At the close, the Nifty 50 was at 19,331.80 down by 0.85%
On Friday, the markets experienced profit-taking activities, resulting in a decline of nearly one percent. This downward movement can be attributed to the influence of weak global cues. Although there was an initial attempt by the Nifty to recover, the pressure exerted by major index constituents from various sectors eventually pushed the index lower as the day unfolded.
NSE Nifty 50 commenced the trading session on a bearish note, experiencing a significant decline of 0.85 percent throughout the day, ultimately concluding in the negative territory. The index remained persistently below the 19350 mark, reflecting a downward trend in the market.
The domestic market experienced profit-booking activities as the impact of weakening global markets reverberated. The decline in global equities, triggered by a surge in US bond yields, played a significant role in influencing market sentiment. This spike in bond yields was fueled by the market’s anticipation of a prolonged period of high-interest rates, following a notable upsurge in US private payroll data. The combined effect of these factors resulted in the market succumbing to profit-booking, as investors reacted to the heat waves emanating from the weak global market conditions.
Bank Nifty: Down by 0.92%
The Bank Nifty commenced the trading session with a decline as it opened on a lower note, experiencing a substantial decrease of 0.92 percent throughout the day. Ultimately, the index closed in the negative territory at a value of 44,925.00. Similarly, the BSE Sensex followed a similar trajectory, recording a decline of 0.77 percent and concluding the day in the red zone at a low value of 65,280.45.
In Friday’s trading session, the majority of sectors witnessed a decline, with FMCG, realty, and energy sectors emerging as the top losers. This decline effectively nullified the bullish momentum observed on Thursday, indicating the likelihood of a consolidation phase for the Nifty index in the near future. During such consolidation periods, managing positions becomes crucial as volatility swings are commonly observed. Traders and investors should remain vigilant and adopt appropriate strategies to navigate through this phase of market consolidation.
Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) recorded a net purchase value of Rs. 790.40 crore. Their buy value stood at Rs. 9,590.27 crore, while the sale value was Rs. 8,799.87 crore. On the other hand, Domestic Institutional Investors (DII) witnessed a net selling activity with a value of Rs. -2,964.23 crore. DIIs purchased stocks worth Rs. 6,244.19 crore but sold shares worth Rs. 9,208.42 crore on the same date.
The Nifty Banking sector had some gainers and some losers for the day.
Among the notable performers in the banking sector today, Punjab National Bank stood out with a significant increase of 2.54%, while Bank of Baroda also witnessed a notable rise of 1.53%. However, the sector also experienced some prominent losers, with AU Bank leading the way with a substantial decline of 3.78%. IndusInd Bank followed suit with a decline of 2.34%, while ICICI Bank experienced a decrease of 1.51%. Additionally, Kotak Bank recorded a decline of 1.19%, and HDFC Bank witnessed a decrease of 0.90%. These results indicate that certain banking stocks did not fare well during the day, highlighting a mixed performance within the sector.
The Indian rupee displayed weakness in its trading, as it slipped below the 82.72 mark, experiencing a decline of 0.28 rupees. Market participants are carefully assessing the potential negative repercussions of forthcoming interest rate hikes. Additionally, factors such as the strength of the US dollar and the upward trajectory of crude oil prices, supported by OPEC’s production cuts, are contributing to the overall weakness observed in the rupee. These elements are being closely monitored by market participants as they navigate the currency’s performance in the current market conditions.
Despite the prevailing pressure on the Indian rupee, the strength exhibited by the domestic capital market played a role in curbing the extent of its decline. However, profit booking activities witnessed in the broad market indices added additional downward pressure on the rupee. As the currency faces these challenges, it is anticipated to find support in the range of 82.90-83.00. This support level may provide some respite from further depreciation and potentially assist in stabilizing the currency’s value.
The share price of Tata Motors Ltd. witnessed a significant increase of 3.68% compared to its previous closing price of Rs 600.80. The stock’s last traded price settled at Rs 622.90. Over a period of three years, Tata Motors Ltd. delivered an impressive return of 450.94%, outperforming the Nifty 100 index, which recorded a return of 76.73% during the same period. Yesterday, a daily Moving Average Convergence Divergence (MACD) crossover was observed, indicating a potential bullish signal. Historical data shows that within 10 days of this signal, an average price gain of 5.12% has been witnessed over the past 10 years. Moreover, the company’s annual revenue growth of 24.54% has outpaced its three-year Compound Annual Growth Rate (CAGR) of 9.81%.
The share price of Adani Ports & Special Economic Zone Ltd. experienced a decline of -2.78% compared to its previous closing price of Rs 740.05. The stock’s last traded price settled at Rs 719.45. Over a three-year period, Adani Ports & Special Economic Zone Ltd. delivered a return of 113.92%, outperforming the Nifty 100 index, which recorded a return of 76.73% during the same period. Yesterday, a 5-day moving average crossover occurred, signaling a potential bearish trend. Historical data indicates that within seven days of this signal, an average price decline of -2.96% has been observed over the past five years. Furthermore, the company’s annual revenue growth of 23.86% has outperformed its three-year Compound Annual Growth Rate (CAGR) of 17.53%. Over the last 15 years, only 2.93% of trading sessions have seen intraday declines exceeding 5%.
Advance Decline Ratio
Today, the advance-decline ratio was 1.04, and the market breadth was positive. The volatility index India Vix decreased by 2.59 percent to settle at 11.53 and the FIIs were net buyers today.
DAILY MARKET ACTION
Advancers – 5410
Decliners – 5203
52Wk High – 128
52Wk Low – 15
High Band Hitters – 59
Low Band Hitters – 34
200d SMA – 17990
50d SMA – 18579
20d SMA – 18931
Top Gainers and Losers Stocks
The top gainers were Tata Motors (+3.68%), Titan (+1.21%), M&M (+0.79%), SBI Life (+0.39%), and Cipla (+0.17%).
The top losers were Adani Ports (-2.78%), Power Grid (-2.74%), Apollo Hospitals (-2.49%), IndusInd Bank (-2.34%), and NTPC (-2.13%).
Top Gainers and Losers Sector
The top gainers sectors were Media (+3.91%), and Auto (+0.29%).
The top losers sectors were FMCG (-1.53%), Realty (-1.18%), Financial Services (-0.90%), IT (-0.82%) and Pharma (-0.74%).
The Nifty Midcap 50 was down by 0.95 percent, while the Nifty Small Cap 50 was down by 0.59 percent on the day.
The Nifty Midcap 50 index currently closed at 10,169.95, while the Nifty Small Cap 50 index currently closed at 5,055.75.
SECTORS – NOTABLE ACTION
FINANCIAL SERVICES -0.90%
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.
PNB, MANAPPURAM, L&TFH, IBULHSGFIN, and ZEEL are stock that are potentially facing the possibility of being included in the ban list.
As per the above pivots data, 19240 to 19480 is the Nifty 50 trading range.
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This article is only for educational purposes and is not an investment advice.