Index Rebound Hindered by Banking Underperformance

At the close, the Nifty 50 was at 19,611.05 up by 0.18%

The Indian equity indices have impressively sustained their winning streak, signifying the fourth successive session of favorable results. Today, the NSE Nifty 50 opened on a positive note, with a notable 0.18% increase and ultimately closed the session in the green.

Despite the presence of mixed global cues, the market initially exhibited a flat to positive sentiment. However, it later relinquished its gains, slipping into negative territory. Notably, a surge in last-hour buying activities bolstered the Nifty, enabling it to recover and conclude above the crucial 19,600 mark.

The global landscape witnessed significant fluctuations, primarily driven by a substantial surge in crude oil prices. This surge had ripple effects across the world, raising concerns about inflation and sparking apprehensions regarding a potential interest rate hike by the Federal Reserve (Fed) in the United States.

Consequently, there was a sharp increase in US bond yields as investors sought refuge in the safety of bonds. This shift in investment sentiment prompted a reversal of the buying trend among foreign investors in the Indian domestic market. Staying informed and adaptable in this dynamic financial environment is crucial for navigating these complex market conditions.

Bank Nifty: Down by 0.28%

In the current market scenario, there has been a noticeable rebound in the index. However, this rebound lacks conviction, primarily due to the ongoing underperformance of the banking sector. The Bank Nifty, in particular, has undergone a three-day consolidation phase, experiencing a pullback but ultimately closing in negative territory.

The day started with the Bank Nifty opening in the red, recording a decline of 0.28%. It concluded the session with a red closing at 44,409.10. In contrast, the BSE Sensex displayed a more modest gain of 0.15% and ended the day in positive territory, reaching a peak of 65,880.52.

Examining sectorial performance in recent trading sessions, the Fast-Moving Consumer Goods (FMCG) sector emerged as a standout performer, registering a significant gain of 1.00%. Notably, Tata Consumer Products Ltd. showcased remarkable strength within this sector, with a notable gain of 4.11%. Similarly, Radico Khaitan Ltd. contributed to the sector’s success with a gain of 2.84%.

On the flip side, the realty sector faced some challenges and emerged as the top loser, experiencing a decline of 0.96%. Within this sector, The Phoenix Mills Ltd. suffered a notable setback, with a loss of -2.84%, while Mahindra Lifespace Developers Ltd. faced a decline of -1.90%.

In terms of foreign and domestic institutional investor activity, FII/FPI purchases totaled 9,994.21, while sales amounted to 13,240.07, resulting in a net change of -3,245.86 (in Rs. Cr.). Conversely, DII purchases totaled 10,202.87, with sales totaling 10,450.33, resulting in a net change of -247.46 (in Rs. Cr.). Staying informed about these market dynamics is essential for making informed investment decisions.

Bank Nifty

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

The gainers included HDFC Bank with a 1.53% increase, AU Bank with a 0.57% increase, Kotak Bank with a 0.28% increase. On the other hand, the biggest losers in the sector included Punjab National Bank with a 2.23% decline, IDFC First Bank with a 2.02% decline, Axis Bank with a 1.48% decline, IndusInd Bank with a 1.30% decline, and ICICI Bank with a 0.86% decline. These results suggest that some banking stocks not performed better for the day.

Buzz

The Indian rupee faced continued pressure in the foreign exchange market, extending its depreciation for a third consecutive session. On Wednesday, the rupee depreciated by 10 paise, closing the day at an unprecedented low of 83.14 (pro) against the US dollar. Several factors contributed to this decline, including elevated US Treasury yields and a surge in global crude oil prices, which collectively exerted downward pressure on the local currency.

One significant factor behind the rupee’s depreciation was the relentless increase in US Treasury yields, which attracted investors to the strong American currency. This surge in demand for the US dollar pushed its value to the highest levels seen in six months, causing the rupee to lose ground.

Additionally, the rising global crude oil prices further compounded the challenges faced by the Indian rupee. The country is a net importer of oil, and any significant increase in oil prices can widen the trade deficit and strain the currency.

As the rupee grapples with these external pressures, it underscores the importance of monitoring global economic trends, oil prices, and US monetary policies to gauge its future performance in the forex market.

Buzzing

Tata Consumer Products Ltd. witnessed a notable surge in its share price, climbing by 4.11% from its previous closing value of Rs 846.30. The stock concluded the trading session with a closing price of Rs 881.05. This movement coincided with a daily Moving Average Convergence Divergence (MACD) crossover that occurred on September 4, 2023.

Historical data reveals that, on average, a price gain of 4.28% has occurred within 10 days following such MACD crossovers over the past decade. It’s worth noting that, over the course of the last 18 years, only approximately 1.69% of trading sessions have experienced intraday gains exceeding 5%.

Tata Steel Ltd. experienced a decline in its share price, decreasing by -1.71% from its previous closing value of Rs 131.70. The stock’s most recent trading price stood at Rs 129.45. In terms of financial performance, the company reported a slight sales de-growth of -0.14%. Notably, this marks the first instance of revenue contraction for Tata Steel Ltd. in the past three years, signifying a potential challenge for the company.

Looking at historical data, it’s worth mentioning that over the last 18 years, only approximately 2.61% of trading sessions have witnessed intraday declines exceeding 5%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.00, and the market breadth was positive. The volatility index India Vix decreased by 1.27 percent to settle at 10.68 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1189
Decliners – 1194
52Wk High –  161
52Wk Low – 4
High Band Hitters – 86
Low Band Hitters – 24
200d SMA – 18392
50d SMA – 19482
20d SMA – 19423

Top Gainers and Losers Stocks

The top gainers were Tata Consumer (+4.11%), Divi’s Laboratories (+1.77%), Bharti Airtel (+1.62%), HDFC Bank (+1.53%), and Britannia (+1.44%).

The top losers were Tata Steel (-1.71%), Hindalco (-1.65%), Axis Bank (-1.48%), NTPC (-1.32%), and IndusInd Bank (-1.30%).

Top Gainers and Losers Sector

The top gainers sectors were FMCG (+1.00%), Pharma (+0.90%), Oil & Gas (+0.77%), Consumer Durables (+0.59%), and Media (+0.20%).

The top losers sectors were Realty (-0.96%), Metal (-0.79%), IT (-0.16%), and Auto (-0.13%).

The Nifty Midcap 50 was up by 0.28 percent, while the Nifty Small Cap 50 was down by 0.09 percent on the day.

The Nifty Midcap 50 index currently closed at 11,469.65, while the Nifty Small Cap 50 index currently closed at 5,825.45.

SECTORS – NOTABLE ACTION
FMCG +1.00%
PHARMA +0.90%
OIL & GAS +0.77%
REALTY -0.96%
METAL -0.79%
IT -0.16%

Stocks Ban List

(SEBI) F&O ban list  (BALRAMCHIN open at -407.00 and close at +412.60), (DELTACORP open at -186.80 and close at -184.95), (IBULHSGFIN open at -188.00 and close at +190.05), (INDIACEM open at -256.35 and close at -253.90), (HINDCOPPER open at -168.55 and close at -163.75), and (BHEL open at -138.50 and close at -135.55) 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.

MANAPPURAM, SAIL, PNB, ZEEL, and NMDC stocks has the possibilities of enterance in the ban list.

Daily Pivots

As per the above pivots data, 19510 to 19680 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Gaps Up, Consolidates in Narrow Range
Indian Shares Surge Metals & IT Gain on China Stimulus and Fed Expectations
Domestic Markets Surge Positive GDP & Manufacturing PMI
Monthly Expiry Day Sees Volatile Markets, 0.5% Loss

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