Flat Ending to Volatile Session in Markets

At the close, the Nifty 50 was at 18,314.80 up by 0.10%

NSE Nifty 50 commenced trading on a lackluster note, but eventually surged by 0.10 percent and ultimately concluded the session in a verdant position, with the index crossing the highly-coveted 18300 threshold. This momentous achievement exudes an air of flawless professionalism and stylish elegance, lending a touch of sophistication to the overall market sentiment.

Weak economic indicators from the US and China cast a shadow over the Asian market, signalling slower economic growth. Concerns intensified over a potential US recession, as jobless claims hit an October 2021 high and producer prices rose modestly. This led to a reaction in US Treasury yields, suggesting a potential pause in central bank rate hikes. Meanwhile, the domestic market recovered in the latter half as investors eagerly awaited the release of Indian inflation data, anticipated to cool down below 5%, reflecting a calm and composed market demeanor.

In terms of sector performance, the Auto sector emerged as the top gainer with a rise of 0.77%. Notably, EICHER MOTORS LIMITED recorded a significant gain of 5.86%, followed by MAHINDRA & MAHINDRA LIMITED with a gain of 1.90%, and SAMVARDHANA MOTHERSON INTERNATIONAL LIMITED with a gain of 0.71%. In contrast, the Metal sector was the top loser with a decline of 1.84%. Within this sector, JINDAL STAINLESS LIMITED recorded the highest loss of 6.99%, followed by HINDALCO INDUSTRIES LIMITED with a decline of 3.58%, and HINDUSTAN COPPER LIMITED with a loss of 2.71%.

Bank Nifty: Up by 0.73%

Bank Nifty exhibited an optimistic start to the trading session and subsequently rose by 0.73 percent, culminating in a positive finish at 43,793.55. In a similar vein, the BSE Sensex made significant strides, escalating by 0.20 percent and concluding the session in green territory, at a high of 62,027.90. This noteworthy accomplishment exudes an air of perfect professionalism and sleek sophistication, reaffirming the bullish sentiment prevalent in the market.

The BANK NIFTY bulls remain steadfast in their long positions, leveraging the intraday dip to reinforce their strength. The index faces an immediate resistance at 44,000, while the downside is well-supported at 43,500, reflecting a poised and strategic market outlook.

On the FII/FPI front, as of 12/05/2023, the net value stood at Rs. 1,014.06 Cr. The buy value was recorded at Rs. 9,159.49 Cr. while the sale value stood at Rs. 8,145.43 Cr. On the other hand, DIIs recorded a net value of -Rs. 922.19 Cr. as of 12/05/2023, with the buy value at Rs. 5,457.40 Cr. and the sale value at Rs. 6,379.59 Cr.

Bank Nifty

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

The gainers included IndusInd Bank with a 1.73% increase, Axis Bank with a 1.68% increase, IDFC First Bank with a 1.47% increase, AU Bank with a 0.90% increase, and HDFC Bank with a 0.89% increase. On the other hand, the biggest losers in the sector included Federal Bank with a 1.41% decline, Bandhan Bank with a 0.73% decline, Punjab National Bank with a 0.21% decline, Kotak Bank with a 0.15% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

Eicher Motors Ltd. witnessed a sharp surge of 6.73% from its previous close of Rs 3,405.30, with its last traded price settling at 3,634.45. The stock has generated an impressive 3-year return of 140.37%, outperforming the Nifty 100’s return of 93.07%. Eicher Motors Ltd.’s accessories business has been gaining momentum over the last three quarters, boasting healthy margins and steady growth in numbers. As a result, its contribution to overall margins is anticipated to escalate over time, while simultaneously enriching the Royal Enfield ownership experience and bolstering consumer buying decisions. This marks an outstanding achievement for the company, demonstrating its impeccable market acumen and strategic prowess.

Mahindra & Mahindra Ltd. experienced a significant surge of 1.97% from its previous close of Rs 1,251.30, with its last traded price settling at 1,275.95. The stock generated an impressive 3-year return of 218.36%, outshining Nifty Auto’s return of 142.11%. In comparison to Nifty 100’s return of 93.07%, Mahindra & Mahindra Ltd.’s 3-year return of 218.36% exemplifies its remarkable performance in the market. Furthermore, over the last 18 years, only 1.83% trading sessions have witnessed intraday gains higher than 5%, further solidifying the company’s exceptional market prowess and unwavering consistency.

Buzz

Amid a strengthening US dollar in the global markets, the Indian rupee suffered a setback for the second consecutive trading session, sliding 7 paise to close at 82.16 against the US dollar on Friday. Nonetheless, the fall in the rupee was cushioned by a buoyant domestic equities market and persistent foreign capital inflows. As market participants awaited the release of the inflation data, investors remained watchful and exercised caution, perceiving the significance of the data’s potential impact on market sentiments.

The global benchmark for crude oil, Brent crude futures, registered a slight decline of 0.07% and settled at $74.93 per barrel.

Advance Decline Ratio

Today, the advance-decline ratio was 0.76, and the market breadth was negative. The volatility index India Vix decreased by 2.74 percent to settle at 12.85 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 969
Decliners – 1277
52Wk High –  90
52Wk Low – 14
High Band Hitters – 56
Low Band Hitters – 35
200d SMA – 17743
50d SMA – 17580
20d SMA – 17969

Top Gainers and Losers Stocks

The top gainers were Eicher Motors (+5.86%), M&M (+1.90%), IndusInd Bank (+1.73%), Axis Bank (+1.68%), and Hindustan Unilever (+1.03%).

The top losers were Hindalco (-3.58%), BPCL (-2.79%), Power Grid (-2.60%), NTPC (-2.45%), and Tata Steel (-1.57%).

Top Gainers and Losers Sector

The top gainers sectors were Auto (+0.77%), Financial Services (+0.54%), Consumer Durables (+0.33%), and FMCG (+0.18%).

The top losers sectors were Metal (-1.84%), Media (-1.12%), Oil & Gas (-0.89%), Pharma (-0.56%), and Realty (-0.35%).

The Nifty Midcap 50 was down by 0.49 percent, while the Nifty Small Cap 50 was down by 0.79 percent on the day.

The Nifty Midcap 50 index currently closed at 9,149.60, while the Nifty Small Cap 50 index currently closed at 4,457.05.

SECTORS – NOTABLE ACTION
AUTO +0.77%
FINANCIAL SERVICES +0.54%
CONSUMER DURABLES +0.33%
METAL -1.84%
MEDIA -1.12%
OIL & GAS -0.89%

Stocks Ban List

(SEBI) F&O ban list  (PNB open at -48.50 and close at +48.55), (BHEL open at +81.05 and close at -80.95), (CANBK open at -301.00 and close at -297.00), and (MANAPPURAM open at -115.40 and close at -109.95) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned PNB, BHEL, CANBK, and MANAPPURAM 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.

It seems that IBULHSGFIN, L&TFH, ZEEL, DELTACORP, and INDIACEM, and may be at risk of being added to the ban list.

BHEL, CANBK and MANAPPURAM has the possibilites of exit from ban list.

Daily Pivots

As per the above pivots data, 18220 to 18380 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty50 Resilient, Overcomes Selling Pressure
Volatility Persists, but Nifty Ends on a High Note at 18,315 Mark
Nifty Flat as Late Sell-Off Erases Early Gains

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