Index Consolidation & High Volatility Ahead

NiftyTrader • July 25, 2023

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Index	Price	Change	% Chg
Nifty 50	19,680.60	+8.25	+0.04%
Nifty Bank	45,845.00	-78.05	-0.17%
BSE SENSEX	66,355.71	–29.07	–0.04%

At the close, the Nifty 50 was at 19,680.60 up by 0.04%

Experience the soaring performance of NSE Nifty 50 today! Witnessing a strong opening, the index displayed remarkable resilience throughout the day, overcoming fluctuations to ultimately secure a noteworthy 0.04 percent gain and conclude on a positive note. The closing bell rang with Nifty standing tall above the impressive mark of 19600.

As the crucial decision of the Federal Reserve’s policy loomed ahead, Indian indices remained relatively stagnant along the flat line. There was a notable rise in metal stocks, driven by China’s commitment to providing policy support to its realty sector. Additionally, the utilities sector experienced an upswing in anticipation of increased demand and an improvement in operating margin.

The recent downturn in the domestic market can be attributed to several factors, including a muted start to Q1 results, a reversal in FII activity, a rising dollar index, and an increase in crude oil prices.

The current signals suggest a likelihood of additional consolidation in the index, and the forthcoming monthly expiry of July month derivatives contracts is expected to maintain high volatility. Moreover, market participants will closely monitor the performance of the US market for guidance.

Bank Nifty: Down by 0.17%

Bank Nifty started the day on a positive note, gaining ground in the opening session. However, it experienced a minor setback during the trading day, ultimately closing with a 0.17 percent decline at 45,845.00. Meanwhile, the BSE Sensex also faced some volatility, with a slight downturn of 0.04 percent, and concluded the day at a low of 66,355.71.

Metal stocks leading the gains, as Jindal Steel & Power Limited and Hindustan Copper Limited show remarkable growth. However, the FMCG sector faces declines, with Procter & Gamble Hygiene And Health Care Limited and ITC Limited experiencing losses.

In today’s sectorial market update, the Metal sector showcased significant gains, surging by an impressive 2.94%. Among the top performers in this sector, Jindal Steel & Power Limited displayed remarkable growth with a gain of 5.50%, followed closely by Hindustan Copper Limited, which achieved a gain of 5.29%.

Conversely, the FMCG sector experienced a downturn, losing ground by 0.86%. Notably, Procter & Gamble Hygiene And Health Care Limited faced a decline of -2.53%, while ITC Limited also suffered losses, declining by -2.12%.

Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) recorded a net buy value of Rs. 1,088.76 Cr., with buy value amounting to Rs. 10,471.84 Cr. and sale value at Rs. 9,383.08 Cr. On the other hand, Domestic Institutional Investors (DII) registered a net sell value of Rs. -333.70 Cr., with a buy value of Rs. 7,793.68 Cr. and sale value of Rs. 8,127.38 Cr.

Bank Nifty

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

The gainers included HDFC Bank with a 0.96% increase, and ICICI Bank with a 0.19% increase. On the other hand, the biggest losers in the sector included Punjab National Bank with a 2.25% decline, Kotak Bank with a 1.35% decline, State Bank of India with a 1.25% decline, IndusInd Bank with a 1.23% decline and Bank of Baroda with a 1.03% decline. These results suggest that some banking stocks not performed better for the day.

Buzz

Rupee Slips 7 Paise to 81.88 Against Dollar Amidst Elevated Crude Oil Prices and Subdued Equities

In the foreign exchange market, the rupee initially gained ground but ultimately settled 7 paise lower at 81.88 against the US dollar on Tuesday. This decline in value was influenced by the impact of increased crude oil prices and a lackluster performance in the domestic equities, which dampened investor sentiments.

Forex traders highlighted that the US currency’s strengthening in the international market further added to the negative sentiment among investors.

The trading day commenced with the domestic unit opening at 81.74 against the dollar and reaching an early peak of 81.67 during the initial deals. However, the subsequent market conditions led to the rupee losing its early gains and finishing at 81.88 by the end of the day.

The global oil benchmark, Brent crude futures, experienced a slight decline of 0.18 per cent, settling at $82.59 per barrel.

Amidst a robust performance of Western and Asian currencies, the Indian rupee witnessed a gap-up opening. However, the Reserve Bank of India (RBI) might have intervened in the market, coupled with a surge in dollar demand from hedgers, resulting in the erasure of the initial gains.

Buzzing

Hindalco Industries Ltd. witnessed an impressive upward movement in its share price, registering a 4.00% increase from its previous close of Rs 432.95. The last traded price for Hindalco Industries Ltd. stock stands at Rs 450.25. Notably, the stock showcased a remarkable 3-year return of 177.18%, outperforming Nifty 100, which achieved a return of 73.51%.

An interesting market signal for Hindalco Industries Ltd. emerged recently, as a 14-day moving crossover appeared yesterday. Over the past 5 years, following this signal, the stock experienced an average price decline of -2.18% within 7 days.

On the other hand, Asian Paints Ltd. encountered a -4.20% decline in its share price from the previous close of Rs 3,543.70. The last traded price for Asian Paints Ltd. stock is recorded at Rs 3,395.00. Recently, a weekly stochastic crossover occurred during the week ending on Jul 21, 2023. Over the last decade, this signal has historically led to an average price gain of 6.24% within 7 weeks.

It’s important to note that derivatives of crude oil play a significant role in Asian Paints Ltd.’s operations as a major raw material. Fluctuations in crude oil prices can impact the company’s margins and ultimately affect its bottom line. Higher crude oil prices can create challenges for maintaining favorable margins.

Advance Decline Ratio

Today, the advance-decline ratio was 1.14, and the market breadth was positive. The volatility index India Vix decreased by 12.10 percent to settle at 10.24 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 5659
Decliners – 4980
52Wk High – 183
52Wk Low – 17
High Band Hitters – 87
Low Band Hitters – 43
200d SMA – 18131
50d SMA – 18921
20d SMA – 19472

Top Gainers and Losers Stocks

The top gainers were Hindalco (+4.00%), JSW Steel (+3.14%), Tata Steel (+3.12%), UltraTech Cement (+2.20%), and NTPC (+2.09%).

The top losers were Asain Paint (-4.20%), ITC (-2.12%), LT (-1.54%), Britannia (-1.47%), and Kotak Bank (-1.35%).

Top Gainers and Losers Sector

The top gainers sectors were Metal (+2.94%), Media (+1.51%), Auto (+0.95%), Consumer Durables (+0.79%), Oil & Gas (+0.69%).

The top losers sectors were FMCG (-0.86%), Realty (-0.40%), and IT (-0.28%).

The Nifty Midcap 50 was up by 0.40 percent, while the Nifty Small Cap 50 was down by 0.17 percent on the day.

The Nifty Midcap 50 index currently closed at 10,503.45, while the Nifty Small Cap 50 index currently closed at 5,187.35.

SECTORS – NOTABLE ACTION
METAL +2.94%
MEDIA +1.51%
AUTO +0.95%
FMCG -0.86%
REALTY -0.40%
IT -0.28%

Stocks Ban List

(SEBI) F&O ban list (RBLBANK open at -222.40 and close at +223.30), (DELTACORP open at +189.90 and close at +189.20), (CANBK open at -342.00 and close at -332.85), (IBULHSGFIN open at +122.15 and close at -120.30), and (PNB open at -62.45 and close at -60.70) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned RBLBANK, DELTACORP, CANBK, IBULHSGFIN, and PNB 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.

SUNTV, BHEL, ZEEL, HINDCOPPER, and INDUSTOWER are stock that are potentially facing the possibility of being included in the ban list.

IBULHSGFIN, and PNB has the possibilities of exit from ban list.