Did Nifty’s Quiet Finish Hint at a Fed Twist Today at Jackson Hole?

At the close, the Nifty 50 was at 24,823.15 up by 0.05%

The market started the day August 23 on a cautious note. The NSE Nifty 50 opened with a gap down but clawed its way back, finishing slightly up by 0.05% at 24,823.15. Investors played it safe, eyes firmly fixed on the much-anticipated Jackson Hole Symposium. All ears are on Fed Chair Jerome Powell, who might just hint at the timing of a possible interest rate cut in the US. Could a September reduction be on the table?

Despite the market inching higher for the seventh consecutive session, it was anything but smooth sailing. Choppy action kept traders on their toes, and the India VIX jumped 4.25% to 13.55, signaling rising nervousness. Meanwhile, small- and mid-cap stocks barely moved, reflecting investors’ cautious stance.

Sector-wise, most indices were in the red, with one clear outlier—the auto sector. Enthusiasm around festive season demand and new vehicle launches kept it afloat. But as Powell’s speech looms, everyone’s holding their breath for clarity. A dovish shift could bring rate cuts not seen since the pandemic’s peak, making this moment critical for global markets.

Technically, the Nifty seems a bit stretched. Momentum indicators hint at a potential pullback, with hourly charts showing a negative crossover. Intraday dips might be in the cards as the market juggles sector rotations and stock-specific plays.

So, here’s the big question: Will Powell’s words fuel a global rally, or leave markets in suspense? What’s your call—are we in for a surprise, or just more waiting?

Bank Nifty: Down by 0.10%

The Bank Nifty faced early headwinds, opening with a gap down and ending the session lower by 0.10%, closing in red at 50,933.45. In contrast, the BSE Sensex saw a modest rise, inching up by 0.04% and closing at a record high of 81,086.21.

In the sectorial front, the auto sector emerged as a clear winner, gaining a substantial 1.12%. Bajaj Auto Ltd. led the charge with an impressive 4.74% increase, followed closely by TVS Motor Company Ltd. at 2.19%.

However, the real estate sector faced a significant downturn, losing 2.43%. Macrotech Developers Ltd. and Prestige Estates Projects Ltd. bore the brunt of the decline, losing -4.90% and -3.55% respectively.

Foreign Institutional Investors (FII) recorded a notable net buying activity. Their buy value stood at Rs. 16,775.70 crore, while their sale value was Rs. 14,831.22 crore, resulting in a net inflow of Rs. 1,944.48 crore.

On the domestic front, Domestic Institutional Investors (DII) displayed stronger net buying with a buy value of Rs. 13,341.03 crore and a sale value of Rs. 10,445.01 crore, leading to a net inflow of Rs. 2,896.02 crore.

Bank Nifty

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

The gainers included ICICI Bank with a 1.13% increase, and IndusInd Bank with a 0.54% increase.

On the other hand, the biggest losers in the sector included Bandhan Bank with a 1.91% decline, Federal Bank with a 1.28% decline, IDFC First Bank with a 1.21% decline, AU Bank with a 1.17% decline, and Punjab National Bank with a 0.86% decline. These results suggest that most of the banking stocks not performed better for the day.

Gold and Silver Rate (INR) 23rd August, 2024

Rupee Gains Ground Amid Oil Price Stability

The Indian rupee strengthened by 5 paise against the US dollar in early trading on Friday, supported by a decline in crude oil prices and continued foreign fund inflows.

The interbank foreign exchange market saw the rupee open at 83.93, quickly appreciating to 83.88. This marked a notable improvement from Thursday’s closing price of 83.93. The rupee’s resilience can be attributed to the Reserve Bank of India’s intervention to maintain stability within the 83.90-95 range.

Crude oil prices, a key factor influencing the rupee, remained relatively stable. The global benchmark, Brent crude, experienced a slight increase of 0.12% to $77.31 per barrel. This stability provided a positive environment for the rupee, given India’s significant oil imports.

Meanwhile, the dollar index, which measures the US dollar’s strength against a basket of six currencies, declined by 0.15% to 101.35 points. This contributed to the rupee’s appreciation as the greenback weakened.

Overall, the rupee’s performance was influenced by a combination of factors, including lower oil prices, foreign fund inflows, and the Reserve Bank of India’s intervention. As the Indian economy continues to navigate global market dynamics, the rupee’s trajectory will remain closely watched.

Stocks Highlights

Bajaj Auto Ltd., a leading player in the automotive industry, witnessed its share price climb by a substantial 4.74%. This marks a significant increase from its previous closing price of Rs 9,914.20. The stock is currently trading at Rs 10,384.45. Notably, such intraday gains of over 5% have occurred only 1.34% of the time in the past 16 years, highlighting the rarity of such a significant move.

The company has also taken a strategic step by undertaking new debt for the first time in the last five years. This move suggests that Bajaj Auto is looking to capitalize on growth opportunities or potentially restructure its finances. Furthermore, its annual revenue growth of 23.02% has outperformed its three-year CAGR of 16.68%, indicating a positive trend in its financial performance.

In terms of shareholder returns, Bajaj Auto has significantly outperformed the Nifty 100 index over the past three years. The stock has delivered a return of 164.27%, while the Nifty 100 has returned 55.35%.

In contrast, LTIMindtree Ltd., a leading global technology services and consulting firm, has seen a slight decline in its share price of -1.27%. The stock is currently trading at Rs 5,632, down from its previous closing price of Rs 5,704.40. Intraday declines of this magnitude have been relatively infrequent, occurring only 0.7% of the time in the past eight years.

The company’s financial health appears solid, with interest expenses accounting for less than 1% of its operating revenues and employee costs representing 64.0% of its total expenses. However, LTIMindtree’s three-year return of 15.98% has fallen short of the Nifty 100’s performance.

Advance Decline Ratio

Today, the advance-decline ratio was 0.89, and the market breadth was negative. The volatility index India Vix increased by 4.25 to settle at 13.55 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1266
Decliners – 1421
52Wk High – 186
52Wk Low – 11
High Band Hitters – 139
Low Band Hitters – 39
200d SMA – 22345
50d SMA – 24276
20d SMA – 24544

Top Gainers and Losers Stocks

The top gainers were Bajaj Auto (+4.74%), Coal India (+1.70%), Bharti Airtel (+1.59%), Tata Motors (+1.58%), and Sun Pharmaceutical (+1.39%).

The top losers were LTIM (-1.27%), Wipro (-1.16%), ONGC (-1.01%), Asian Paint (-0.99%), and Titan (-0.93%).

Top Gainers and Losers Sectors

The top gainers sector were Auto (+1.12%).

The top losers sector were Realty (-2.43%), Media (-1.29%), IT (-1.00%), Oil & Gas (-0.66%), and Metal (-0.38%).

SECTORS – NOTABLE ACTION
AUTO +1.12%
REALTY -2.43%
MEDIA -1.29%
IT -1.00%

Stocks Ban List

(SEBI) F&O ban list (INDIACEM close at -367.40), (CHAMBLFERT open at close at -508.95), (BSOFT close at -601.25), (IEX close at -188.97), (RBLBANK close at -224.34), (AARTIIND close at -620.80), (HINDCOPPER close at -316.30), (NATIONALUM close at -173.16), (ABFRL close at +319.50), (SUNTV close at -769.35), (GNFC close at -666.85), (LICHSGFIN close at -672.60), (GRANULES close at -683.65), and (PEL close at +1052.50) 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.

PNB, BANDHANBNK, IDFCFIRSTB, EXIDEIND, LTF, MANAPPURAM, SAIL, NMDC, CONCOR, and BIOCON stocks has the possibilities of entrance in the ban list.

GNFC, LICHSGFIN, GRANULES, and PEL stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 24600 to 24950 is the Nifty 50 trading range.

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