Biggest Single-Day Decline for Nifty Midcap Since Oct 23

At the close, the Nifty 50 was at 21,150.15 down by 1.41%

The NSE Nifty 50 index encountered a tumultuous ride today, initially opening on a positive note but subsequently plummeting by 1.41 percent by day’s end, resting below the 21,200 mark. The morning surge swiftly gave way to a steep downturn, concluding close to the day’s lowest levels due to extensive selling activities.

In an unexpected turn, the market surged to record highs in its early hours, only to experience a drastic reversal as the day progressed, ultimately settling near the lowest points. A primary factor affecting market sentiment revolves around the disruptions in the Red Sea region, causing major shipping companies to halt operations after attacks by Iran-backed Houthi rebels. This led to the launch of a multinational naval operation by the US to safeguard Red Sea routes.

While this downturn marks a significant shift after seven weeks of upward movement, it’s premature to declare an end to the uptrend without the Nifty breaking the 20-day Exponential Moving Average (EMA) at 20,700 on the daily chart. Analysts advocate favoring index majors and acquiring high-quality stocks amid this phase, emphasizing caution in midcap and small-cap holdings by maintaining stringent stop losses due to increased pressure in these spaces.

The sudden sell-off in domestic markets, despite favorable global trends, stemmed from profit booking following a sharp rally, notably impacting mid- and small-cap stocks. Additionally, the surge in crude prices acted as a catalyst for investors to secure profits. This occurrence underscores the importance of careful positioning and vigilance amidst volatile market conditions.

Bank Nifty: Down by 0.89%

The Bank Nifty commenced the day on a positive note, opening in the green but eventually concluded the session with a downturn, marking a decrease of 0.89%. It closed in the red at 47,445.30, reflecting a downward trend in the banking sector’s index. Similarly, the BSE Sensex, a benchmark index of the Bombay Stock Exchange, encountered a decline of 1.30% during the trading session, closing at a low of 70,506.31.

Today’s market has seen a notable downturn in the sectorial front, with no evident gainers. The Media sector, in particular, has experienced a significant decline, plummeting by 5.11%. Within this sector, Dish TV India Ltd. has incurred a substantial loss of -9.81%, Hathway Cable & Datacom Ltd. follows suit with a decline of -8.19%, while Zee Entertainment Enterprises Ltd. also saw a decrease of -6.74%.

FIIs/FPIs exhibited a net selling behavior in the Indian market. Their selling activities surpassed their buying with a sale value of Rs. 20,512.08 crore against a buy value of Rs. 19,190.00 crore, resulting in a negative net value of Rs. -1,322.08 crore. Conversely, domestic institutional investors (DIIs) displayed a contrasting trend, showcasing a stronger net buying stance. Their buying activity amounted to Rs. 16,194.18 crore, exceeding their sales worth Rs. 11,439.84 crore, resulting in a positive net value of Rs. 4,754.34 crore.

Bank Nifty

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

The gainers included AU Bank with a 3.16% increase. On the other hand, the biggest losers in the sector included Punjab National Bank with a 5.14% decline, Bandhan Bank with a 4.04% decline, IDFC First Bank with a 3.49% decline, Bank of Baroda with a 3.23% decline, and State Bank of India with a 3.18% decline. These results suggest that most of the banking stocks not performed better for the day.

Rupee Holds Steady Amidst Equity Sell-off and Oil Supply Concerns

On Wednesday, the Indian rupee concluded unchanged at 83.18 against the US dollar amidst substantial sell-offs in equity markets, fueled by apprehensions regarding oil supplies via the Red Sea route. Despite the US dollar index remaining below the 102 level, the rupee faced downward pressure due to foreign fund outflows, influenced by the volatile nature of crude oil prices.

Trading within a narrow band at the interbank foreign exchange market, the rupee commenced at 83.17, oscillating between a high of 83.13 and a low of 83.18 against the dollar, ultimately settling at its previous closing figure of 83.18 (pro).

Simultaneously, the dollar index, measuring the dollar against a basket of six currencies, experienced a marginal 0.08% uptick, reaching 101.87 on Wednesday.

In the global oil market, the Brent crude, a key benchmark, rose by 0.78% to USD 79.85 per barrel, contributing to the prevailing unease over oil supply disruptions through the Red Sea region.

The rupee’s stability amid market volatilities, driven by equity sell-offs and concerns over oil supplies, reflects a delicate balance influenced by both domestic and global factors. The impact of foreign fund movements, coupled with fluctuations in crude oil prices, continues to play a pivotal role in shaping the rupee’s performance against the US dollar.

Stocks Highlights

Oil And Natural Gas Corporation Ltd. observed a 1.87% rise in share price, reaching Rs 204.05 from its previous close of Rs 200.30. The company’s annual revenue growth of 28.41% outperformed its 3-year Compound Annual Growth Rate (CAGR) of 16.24%. Notably, over the last 19 years, only 1.36% of trading sessions witnessed intraday gains higher than 5%. Moreover, the company allocated 1.25% of its operating revenues to interest expenses and 2.36% towards employee costs as of March 31, 2023.

Contrarily, Adani Ports & Special Economic Zone Ltd. observed a -6.24% decline in its share price, dropping to Rs 1,007.00 from the previous close of Rs 1,074.00. The company’s annual revenue growth of 23.86% surpassed its 3-year CAGR of 17.53%. Over the last 16 years, only 2.84% of trading sessions experienced intraday declines higher than 5%. Notably, the company allocated 11.33% of its operating revenues towards interest expenses and 5.65% towards employee costs as of March 31, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 0.14, and the market breadth was negative. The volatility index India Vix increased by 4.20 percent to settle at 14.45 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 311
Decliners – 2163
52Wk High –  198
52Wk Low – 23
High Band Hitters – 71
Low Band Hitters – 164
200d SMA – 19020
50d SMA – 19953
20d SMA – 20682

Top Gainers and Losers Stocks

The top gainers were ONGC (+1.87%), Tata Consumer (+1.02%), Britannia (+0.28%), and Cipla (+0.07%).

The top losers were Adani Ports (-6.24%), Adani Enterprises (-5.65%), Tata Steel (-4.84%), UPL (-4.78%), and Coal India (-4.14%).

Top Gainers and Losers Sector

The top losers sector were Media (-5.11%), Metal (-3.82%), Realty (-2.43%), Auto (-2.28%), and Oil & Gas (-1.89%).

SECTORS – NOTABLE ACTION
MEDIA -5.11%
METAL -3.82%
REALTY -2.43%

Stocks Ban List

(SEBI) F&O ban list (DELTACORP open at +146.80 and close at -138.25), (BALRAMCHIN open at -398.95 and close at -385.20), (INDUSTOWER open at -197.75 and close at -180.65), (IRCTC open at +886.70 and close at -815.15), (PEL open at -941.00 and close at -885.35), (RBLBANK open at -286.70 and close at -267.90), (SAIL open at -112.35 and close at -103.70), (MANAPPURAM open at +174.75 and close at -164.15), (NATIONALUM open at -113.50 and close at -104.30), .75), and (ZEEL open at -272.50 and close at -251.95) 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.

GRANULES, ASHOKLEY, IEX, ABCAPITAL, IBULHSGFIN, TATACHEM, CHAMBLFERT, BHEL, ESCORTS, GNFC, and CANBK stocks has the possibilities of entrance in the ban list.

ZEEL stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 20900 to 21500 is the Nifty 50 trading range.

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