Relief Rally Ends as Nifty 50 Succumbs to Selling Pressure

At the close, the Nifty 50 was at 17,589.60 down by 0.93%

NSE Nifty 50, which is the stock market index for the National Stock Exchange of India, started the day lower than its previous close and continued to decline throughout the day, ultimately closing in the red with a 0.93% loss. Additionally, it appears that the index closed below the 17,600 level.

Indian shares experienced a significant decline on Thursday, marking the biggest one-day drop in over two weeks. This follows a three-session winning streak and suggests that investors may have become more cautious due to concerns about a prolonged high-interest rate regime.

High-interest rates can impact the stock market in various ways. On the one hand, they can make borrowing more expensive for companies, which can lead to lower profits and weaker earnings growth. On the other hand, high-interest rates can also make bonds and other fixed-income investments more attractive compared to stocks, which can lead to a shift in investor preferences away from equities.

Buzzing

It appears that the selling pressure on the Indian stock market on that day may have been driven by a number of factors. One of these factors was the US Federal Reserve’s signaling of further interest rate hikes to combat inflation, which may have reignited concerns about global economic growth. In addition, the rising bond yields in recent sessions may have contributed to the risk-off sentiment in equities, which could lead to tighter liquidity going forward.

Rising bond yields can make fixed-income investments more attractive compared to equities, which can lead to a shift in investor preferences away from stocks. This can put pressure on stock prices, especially if investors become more risk-averse and begin to sell off their equity holdings.

Bank Nifty: Down by 0.77%

Bank Nifty and the BSE Sensex, two key stock market indices in India, experienced declines on the same day. The Bank Nifty, which tracks the performance of banking stocks listed on the National Stock Exchange of India, opened lower and continued to decline throughout the day, ultimately closing in the red with a 0.77% loss. Similarly, the BSE Sensex, which tracks the performance of 30 large and well-established companies listed on the Bombay Stock Exchange, also opened lower and experienced a decline throughout the day, ultimately closing in the red with a 0.90% loss.

Sectoral performance of the Indian stock market on that day. It appears that the Nifty Auto index, which tracks the performance of automobile manufacturers listed on the National Stock Exchange of India, experienced a decline of 1.8%. Additionally, the Information Technology sector and the PSU Bank sector both declined by 1%.

On the other hand, the Nifty Bank sector, Infrastructure sector, Energy sector, and Pharma sector all experienced more moderate declines of between 0.4% and 0.9%.

Bank Nifty

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

The gainers included Axis Bank with a 0.56% increase. On the other hand, the biggest losers in the sector included ICICI Bank with a 1.80% decline, Bandhan Bank with a 1.52% decline, Kotak Bank with a 1.45% decline, Bank of Baroda with a 1.44% decline and Federal Bank with a 1.32% decline. These results suggest that some banking stocks not performed better for the day.

Advance Decline Ratio

Today, the advance-decline ratio was 0.66, and the market breadth was negative. The volatility index India Vix increased by 2.20 percent to settle at 12.73 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 904
Decliners – 1360
52Wk High –  44
52Wk Low – 54
High Band Hitters – 72
Low Band Hitters – 45
200d SMA – 17421
50d SMA – 17839
20d SMA – 17688

Top Gainers and Losers Stocks

The top gainers were Tata Steel (+1.60%), LT (+1.02%), Apollo Hospitals (+0.82%), Bharti Airtel (+0.78%), and Cipla (+0.60%).

The top losers were Adani Enterprises (-4.82%), M&M (-3.47%), SBI Life (-2.81%), Reliance (-2.37%), and Adani Ports (-2.24%).

Top Gainers and Losers Sector

The top gainers sectors were Metal (+0.06%).

The top losers were Auto (-1.83%), Consumer Durables (-1.22%), Realty (-1.17%), IT (-1.08%) and FMCG (-1.01%),.

The Nifty Midcap 50 was down by 0.62 percent, while the Nifty Small Cap 50 was down by 0.47 percent on the day.

The Nifty Midcap 50 index currently closed at 8,690.95, while the Nifty Small Cap 50 index currently closed at 4,243.95.

SECTORS – NOTABLE ACTION
METAL +0.06%
AUTO -1.83%
CONSUMER DURABLES -1.22%
REALTY -1.17%

Stocks Ban List

(SEBI) F&O ban list (BALRAMCHIN open at 400.35 and close at 396.75) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned BALRAMCHIN from trading in the futures and options (F&O) segment of 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, IBULHSGFIN and ADANIENT has a possibilites of entery in a ban list.

Daily Pivots

As per the above pivots data, 17510 to 17730 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Crosses 17,700 Mark on the Occasion of Happy Holi
Strong End to the Week for Nifty 50 Equities with Impressive Recovery
Selling Pressure Continues in Nifty

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