Caution Persists as Stocks Weaken Ahead of US Fed Minutes

At the close, the Nifty 50 was at 17,844.60 down by 0.56%

Nifty 50 index started the day on a positive note but closed in the negative territory with a decline of 0.56 percent. The Nifty 50 index closed near the level of 17846. Monday, the Indian shares faced challenges in determining a clear direction. The reason behind this could be attributed to concerns that the US Federal Reserve may maintain higher interest rates for a longer period of time, which can have an impact on the global markets, including India.

Concerns about the future trajectory of interest rate hikes in the United States persisted as official data revealed an increase in export prices in January. This data serves as a reminder of the potential economic implications of the Federal Reserve’s monetary policy decisions. Investors are eagerly anticipating the minutes of the Federal Reserve’s meeting, due to be released on Wednesday, to gain insight into the U.S. central bank’s future rate-hiking trajectory. U.S. markets will be closed on Monday in observance of a local holiday.

Buzzing

The market had a gaining momentum and staying in the green during the first half. However, selling pressure across sectors, excluding IT and auto, wiped out all the gains in the second half, pushing the Nifty down to 17,844.

Enduring a bear hammering in 2022, India’s IT sector was crowned the worst-performing sector. However, it has since risen from the ashes and is now busy creating wealth for investors amidst a market fraught with issues such as FII selloffs, expensive valuations, and the Adani rout.

The Nifty IT Pack, an index of the top ten information technology companies, has seen an impressive 8.5% increase in 2023, making it the best-performing sector after enduring the most severe selloff since the 2008 Global Financial Crisis. This remarkable surge is a testament to the resilience of the IT sector and its ability to rebound from even the most challenging of circumstances.

Bank Nifty: Down by 1.05%

The Bank Nifty opened in the green but closed in the red, down 1.05% at 40,701.70. Similarly, the BSE Sensex experienced a 0.51% decline, closing at a low of 60,691.54. This marked a disappointing end to the trading session, with both indices closing in the red.

Sectors, auto and information technology sectors, which rose by 0.5 percent, all other sectoral indices ended in the red. The Nifty Bank, Energy, and PSU Bank sectors slipped 1 percent each, while the Metal and Pharma sectors were also down.

The Metal sector is often affected by changes in global commodity prices, as it is a key producer and exporter of metals such as steel and aluminum. The Pharma sector may be impacted by changes in government regulations, changes in demand for medicines, and the development of new drugs

Bank Nifty

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

The gainers included Bandahn Bank with a 0.06% increase. On the other hand, the biggest losers in the sector included AU Bank with a 1.86% decline, IDFC First Bank with a 1.79% decline, Bank of Baroda with a 1.38% decline, Kotak Bank with a 1.26% decline and Axis Bank with a 1.18% decline. These results suggest that banking stocks not performed better for the day.

Advance Decline Ratio

Today, the advance-decline ratio was 0.58, and the market breadth was negative. The volatility index India Vix increased by 2.27 percent to settle at 13.38 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 824
Decliners – 1421
52Wk High –  50
52Wk Low – 133
High Band Hitters – 60
Low Band Hitters – 76
200d SMA – 17337
50d SMA – 18021
20d SMA – 17839

Top Gainers and Losers Stocks

The top gainers were Divi’s Laboratories (+2.55%), UltraTech Cement (+1.62%), Tech Mahindra (+1.40%), Power Grid (+1.10%), and Hindalco (+0.93%).

The top losers were Adani Enterprises (-6.37%), Cipla (-6.12%), Britannia (-1.90%), BPCL (-1.70%), and UPL (-1.59%).

Top Gainers and Losers Sector

The top gainers sector were IT (+0.54%) and Auto (+0.28%).

The top losers sectors were Oil & Gas (-1.14%), Financial Services (-0.98%), Pharma (-0.81%), Metal (-0.77%), and Realty (-0.69%).

The Nifty Midcap 50 was down by 0.13 percent, while the Nifty Small Cap 50 down by 0.48 percent on the day.

The Nifty Midcap 50 index currently closed at 8,647.30, while the Nifty Small Cap 50 index currently closed at 4,241.00.

SECTORS – NOTABLE ACTION
IT +0.54%
AUTO +0.28%
OIL & GAS -1.14%
FINANCIAL SERVICES -0.98%
PHARMA -0.81%

Stocks Ban List

(SEBI) F&O ban list (IBULHSGFIN open at 113.50 and close at 111.50), and (AMBUJACEM open at 349.70 and close at 352.45) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned IBULHSGFIN, and AMBUJACEM 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.

IBULHSGFIN, and AMBUJACEM are exited from ban list.

IDEA, INDIACEM, DELTACORP, and ADANIENT has a possibilites of entery in a ban list.

Daily Pivots

As per the above pivots data, 17760 to 17970 is the Nifty 50 trading range

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