Positive Bias Benchmark Indices End Range-Bound Session After Fed Holds Interest Rates

At the close, the Nifty 50 was at 22,648.20 up by 0.19%

The NSE Nifty 50 index began on a cautious note, opening in the red but managed to end the day in the green, gaining 0.19%. Closing above the 22,600 mark, Indian markets rebounded from previous losses on May 2, bolstered by Federal Reserve Chair’s remarks on maintaining key interest rates unchanged during the May 1 meeting.

At the closing bell, the Nifty stood at 22,648.20, up by 43.35 points, showcasing resilience amidst intraday volatility. While the market witnessed buying across various sectors, realty and banking sectors experienced subdued performance. The second-half of trading witnessed some selling pressure, tempering intraday gains.

Analyzing the daily charts, the Nifty appeared to consolidate following the previous session’s sell-off, with marginal gains observed. However, on the hourly chart, a lower peak formation indicated waning bullish sentiment, with momentum indicators dipping into bearish territory, signaling weak momentum.

Global cues played a significant role, with benchmark indices echoing moderate gains after the US Federal Reserve’s decision to maintain interest rates, in line with market expectations. The Fed’s cautious stance on inflation trends and hints at potential rate adjustments provided further support to market sentiment.

Moreover, positive commentary from auto companies regarding recent volume figures buoyed the sector’s performance, contributing to the broader market’s resilience amidst prevailing uncertainties. As the market continues to navigate through volatility, investors remain watchful of evolving global cues and domestic factors shaping market dynamics.

Bank Nifty: Down by 0.34%

Bank Nifty Faces Selling Pressure, BSE Sensex Ends Higher

Contrasting the positive performance of the BSE Sensex, the Bank Nifty encountered continued selling pressure, closing in the red with a decline of approximately 166 points. Opening in negative territory, the Bank Nifty saw a decrease of 0.34%, settling at 49,231.05 by the end of the trading session.

In contrast, the BSE Sensex exhibited resilience, recording a modest increase of 0.17% and closing in the green at a high of 74,611.11. Despite broader market fluctuations, the Sensex managed to maintain its upward trajectory, reflecting a mixed picture in the banking sector compared to other segments of the market.

In the sectorial front, the automotive sector has seen a notable uptick, with a 1.13% increase in overall gains. Ashok Leyland Ltd. emerges as a frontrunner within this sector, experiencing a significant gain of 4.54%, followed closely by Bosch Ltd., which saw a commendable increase of 4.07%.

Conversely, the media sector encountered a downturn, witnessing a decline of 1.58%. Notable losses within this sector include Nazara Technologies Ltd., which experienced a decrease of -2.69%, and Tips Industries Ltd., facing a loss of -2.12%.

Foreign Institutional Investors (FII/FPI) exhibited a net selling trend, with a buy value of Rs. 16,786.80 crore and a sale value of Rs. 17,751.27 crore, resulting in a net value of -Rs. 964.47 crore. Conversely, Domestic Institutional Investors (DII) showcased a net buying behavior, recording a buy value of Rs. 15,122.33 crore and a sale value of Rs. 13,769.89 crore, leading to a net value of Rs. 1,352.44 crore.

Bank Nifty

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

The gainers included Federal Bank with a 3.20% increase, AU Bank with a 1.55% increase, Bandhan Bank with a 1.25% increase, HDFC Bank with a 0.84% increase, and State Bank of India with a 0.51% increase.

On the other hand, the biggest losers in the sector included Kotak Bank with a 2.83% decline, Punjab National Bank with a 1.99% decline, Axis Bank with a 1.36% decline, ICICI Bank with a 0.95% decline, and IDFC First Bank with a 0.73% decline. These results suggest that some of the banking stocks performed better for the day.

Rupee Ends Marginally Lower Against US Dollar Amidst Global Factors

The Indian rupee maintained a narrow trading range, closing 3 paise lower at 83.46 against the US dollar, primarily influenced by a robust American currency and escalating crude oil prices in international markets. However, positive sentiment in domestic equities and the influx of foreign capital acted as mitigating factors, preventing a significant decline in the domestic currency.

At the interbank foreign exchange, the rupee commenced trading on a firm note at 83.41 and touched an intraday low of 83.49 against the dollar before settling at 83.46, marking a marginal decrease of 3 paise from its previous closing level.

Earlier in the week, the rupee had posted a modest gain of 2 paise against the dollar on Tuesday following a 7 paise depreciation on Monday. The forex market remained closed on Wednesday due to Maharashtra Day. Meanwhile, the US Federal Reserve’s decision to maintain benchmark interest rates unchanged, aligned with market expectations, exerted some influence on the currency market sentiment.

In parallel developments, the dollar index, a measure of the greenback’s strength against a basket of major currencies, edged up by 0.04% to 105.67. Additionally, Brent crude futures, the global oil benchmark, registered a 0.91% increase, reaching $84.20 per barrel. These global factors continue to shape the trajectory of the Indian rupee against the US dollar, with investors closely monitoring market developments for potential implications on currency movements.

Stocks Highlights

Bharat Petroleum Corporation Ltd. Demonstrates Positive Stock Movement

Bharat Petroleum Corporation Ltd. witnessed a notable surge in its share price, climbing by 4.61% from its previous closing value of Rs 607.35 to reach Rs 635.35. The company’s financial management is commendable, evident from its prudent allocation of resources. With less than 1% of operating revenues directed towards interest expenses and a mere 0.59% allocated to employee costs in the fiscal year ending 31st March 2023, Bharat Petroleum Corporation Ltd. maintains a favorable expense structure.

In terms of stock performance, Bharat Petroleum Corporation Ltd. delivered a 3-year return of 43.99%, albeit slightly lower than the benchmark Nifty 100’s return of 56.29%. However, when compared to Nifty Energy, the company’s returns of 43.99% still signify a robust performance, although trailing behind the index’s impressive 118.77% return over the same period.

Kotak Mahindra Bank Ltd. Faces Stock Price Decline

Contrary to Bharat Petroleum Corporation Ltd., Kotak Mahindra Bank Ltd. experienced a decline in its share price, dropping by -2.83% from its previous closing value of Rs 1,623.95 to Rs 1,578.00. Despite the setback, the bank demonstrates resilience in its loan book growth, recording a year-on-year increase of 17.94% in advances, surpassing its 5-year compound annual growth rate of 8.08%.

However, the bank’s cash utilization for investing activities witnessed a year-on-year decrease of 4.82%, reflecting a strategic shift in capital allocation. In terms of stock performance, Kotak Mahindra Bank Ltd. delivered a 3-year return of -7.14%, contrasting sharply with Nifty 100’s robust return of 56.29%. These developments underscore the challenges and opportunities within the banking sector, prompting investors to carefully assess the implications on their investment portfolios.

Advance Decline Ratio

Today, the advance-decline ratio was 1.01, and the market breadth was positive. The volatility index India Vix increased by 4.46 percent to settle at 13.45 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1302
Decliners – 1293
52Wk High – 160
52Wk Low – 13
High Band Hitters – 126
Low Band Hitters – 53
200d SMA – 20766
50d SMA – 22284
20d SMA – 22453

Top Gainers and Losers Stocks

The top gainers were BPCL (+4.61%), Power Grid (+3.71%), Asian Paint (+3.20%), Tata Motors (+2.07%), and Bajaj Auto (+2.05%).

The top losers were Kotak Bank (-2.83%), Tata Consumer (-1.43%), Bharti Airtel (-1.38%), Axis Bank (-1.36%), and HDFC Life (-1.23%).

Top Gainers and Losers Sector

The top gainers sector were Auto (+1.13%), Metal (+1.13%), Oil & Gas (+0.83%), Pharma (+0.81%), and FMCG (+0.46%).

The top losers sector were Media (-1.58%), Realty (-0.06%), and Consumer Durables (-0.01%).

SECTORS – NOTABLE ACTION
AUTO +1.13%
METAL +1.13%
OIL & GAS +0.83%
MEDIA -1.58%
REALTY -0.06%
CONSUMER DURABLES -0.01%

Stocks Ban List

(SEBI) F&O ban list (IDEA open at -13.25 and close at -13.20), and (BIOCON open at -300.00 and close at +310.90) 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.

ZEEL, BALRAMCHIN, SAIL, GMRINFRA, TATACHEM, ABFRL, INDIACEM, and LICHSGFIN stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 22500 to 22800 is the Nifty 50 trading range.

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