From Ups to Downs: What Sparked the Dramatic Turn in Today’s Market?

At the close, the Nifty 50 was at 24,315.95 down by 0.03%

Today, the NSE Nifty 50 started on a high note but quickly experienced a downturn, closing in red with a slight 0.03% drop. The index ended the day at 24,315.95, reflecting a flat market amid high volatility. Investors were keenly watching the US inflation data set to release later, which could influence global market sentiments.

Despite beginning positively due to favorable global cues, Nifty erased all early gains within hours, dropping below 24,200 due to selling pressure. However, a recovery in the latter half saw the index bouncing back, defending crucial support levels like the 10-day EMA and an upward-sloping trendline. Nifty’s ability to hold above 24,300 for the sixth consecutive session indicated resilience, even though it ultimately closed 8.5 points lower.

In a volatile session, the Nifty 50 oscillated, hitting 24,400 initially but then wiping out gains before recovering partially. This movement formed a bearish candlestick pattern with a long lower shadow, signifying potential market uncertainty.

Investors booked profits in heavyweight stocks, anticipating subdued Q1 earnings. With FIIs inflow shifting and budget expectations in play, broader markets showed slight momentum. All eyes are now on US inflation data, which could steer the Federal Reserve’s interest rate decisions.

Will the Nifty 50 maintain its resilience, or are we on the brink of more volatility ahead?

Bank Nifty: Up by 0.16%

The Bank Nifty continued its trend of lower highs for the fifth straight session, characterized by a notable recovery from intraday lows. On the daily charts, it formed a Doji-like candlestick pattern, reflecting uncertainty among market participants regarding future trends.

Opening in positive territory, the Bank Nifty edged up by 0.16% and closed at 52,270.65, signaling resilience despite initial volatility. In contrast, the BSE Sensex experienced a marginal 0.03% decline, closing in the red at 79,897.34, underlining mixed sentiments across the broader market.

In the sectorial front, the oil and gas sector emerged as a clear winner, with a robust 1.10% gain. Leading the charge were Oil India Ltd., which surged by an impressive 8.20%, and Hindustan Petroleum Corporation Ltd., which climbed by a commendable 4.28%. These gains indicate a positive outlook for the energy sector.

However, the realty sector faced a different story, plunging by 1.49%. Brigade Enterprises Ltd. bore the brunt of the decline, shedding 3.59% of its value. Macrotech Developers Ltd. also suffered losses, closing 3.35% lower.

Foreign Institutional Investors (FII/FPI) witnessed a net outflow with sales exceeding purchases. Their sell value stood at Rs. 16,496.95 Cr., while buy value was Rs. 15,359.94 Cr., resulting in a net outflow of Rs. 1,137.01 Cr.

Conversely, Domestic Institutional Investors (DII) demonstrated a positive trend, recording higher purchases at Rs. 15,835.30 Cr. compared to sales at Rs. 14,158.83 Cr. This led to a net inflow of Rs. 1,676.47 Cr., highlighting their active participation and positive sentiment in the market.

Bank Nifty

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

The gainers included Federal Bank with a 2.43% increase, Bandhan Bank with a 2.31% increase, State Bank of India with a 0.84% increase, AU Bank with a 0.64% increase, and Axis Bank with a 0.59% increase.

On the other hand, the biggest losers in the sector included ICICI Bank with a 0.26% decline, and HDFC Bank with a 0.19% decline. These results suggest that most of the banking stocks not performed better for the day.

Gold and Silver

Today 22 Carat Gold Price Per Gram in India (INR)

Today 24 Carat Gold Price Per Gram in India (INR)

Today Silver Price 1 Gram/KG in India (INR)

Rupee Weakens Amid Market Volatility and Crude Oil Recovery

On Thursday, the Indian rupee settled 5 paise lower at 83.56 against the US dollar, influenced by a weak domestic market tone and a rebound in crude oil prices. Opening at 83.49 at the interbank foreign exchange market, the rupee lost ground, reaching an intraday low of 83.59 before closing at 83.56, marking a 5 paise drop from its previous close.

The rupee’s decline was attributed to profit-booking in the domestic market, which could lead to foreign fund outflows. Elevated crude oil prices further pressured the rupee, though a softer US dollar and positive trends in Asian currencies might offer some support at lower levels. On Wednesday, the rupee had stayed range-bound, settling 2 paise lower at 83.51 against the US dollar.

Market analysts suggest that the rupee may trade in the range of Rs. 83.35 to RS. 83.80, influenced by US inflation data and weekly unemployment claims. Additionally, the dollar index, which measures the greenback against a basket of six currencies, was 0.16% lower at 104.87. Meanwhile, Brent crude futures, the global oil benchmark, were up 0.24%, trading at $85.28 per barrel.

This market scenario highlights the complex interplay of domestic market dynamics, crude oil price fluctuations, and global currency trends, underscoring the need for vigilant market monitoring and strategic investment decisions.

Stocks Highlights

Oil and Natural Gas Corporation (ONGC) enjoyed a positive day on the stock market. Its share price climbed by 2.40%, closing at Rs 305.30. This uptick is noteworthy considering that in the past 19 years, only 1.32% of trading days saw such significant intraday gains. The company’s financial health also looks promising, with a Return on Equity (ROE) of 14.6% surpassing its five-year average. While interest expenses accounted for 1.59% of operating revenues, the company invested 1.14% in its employees.

In contrast, Tata Consumer Products experienced a downturn. Its share price dipped by 1.79% to Rs 1,130.25. Despite only 1.61% of trading days in the last 19 years showing intraday gains exceeding 5%, today was not one of them. The company allocated less than 1% of its operating revenue to interest expenses but a substantial 8.28% towards employee costs. Over the past three years, the stock delivered a return of 63.73%, outpacing the Nifty 100’s 52.57%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.50, and the market breadth was positive. The volatility index India Vix decreased by 3.03 to settle at 14.00 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1584
Decliners – 1053
52Wk High – 144
52Wk Low – 8
High Band Hitters – 130
Low Band Hitters – 42
200d SMA – 21623
50d SMA – 23145
20d SMA – 23938

Top Gainers and Losers Stocks

The top gainers were ONGC (+2.40%), Coal India (+2.20%), BPCL (+2.13%), ITC (+1.58%), and Tata Motors (+1.56%).

The top losers were Tata Consumer (-1.79%), Bajaj Finance (-1.36%), Divi’s Laboratories (-1.19%), M&M (-1.17%), and Sun Pharmaceuticals (-0.85%).

Top Gainers and Losers Sectors

The top gainers sector were Oil & Gas (+1.10%), Media (+1.03%), Consumer Durables (+0.60%), FMCG (+0.28%), and IT (+0.14%).

The top losers sector were Realty (-1.49%), Pharma (-0.60%), and Auto (-0.18%).

SECTORS – NOTABLE ACTION
OIL & GAS +1.10%
MEDIA +1.03%
CONSUMER DURABLES +0.60%
REALTY -1.49%
PHARMA -0.60%
AUTO -0.18%

Stocks Ban List

(SEBI) F&O ban list (RBLBANK open at -244.00 and close at +245.40), (INDIACEM open at +297.85 and close at +304.90), (BALRAMCHIN open at +436.30 and close at +445.05), (CHAMBLFERT open at -503.00 and close at -496.40), (GNFC open at -688.35 and close at -686.00), (INDUSTOWER open at -383.00 and close at +394.25), (PEL open at -910.00 and close at -934.40), (IEX open at -178.20 and close at +177.07), (ABFRL open at +326.00 and close at -323.40), and (BANDHANBNK open at -193.85 and close at +196.72) 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.

GMRINFRA, TATACHEM, IDFCFIRSTB, NMDC, SAIL, HINDCOPPER, IDEA, IRCTC, and BSOFT stocks has the possibilities of entrance in the ban list.

ABFRL, and BANDHANBNK stocks has the possibilities of exit from ban list.

Daily Pivots

As per the above pivots data, 24100 to 24550 is the Nifty 50 trading range.

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