Global Market Bears Witness to Growth Concerns Amidst Russian Instability

At the close, the Nifty 50 was at 18,691.20 up by 0.14%

The domestic market sentiment was affected by weak cues from Asian and European markets, leading to a mixed performance of benchmarks in a range-bound trading session. However, selective buying in key sectoral stocks provided some relief. It is clear that global markets currently exert influence on domestic market trends, causing investors to exercise caution and hesitate to enter long positions during times of heightened uncertainty.

Today, the trading session for the NSE Nifty 50 began positively, with a 0.14 percent upward movement. Throughout the day, the index maintained its positive momentum and ended the session favorably. Notably, the Nifty settled near the 18700 mark, reinforcing its upward trajectory. This development showcases the market’s resilience and potential, signaling a promising outlook for investors and stakeholders alike.

Amidst the backdrop of political instability in Russia, the global market exhibited a prevailing negative bias, primarily driven by growing concerns surrounding economic growth. The notable rise in oil prices, attributed to worries about potential supply disruptions given Russia’s significant role as one of the largest oil producers worldwide, became a prominent feature in this scenario.

Bank Nifty: Up by 0.04%

Commencing on a positive note, the Bank Nifty exhibited a green opening, achieving a 0.04 percent rise before concluding the session in the green zone at 43,641.05. Conversely, the BSE Sensex experienced a marginal decline of 0.01 percent, eventually settling in the red territory at a lower point of 62,970.00. This dichotomy highlights the divergent performance of the two indices, emphasizing the need for careful analysis and strategic decision-making in the current market scenario.

Despite some downward pressure, the domestic market showcased resilience with limited downside, thanks to the notable support provided by the pharma and auto sectors. Furthermore, there was a visible rebound in the positions of mid and small-cap stocks, indicating a renewed sense of investor confidence in these segments after a recent sell-off. This positive development reflects a growing belief in the potential and attractiveness of mid and small-cap companies, reinstating their significance in the broader market landscape.

On the sectorial front, the Pharmaceutical sector exhibited significant gains, rising by 1.53%. Within this sector, GLAND PHARMA LIMITED emerged as a frontrunner, recording a notable gain of 4.17%. Not far behind, CIPLA LIMITED showcased a solid growth of 3.48%, while LAURUS LABS LIMITED followed suit with a gain of 3.24%. Remarkably, all sectors concluded the trading session in the green, with the exception of the Oil & Gas sector, which experienced a marginal decline of 0.07%. Notably, OIL INDIA LIMITED witnessed a decrease of -0.80%, while RELIANCE INDUSTRIES LIMITED incurred a loss of -0.78%.

Bank Nifty

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

The gainers included AU Bank with a 1.30% increase, Bandhan Bank with a 0.83% increase, IDFC First Bank with a 0.51% increase, State Bank of India with a 0.50% increase, and IndusInd Bank with a 0.42% increase. On the other hand, the biggest losers in the sector included Bank of Baroda with a 0.83% decline, Federal Bank with a 0.53% decline, HDFC Bank with a 0.47% decline, Kotak Bank with a 0.28% decline, and Punjab National Bank with a 0.20% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Amid mounting geopolitical concerns and the upward trajectory of crude oil prices, the Indian rupee witnessed a decline of 9 paise against the US dollar, settling at 82.04 (pro) during Monday’s trading session. This depreciation of the rupee underscores the influence of external factors on the currency’s performance and highlights the need for market participants to closely monitor geopolitical developments and fluctuations in crude oil prices, as they continue to shape the currency markets.

Following an initial decline at the opening, the Indian rupee showcased a remarkable recovery, surging to attain the day’s peak of 81.94 during the morning trading session. This upward movement was propelled by early gains observed in the equity markets, coupled with a weakened US dollar in the overseas markets. The rupee’s resilience and subsequent rebound signify the influence of domestic and international factors on its performance, highlighting the importance of monitoring market trends for a comprehensive assessment of the currency’s trajectory.

Buzzing

Registering an impressive surge, Cipla Ltd. witnessed a remarkable uptick of 3.48% from its preceding close of Rs 989.40. The stock’s most recent trading price settled at Rs 1,023.80. Notably, Cipla Ltd. delivered a substantial return of 55.84% over a three-year duration, outperforming the Nifty Pharma index, which yielded investors a return of 29.36% within the same timeframe. Moreover, when compared to the Nifty 100 index, the stock exhibited a three-year return of 55.84% in contrast to the index’s robust return of 77.33%. These figures exemplify the remarkable performance of Cipla Ltd. and showcase its potential as a lucrative investment opportunity.

Experiencing a downward movement, the share price of Power Grid Corporation of India Ltd. declined by -0.82% from its preceding close of Rs 250.10. The stock’s most recent trading price settled at Rs 248.05. Over a three-year span, the stock generated a substantial return of 86.09%, outperforming the S&P BSE Power index, which provided investors with a return of 144.27% during the same period. Furthermore, when compared to the Nifty 100 index, the stock exhibited a three-year return of 86.09% in contrast to the index’s return of 77.33%. In addition to its strong performance, the company observed a quarter-on-quarter revenue growth of 8.91%, representing the highest figure recorded in the past three years. These achievements highlight the company’s resilience and potential as a reliable investment option.

Advance Decline Ratio

Today, the advance-decline ratio was 1.19, and the market breadth was positive. The volatility index India Vix increased by 1.42 percent to settle at 11.40 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1288
Decliners – 1078
52Wk High –  63
52Wk Low – 16
High Band Hitters – 68
Low Band Hitters – 63
200d SMA – 17935
50d SMA – 18332
20d SMA – 18673

Top Gainers and Losers Stocks

The top gainers were Cipla (+3.48%), Adani Enterprises (+3.06%), Hero MotoCorp (+2.64%), Tata Consumer (+2.50%), and UPL (+1.82%).

The top losers were Power Grid (-0.82%), TCS (-0.82%), Reliance (-0.78%), NTPC (-0.75%), and Coal India (-0.71%).

Top Gainers and Losers Sector

The top gainers sectors were Pharma (+1.53%), Auto (+1.15%), Consumer Durables (+0.90%), Metal (+0.76%), and FMCG (+0.68%).

The top losers sectors were Oil & Gas (-0.07%).

The Nifty Midcap 50 was up by 0.78 percent, while the Nifty Small Cap 50 was up by 0.81 percent on the day.

The Nifty Midcap 50 index currently closed at 9,883.80, while the Nifty Small Cap 50 index currently closed at 4,796.35.

SECTORS – NOTABLE ACTION
PHARMA +1.53%
AUTO +1.15%
CONSUMER DURABLES +0.90%
OIL & GAS -0.07%

Stocks Ban List

(SEBI) F&O ban list  (HAL open at -3643.00 and close at +3701.05), (RBLBANK open at -166.50 and close at -165.95), (HINDCOPPER open at -114.00 and close at +115.95), (PNB open at -50.55 and close at -50.30), and (L&TFH open at -117.80 and close at +118.65) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned HAL, RBLBANK, HINDCOPPER, PNB, and L&TFH 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.
BALRAMCHIN, IBULHSGFIN, ZEEL, INDIACEM, GNFC, MANAPPURAM, SUNTV, IDFC, PEL, and DELTACORP are stocks that are potentially facing the possibility of being included in the ban list.

HINDCOPPER, PNB, and L&TFH has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 18640 to 18740 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Extends Decline on Negative Global Cues
Heightened Volatility as Domestic Market Reaches Historical Peaks
Nifty Opens Positively, Maintains Rangebound Upward Trend
Nifty 50 Indexes Stage Late-Day Reversal, Recover from Losses

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