Indian Benchmark Indices Show Resilience with Slight Gains in Volatile Trading

At the close, the Nifty 50 was at 20,926.35 up by 0.10%

The NSE Nifty 50 index encountered a tumultuous trading day, initiating on a subdued note but ultimately securing a 0.10% upswing to conclude positively above the 20900 threshold. This rollercoaster session witnessed initial setbacks, plunging to an intraday low of 20,769.50, primarily attributed to sell-offs in Information Technology, metal, and oil & gas stocks. Yet, a robust surge in sectors like power, realty, pharma, and auto towards the session’s end facilitated a remarkable turnaround, resulting in a marginal gain and a relatively stable closure despite the persistent market volatility.

Prospects indicate a probable consolidation phase for the index, maintaining an optimistic stance. However, prudent stock selection and vigilant overnight risk management remain paramount for market participants, who are attentively gauging cues from the performance of US markets to predict the market’s next directional shift.

Economically, India’s domestic industrial production and manufacturing PMI surpassed expectations, hinting at sustained growth in H2FY24. Conversely, concerns linger as retail inflation remains elevated at 5.5%, significantly above the RBI’s targeted 4%. Attention is now directed toward the upcoming FOMC meeting, while the recent surge in global markets anticipates a swift reduction in the US Fed rate by CY2024, intensifying market dynamics. This anticipation underscores the complexities influencing global market sentiments, necessitating astute monitoring and preparedness for potential shifts in economic policies.

Bank Nifty: Down by 0.01%

The trading day initiated with Bank Nifty exhibiting promising momentum, starting positively but ultimately closing with a marginal downturn of 0.01%, settling at 47,092.25, marking a shift into negative territory. Conversely, the BSE Sensex followed a distinct path, opening with a modest 0.05% rise and concluding notably higher at 69,584.60.

Among sectors, the realty segment emerged as a significant gainer, experiencing a robust surge of 1.61%. Notable players within this sphere, such as Prestige Estates Projects Ltd., soared impressively by 5.61%, while The Phoenix Mills Ltd. showcased a commendable gain of 2.18%.

However, the Information Technology (IT) sector faced a contrasting scenario, emerging as the top loser with a decline of 1.28%. Key entities contributing to this downturn included Tata Consultancy Services Ltd., witnessing a decrease of -2.05%, and Infosys Ltd., marking a loss of -1.77%.

Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) recorded a substantial buy value of Rs. 19,273.27 crore alongside a sale value of Rs. 14,562.41 crore, reflecting a net investment of Rs. 4,710.86 crore. Conversely, Domestic Institutional Investors (DII) registered a buy value of Rs. 8,697.17 crore against a sale value of Rs. 9,655.66 crore, indicating a net divestment value of Rs. -958.49 crore.

Bank Nifty

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

The gainers included Bank of Baroda with a 2.27% increase, Bandhan Bank with a 1.75% increase, State Bank of India with a 1.08% increase, IDFC First Bank with a 0.75% increase, and IndusInd Bank with a 0.49% increase. On the other hand, the biggest losers in the sector included Axis Bank with a 1.25% decline, AU Bank with a 0.99% decline, ICICI Bank with a 0.24% decline, Federal Bank with a 0.10% decline, and HDFC Bank with a 0.05% decline. These results suggest that some banking stocks performed better for the day.

Rupee Hits All-Time Low at 83.41 Against US Dollar Amidst Volatile Markets

On Wednesday, the Indian rupee faced intensified pressure, depreciating by 4 paise to achieve an unprecedented closing low of 83.41 against the US dollar. This record low was influenced by a strengthened US currency in the global market.

Despite a notable decline in crude oil prices, plummeting from $76 per barrel to under $73, the rupee encountered slight relief. However, a subdued performance in equity markets contributed to a negative sentiment surrounding the local unit, overshadowing the positive impact of the oil price drop.

Throughout the day at the interbank foreign exchange market, the rupee oscillated within a tight range, opening at 83.39 against the dollar and maintaining levels between 83.38 and 83.41 before settling at the historic low of 83.41, marking a 4-paise dip from the previous day’s closure at 83.37.

This recent plunge comes after the rupee had earlier touched its lowest closing mark of 83.40 on November 24th of this year, emphasizing the sustained challenges faced by the currency.

Forex traders are now keenly anticipating the US Federal Reserve’s forthcoming monetary policy decision, scheduled for announcement, as it holds implications for the global market dynamics. Simultaneously, Brent crude futures, the global oil benchmark, experienced a marginal 0.38% decline, reaching $72.96 per barrel, further impacting the currency market landscape.

Stocks Highlights

NTPC Ltd. Shows Robust Growth Amidst Financial Resilience

NTPC Ltd. demonstrated a notable surge in its share price, marking a 3.78% increase from its previous closing value of Rs 283.40 to a last traded price of Rs 294.10. The company’s performance echoes a remarkable annual revenue growth of 31.84%, outpacing its 3-year CAGR of 16.39%, reinforcing its financial strength.

An intriguing fact check reveals that over the past 19 years, a mere 1.0% of trading sessions experienced intraday declines exceeding 5%, underlining the company’s historical stability in trading patterns.

Delving into financial allocations, NTPC has strategically directed 6.33% of its operating revenues towards interest expenses and 3.7% towards employee costs for the fiscal year ending on March 31, 2023, showcasing prudent financial management.

Tata Consultancy Services Ltd. Faces Share Price Decline Amidst Operational Shifts

Conversely, Tata Consultancy Services Ltd. witnessed a -2.05% dip in its share price, sliding from its previous close of Rs 3,672.10 to a last traded price of Rs 3,597.00. Despite sustaining an annual revenue growth of 16.93%, surpassing its 3-year CAGR of 12.19%, the company encountered a minor quarter-on-quarter revenue decline of 0.13%, the lowest in the past 3 years.

Similar to NTPC, a historical fact check unveils that only 1.0% of trading sessions in the last 19 years recorded intraday gains surpassing 5%, highlighting a steadier trading pattern.

Examining financial allocations, Tata Consultancy Services Ltd. remarkably spent less than 1% of its operating revenues on interest expenses, prioritizing financial efficiency. However, the company allocated a substantial 56.56% of its operating revenues towards employee costs for the fiscal year ending March 31, 2023, signifying an emphasis on human resource investments amidst operational shifts.

Advance Decline Ratio

Today, the advance-decline ratio was 1.21, and the market breadth was positive. The volatility index India Vix decreased by 5.09 percent to settle at 12.07 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1344
Decliners – 1113
52Wk High –  151
52Wk Low – 7
High Band Hitters – 120
Low Band Hitters – 41
200d SMA – 18928
50d SMA – 19776
20d SMA – 20281

Top Gainers and Losers Stocks

The top gainers were NTPC (+3.78%), Adani Ports (+3.08%), Hero MotoCorp (+2.88%), Power Grid (+2.31%), and Eicher Motors (+2.13%).

The top losers were TCS (-2.05%), Infosys (-1.77%), HDFC Life (-1.32%), Axis Bank (-1.25%), and UltraTech Cement (-1.16%).

Top Gainers and Losers Sector

The top gainers sector were Realty (+1.61%), Pharma (+1.12%), Auto (+1.08%), Metal (+0.88%), and FMCG (+0.70%).

The top losers sector were IT (-1.28%), Oil & Gas (-0.13%), and Financial Services (-0.01%).

SECTORS – NOTABLE ACTION
REALTY +1.61%
PHARMA +1.12%
AUTO +1.08%
IT -1.28%
OIL & GAS -0.13%
FINANCIAL SERVICES -0.01%

Stocks Ban List

(SEBI) F&O ban list (BALRAMCHIN open at -389.80 and close at -378.95), (HINDCOPPER open at -179.25 and close at +182.25), (ZEEL open at +292.00 and close at -284.55), (INDIACEM open at -267.60 and close at +272.50), (IBULHSGFIN open at +201.70 and close at +207.00), (DELTACORP open at +139.40 and close at -137.20), (NATIONALUM open at -97.20 and close at +98.95), and (SAIL open at -100.70 and close at +103.25) 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.

ASHOKLEY, MANAPPURAM, CHAMBLFERT, RBLBANK, GMRINFRA, CANFINHOME, ABCAPITAL, PEL, GNFC, TATACHEM and GRANULES stocks has the possibilities of entrance in the ban list.

SAIL has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 20750 to 21100 is the Nifty 50 trading range.

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