At the close, the Nifty 50 was at 18,563.40 down by 0.38%
Today, the NSE Nifty 50 index commenced on a bullish note, witnessing a significant surge in its opening value. However, as the day progressed, it experienced a decline of 0.38 percent and concluded in the bearish territory. Notably, the Nifty index plummeted below the crucial support level of 18600.
The domestic market has been under significant selling pressure for an extended period, primarily due to investor anticipation of the upcoming domestic inflation data, which is scheduled for release on Monday. This anticipation has been further fueled by the Reserve Bank of India’s (RBI) cautious stance, as they have refrained from making aggressive inflation forecast cuts.
Despite this, market participants remain optimistic about a potential further moderation in the Consumer Price Index (CPI) inflation for May, which currently stands at 4.7%. However, global cues have added to the market’s lack of support, with the United States reporting elevated unemployment claims ahead of the inflation figures and the Federal Reserve meeting.
Sectorial front, the Realty sector emerged as the slight top gainer with a marginal increase of 0.04%. Within this sector, MACROTECH DEVELOPERS LIMITED experienced a gain of 3.59%, PRESTIGE ESTATES PROJECTS LIMITED gained by 1.62%, and SOBHA LIMITED recorded a gain of 0.24%. However, the remaining sectors closed in the red zone. In particular, the FMCG sector was the top loser with a decline of 0.92%. Within this sector, GODREJ CONSUMER PRODUCTS LIMITED experienced a loss of 2.43%, MARICO LIMITED recorded a decline of 2.28%, and EMAMI LIMITED witnessed a decrease of 1.76%.
Bank Nifty: Down by 0.01%
Bank Nifty commenced its trading session on a positive note, displaying a green opening, but ultimately experienced a slight decline of 0.01 percent and concluded in the red, settling at a value of 43,989.00. Correspondingly, the BSE Sensex witnessed a decrease of 0.35 percent and reached a low point of 62,625.63 before closing in the negative territory.
Currently, the Bank Nifty index is experiencing a downward trend as the bears have taken control at higher levels. The resistance zone, ranging from 44,300 to 44,500, has proven to be a formidable obstacle, hindering any significant upward momentum in the index. However, there is a support level at 43,700 that could potentially provide a buying opportunity for investors.
Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) recorded a buy value of 13,631.62 crore rupees and a sale value of 13,940.59 crore rupees, resulting in a net value of -308.97 crore rupees. Similarly, Domestic Institutional Investors (DII) registered a buy value of 6,234.12 crore rupees and a sale value of 4,988.61 crore rupees on the same date, leading to a net value of 1,245.51 crore rupees.
The Nifty Banking sector had some gainers and some losers for the day.
The gainers included IndusInd Bank with a 2.03% increase, Axis Bank with a 1.30% increase, AU Bank with a 0.68% increase, ICICI Bank with a 0.12% increase, and HDFC Bank with a 0.05% increase. On the other hand, the biggest losers in the sector included State Bank of India with a 1.65% decline, Bandhan Bank with a 1.42% decline, Bank of Baroda with a 1.36% decline, Punjab National Bank with a 1.25% decline, and Federal Bank with a 0.87% decline. These results suggest that some banking stocks performed better for the day.
IndusInd Bank Ltd. witnessed a positive movement in its share price, surging by 2.03% compared to its previous close at Rs 1,303.85. The stock of IndusInd Bank Ltd. last traded at Rs 1,330.30. Notably, a daily MACD crossover signal emerged yesterday, indicating a potential trend reversal. Historical data reveals an average price decline of -3.45% within 10 days following this signal over the past decade. Furthermore, the company’s annual revenue growth stood at an impressive 16.51%, surpassing its 3-year Compound Annual Growth Rate (CAGR) of 7.54%. In addition, IndusInd Bank Ltd. reported a YoY increase of 21.28% in its advances, outperforming its 5-year CAGR of 9.24%.
Hero MotoCorp Ltd. observed a decline in its share price, experiencing a decrease of -2.19% compared to its previous close at Rs 2,964.80. The stock of Hero MotoCorp Ltd. last traded at Rs 2,900.00. Over a 3-year period, the stock delivered a return of 24.19%, which is significantly lower than the Nifty 100’s return of 80.34%. Notably, the company showcased robust annual revenue growth of 15.35%, outperforming its 3-year Compound Annual Growth Rate (CAGR) of 4.97%. Moreover, within the last 18 years, only 1.42% of the trading sessions witnessed intraday gains exceeding 5%.
The Indian rupee demonstrated minimal fluctuations, remaining within a narrow trading range of 82.41-82.52. This was due to the anticipation of the upcoming US interest rate decision, which was eagerly awaited by market participants.
The fluctuation of crude oil prices has had a significant impact on the range-bound movement of the rupee. Additionally, the depreciation of the dollar index has provided support to the rupee, enabling it to remain above the critical threshold of 82.50.
It is important to note that the relationship between crude oil prices and the rupee is complex and multifaceted. As a net importer of crude oil, India is heavily dependent on global oil prices. Any significant changes in the price of crude oil can have a ripple effect on the Indian economy, including the value of the rupee.
Furthermore, the depreciation of the dollar index has been a contributing factor to the rupee’s stability. As the dollar weakens, other currencies, including the rupee, tend to strengthen. This trend has helped to bolster the rupee’s position in the global market.
Advance Decline Ratio
Today, the advance-decline ratio was 0.80, and the market breadth was negative. The volatility index India Vix decreased by 1.22 percent to settle at 11.12 and the FIIs were net sellers today.
DAILY MARKET ACTION
Advancers – 1025
Decliners – 1283
52Wk High – 85
52Wk Low – 16
High Band Hitters – 65
Low Band Hitters – 47
200d SMA – 17871
50d SMA – 18047
20d SMA – 18444
Top Gainers and Losers Stocks
The top gainers were IndusInd Bank (+2.03%), Axis Bank (+1.30%), Power Grid (+1.06%), Adani Enterprises (+1.02%), and LT (+0.98%).
The top losers were Hero MotoCorp (-2.19%), HDFC Life (-2.00%), Divi’s Laboratories (-2.00%), Eicher Motors (-1.93%), and Tata Steel (-1.80%).
Top Gainers and Losers Sector
The top gainers sectors were Realty (+0.04%).
The top losers sectors were FMCG (-0.92%), Media (-0.83%), IT (-0.82%), Consumer Durables (-0.70%), and Oil & Gas (-0.48%).
The Nifty Midcap 50 was down by 0.11 percent, while the Nifty Small Cap 50 was down by 0.16 percent on the day.
The Nifty Midcap 50 index currently closed at 9,598.85, while the Nifty Small Cap 50 index currently closed at 4,738.80.
SECTORS – NOTABLE ACTION
Stocks Ban List
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.
DELTACORP, ZEEL, BHEL, HINDCOPPER, and RBLBANK Face Possible Entry in Ban List.
There are indications that INDIACEM may have the potential to be removed from the ban list.
As per the above pivots data, 18510 to 18650 is the Nifty 50 trading range.
Read previous -Daily Insights- here
RBI Keeps Rates Unchanged, Highlights Ongoing Inflation Battle
Markets Gain Momentum Amid Sector-Wide Buying
Market Flat with Volatility as RBI Commences Meeting
Global Equity Optimism Boosts Local Market Sentiment
This article is only for educational purposes and is not an investment advice.