Caution Grips Domestic Indices Amid Data-Packed Week

At the close, the Nifty 50 was at 18,601.50 up by 0.21%

Today, the NSE Nifty 50 commenced the trading session on a positive note, registering a significant surge and witnessing an increase of 0.21 percent. The market displayed robust momentum throughout the day, ultimately concluding on a positive note. Moreover, the Nifty index managed to cross the noteworthy milestone of 18600, further accentuating the bullish sentiment in the market.

The market showed a mostly stable pattern, ending on a positive note due to the steady state of global markets. Investors were careful but hopeful as they awaited the US Federal Open Market Committee (FOMC) meeting. While there are signs that the Federal Reserve may not increase rates this time, any upward shift in rates could cause worries about worldwide economic growth and lead to a brief correction. It is crucial to stay alert and keep a close eye on the situation.

The Information Technology (IT) sector emerged as the top gainer, exhibiting a growth of 1.51%. Within this sector, HCL TECHNOLOGIES LIMITED recorded a gain of 2.53%, while L&T TECHNOLOGY SERVICES LIMITED observed a gain of 2.14%. On the other hand, the Financial Services sector experienced a slight decline of 0.06%. Specifically, HDFC BANK LIMITED witnessed a decrease of 0.60%, and HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED recorded a loss of 0.38% within this sector.

Bank Nifty: Down by 0.10%

The forecast is for the Indian CPI to ease, while the policy rates of the Fed and BoJ will remain steady. Key occurrences to watch out for are the unveiling of domestic IIP and WPI inflation data and policy declarations from the ECB. Despite the possibility of a downturn, the ECB might choose to increase rates. It is essential for investors to stay up-to-date and monitor these happenings closely in order to make informed choices and navigate the markets with assurance.

Bank Nifty commenced the trading session on a positive note, displaying an upward movement, but later experienced a slight decline of 0.10 percent, concluding the day in the red at 43,944.20. In parallel, the BSE Sensex demonstrated a favorable trend, registering a gain of 0.16 percent and closing in the green at an impressive high of 62,724.71.

Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs) recorded a buying value of Rs. 6,321.86 crore, while their selling value stood at Rs. 6,948.48 crore, resulting in a net value of -Rs. 626.62 crore.

Simultaneously, Domestic Institutional Investors (DIIs) reported a buying value of Rs. 6,663.64 crore and a selling value of Rs. 4,869.79 crore on the same date, generating a net value of Rs. 1,793.85 crore.

Bank Nifty

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

The gainers included IDFC First Bank with a 1.67% increase, Bank of Baroda with a 1.22% increase, Punjab National Bank with a 0.88% increase, Kotak Bank with a 0.28% increase, and Bandhan Bank with a 0.27% increase. On the other hand, the biggest losers in the sector included HDFC Bank with a 0.60% decline, ICICI Bank with a 0.14% decline, AU Bank with a 0.03% decline, and State Bank of India with a 0.03% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

Bharat Petroleum Corporation Ltd. has recently experienced a noteworthy surge in its share price, increasing by 3.32% in comparison to its previous closing value of Rs 359.45. As of the latest trading session, the stock of Bharat Petroleum Corporation Ltd. was last traded at Rs 371.40. However, over a period of three years, the stock displayed a negative return of -3.86%, which is in stark contrast to the Nifty 100 index’s substantial return of 83.51%.

It is worth noting that despite the stock’s negative return over the past three years, the company’s annual revenue growth of 35.99% has outperformed its three-year compound annual growth rate (CAGR) of 18.13%. This is a testament to the company’s resilience and ability to adapt to changing market conditions.

Power Grid Corporation of India Ltd. recently experienced a slight decline in its share price, decreasing by -1.29% compared to its previous closing value of Rs 244.90. As of the latest trading session, the stock of Power Grid Corporation of India Ltd. was last traded at Rs 241.75. However, over the past three years, the stock has displayed an impressive return of 96.35%, outperforming the Nifty 100 index which recorded a return of 83.51%.

During the week ending on June 9, 2023, a weekly stochastic crossover was observed, which historically has resulted in an average price gain of 5.41% within 7 weeks over the past 10 years. This signal is a positive indicator for investors and suggests that the stock may experience a price increase in the near future.

Furthermore, the Power Grid Corporation of India Ltd. has witnessed a quarter-on-quarter revenue growth of 8.91%, marking the highest growth rate in the last three years. This is a promising sign for the company and indicates that it is on a positive trajectory.

Buzz

On Monday, the Indian rupee saw a significant increase of 7 paise, reaching 82.40 against the US dollar, thanks to the recent drop in crude oil prices and a favorable trend in the domestic equity market. Despite recent fluctuations due to economic and geopolitical factors, this positive development is a promising sign for investors and businesses.

During the interbank foreign exchange session, the Indian rupee opened at 82.45 against the US dollar and then rose to 82.40, representing a significant gain of 7 paise compared to its previous closing value. This positive movement in the currency market is a promising sign for the Indian economy.

The dollar index, which gauges the potency of the US dollar against a basket of six prominent currencies, demonstrated a slight uptick of 0.07 percent, reaching a value of 103.62.

In contrast, Brent crude futures, the worldwide benchmark for oil prices, underwent a decrease of 1.12 percent, settling at $73.95 per barrel.

Advance Decline Ratio

Today, the advance-decline ratio was 1.42, and the market breadth was positive. The volatility index India Vix increased by 1.12 percent to settle at 11.25 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1368
Decliners – 963
52Wk High –  119
52Wk Low – 15
High Band Hitters – 77
Low Band Hitters – 63
200d SMA – 17875
50d SMA – 18079
20d SMA – 18454

Top Gainers and Losers Stocks

The top gainers were BPCL (+3.32%), HCL Technologies (+2.53%), Infosys (+2.11%), NTPC (+1.86%), and Adani Enterprises (+1.68%).

The top losers were Power Grid (-1.29%), LT (-0.97%), Cipla (-0.90%), Maruti (-0.80%), and Titan (-0.66%).

Top Gainers and Losers Sector

The top gainers sectors were IT (+1.51%), Realty (+1.41%), Media (+1.13%), Oil & Gas (+0.85%), and Metal (+0.61%).

The top losers sectors were Financial Services (-0.06%), and Pharma (-0.04%).

The Nifty Midcap 50 was up by 0.80 percent, while the Nifty Small Cap 50 was up by 1.16 percent on the day.

The Nifty Midcap 50 index currently closed at 9,675.65, while the Nifty Small Cap 50 index currently closed at 4,793.70.

SECTORS – NOTABLE ACTION
IT +1.51%
REALTY +1.41%
MEDIA +1.13%
FINANCIAL SERVICES -0.06%
PHARMA -0.04%

Stocks Ban List

(SEBI) F&O ban list  (IEX open at -126.00 and close at +123.60), (INDIACEM open at +230.35 and close at -230.10), and (IBULHSGFIN open at -110.00 and close at -109.35) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned IEX, INDIACEM, and IBULHSGFIN 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.
BHEL, DELTACORP, ZEEL, HINDCOPPER, HAL and RBLBANK Face Possible Entry in Ban List.

Daily Pivots

As per the above pivots data, 18550 to 18650 is the Nifty 50 trading range.

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