Global Cues Drive Positive Start, Heavyweight Profit-Taking Turns Negative

At the close, the Nifty 50 was at 22,475.85 down by 0.76%

The NSE Nifty 50 commenced on a positive note but encountered a turbulent session, closing with a decline of 0.76% and settling below the crucial 22,500 mark. Despite an initial surge, heavy selling pressure across sectors, except for metal, led to the index ending lower at 22,475.85, down by 172.35 points.

The market’s early gains were short-lived as a sudden downturn erased the positive momentum, plunging the index into negative territory for the remainder of the session. Profit booking, coupled with cautious sentiment ahead of the release of US non-farm payroll data, intensified selling pressure.

Although the correction was widespread, large-cap stocks notably underperformed, partly attributed to a reduction in foreign institutional investors’ exposure to the domestic market. However, the absence of major negative surprises in Q4 earnings and a decline in oil prices offer some respite and may help alleviate downside risks.

Despite the day’s losses, the market managed to maintain support above the 20-day exponential moving average (DEMA), signifying a degree of resilience amidst heightened volatility. As uncertainties persist, investors remain vigilant and await further developments both domestically and globally to navigate market fluctuations effectively.

Bank Nifty: Down by 0.62%

Both the Bank Nifty and BSE Sensex faced downward pressure in today’s trading session, reversing early gains and closing in the red. The Bank Nifty began positively but ended with a decline of 0.62%, settling at 48,923.55. Likewise, the BSE Sensex experienced a sharper downturn, recording a loss of 0.98% and concluding at a low of 73,878.15.

In the sectorial front, the pharmaceutical sector demonstrated significant gains, marking a rise of 0.05%. Notably, Natco Pharma Ltd. saw an impressive surge of 2.55%, followed closely by Alkem Laboratories Ltd. with a gain of 2.32%.

Conversely, the realty sector experienced a downturn, witnessing a decline of 1.03%. Oberoi Realty Ltd. faced the most substantial setback, recording a loss of -3.54%, while Macrotech Developers Ltd. also experienced a notable decrease of -2.68%.

Foreign Institutional Investors (FII/FPI) exhibited a net selling activity in the Indian markets, with a sale value of Rs. 19,832.06 crore and a buy value of Rs. 17,440.08 crore, resulting in a net value of -Rs. 2,391.98 crore.

In contrast, Domestic Institutional Investors (DII) showed a net buying trend, with a sale value of Rs. 13,175.40 crore and a buy value of Rs. 13,865.92 crore, leading to a net value of Rs. 690.52 crore.

Bank Nifty

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

The gainers included State Bank of India with a 0.11% increase, ICICI Bank with a 0.04% increase, and AU Bank with a 0.03% increase.

On the other hand, the biggest losers in the sector included Kotak Bank with a 1.61% decline, Bandhan Bank with a 1.60% decline, Punjab National Bank with a 1.45% decline, IndusInd Bank with a 1.38% decline, and Bank of Baroda with a 1.23% decline. These results suggest that some of the banking stocks not performed better for the day.

Rupee Appreciates Against US Dollar Amidst Market Volatility

The Indian rupee exhibited resilience against the US dollar, appreciating by 3 paise to settle at 83.43 (pro) on Friday. This positive movement was attributed to a weakening American currency and declining crude oil prices, which eased pressure on the domestic currency.

However, gains were capped due to substantial selling in the domestic equity market and the outflow of foreign funds. Despite these challenges, the rupee opened at 83.40 and fluctuated within a range of 83.34 and 83.44 against the greenback during the trading session before finally settling at 83.43 (pro), marking a modest increase from its previous close.

This appreciation follows a slight dip on Thursday, where the rupee had settled 3 paise lower at 83.46 against the dollar. Factors contributing to the rupee’s strength include the US Federal Reserve’s decision to maintain the key interest rate unchanged, citing sluggish progress in inflation.

In global markets, the dollar index, measuring the dollar’s strength against a basket of six currencies, decreased by 0.10% to 105.07. Additionally, Brent crude futures, the global oil benchmark, saw a marginal decline of 0.04% to $83.64 per barrel, further supporting the rupee’s upward trend.

Amidst market volatility and external factors influencing currency movements, monitoring key indicators remains essential for investors to make informed decisions and navigate the ever-changing financial landscape.

Stocks Highlights

Coal India Ltd. witnessed a significant uptick in its share price, marking a notable increase of 4.76% from its previous close of Rs 453.90, with the stock last trading at Rs 475.50. Despite challenges, the company has managed its expenses efficiently, allocating less than 1% of its operating revenues to interest expenses and 34.28% towards employee costs, indicating sound financial management.

Furthermore, Coal India Ltd. has outperformed both the Nifty 100 and Nifty Metal indices, delivering impressive returns of 243.34% over a three-year period, compared to 56.07% and 79.72% returns, respectively, for the indices. This robust performance positions Coal India Ltd. as a promising investment opportunity, backed by strong fundamentals and consistent growth potential.

Conversely, Larsen & Toubro Ltd. experienced a decline in its share price, dropping by -2.76% to Rs 3,500.00 from its previous close of Rs 3,599.50. Despite this setback, the company has maintained a balanced approach to expenses, allocating 1.75% of its operating revenues to interest expenses and 20.3% towards employee costs.

Investors may take note of recent bullish signals, such as the 50-day moving average crossover, which historically resulted in an average price gain of 5.61% within 30 days. However, with a three-year return of 168.12% compared to the Nifty 100’s 56.07%, Larsen & Toubro Ltd. remains a significant player in the market despite short-term fluctuations, offering potential opportunities for strategic investment decisions.

Advance Decline Ratio

Today, the advance-decline ratio was 0.53, and the market breadth was negative. The volatility index India Vix increased by 8.72 percent to settle at 14.62 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 894
Decliners – 1694
52Wk High – 147
52Wk Low – 12
High Band Hitters – 106
Low Band Hitters – 58
200d SMA – 20781
50d SMA – 22292
20d SMA – 22454

Top Gainers and Losers Stocks

The top gainers were Coal India (+4.76%), Grasim (+1.54%), ONGC (+1.17%), Apollo Hospitals (+0.93%), and Hindalco (+0.72%).

The top losers were Larsen & Toubro (-2.76%), Maruti (-2.55%), Nestle India (-2.24%), Reliance (-2.12%), and Bharti Airtel (-2.00%).

Top Gainers and Losers Sector

The top gainers sector were Pharma (+0.05%).

The top losers sector were Realty (-1.03%), Oil & Gas (-0.98%), IT (-0.89%), Auto (-0.85%), and MEDIA (-0.64%).

SECTORS – NOTABLE ACTION
PHARMA +0.05%
REALTY -1.03%
OIL & GAS -0.98%
IT -0.89%

Stocks Ban List

(SEBI) F&O ban list (IDEA open at +13.30 and close at -13.20), (ABFRL open at +264.40 and close at -254.15), and (BIOCON open at +314.00 and close at -305.20) 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, ZEEL, BALRAMCHIN, SAIL, LICHSGFIN, INDIACEM, and CANBK stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 22200 to 22800 is the Nifty 50 trading range.

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