & Gas (-1.10%), FMCG (-1.08%), Financial Services (-0.95%), Pharma (-0.91%), and Consumer Durables (-0.85%).

SECTORS – NOTABLE ACTION
MEDIA +0.77%
OIL & GAS -1.10%
FMCG -1.08%
FINANCIAL SERVICES -0.95%

Stocks Ban List

(SEBI) F&O ban list (IDEA open at +13.10 and close at +13.20), (METROPOLIS open at -1745.05 and close at -1739.75), (BANDHANBNK open at +175.75 and close at -173.30), (PEL open at +846.00 and close at +841.20), (ZEEL open at +149.75 and close at -144.80), (SAIL open at +150.00 and close at -144.80), (GNFC open at +683.90 and close at -672.35), (HINDCOPPER open at +360.50 and close at -355.50), (NATIONALUM open at +184.80 and close at -181.35), and (BALRAMCHIN open at +373.90 and close at -368.65) 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.

CANBK, TATACHEM, BIOCON, VEDL, PNB, MANAPPURAM, ABFRL, and INDUSTOWER stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 21500 to 22300 is the Nifty 50 trading range.

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