Indian Equities Broad Weakness Offset by Heavyweight Stock Buying

NiftyTrader • July 10, 2023

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Index	Price	Change	% Chg
Nifty 50	19,355.90	+24.10	+0.12%
Nifty Bank	44,860.85	-64.15	-0.14%
BSE SENSEX	65,344.17	+63.72	+0.10%

At the close, the Nifty 50 was at 19,355.90 up by 0.12%

Despite the prevailing broad-based weakness in Indian equities, the benchmark index exhibited commendable resilience and managed to maintain a marginal positive stance. This positive trajectory was primarily upheld by robust buying activity observed in heavyweight stocks, which provided vital support to the overall market sentiment.

NSE Nifty 50 commenced its trading session on a positive note, opening at a higher level and displaying an upward movement of 0.12 percent throughout the day. Eventually, the market concluded on a positive trajectory, reflecting a favorable closing position. Notably, the Nifty index surpassed the significant milestone of 19350, showcasing its strength and resilience.

Bank Nifty: Down by 0.14%

Bank Nifty, mirroring a positive sentiment, initiated the day’s proceedings in the green zone. However, as the day progressed, it experienced a decline of 0.14 percent, ultimately concluding in the red zone at a value of 44,860.85. Meanwhile, the BSE Sensex demonstrated a contrasting behavior, exhibiting an upward movement of 0.10 percent. This resulted in a favorable closing position as the index reached a notable high of 65,344.17, indicating its resilience and market strength.

The prevailing weakness in the Indian equities market was primarily driven by the performance of IT stocks, as this sector is poised to initiate the first quarter result season with anticipated subdued earnings. As market participants braced themselves for the upcoming financial reports, the subdued expectations surrounding the IT sector’s earnings contributed significantly to the overall weakness observed in the market.

The Indian equities market took cues from the US markets, which presented an unfavorable outlook. Despite expectations of a rapid cooling in future US Consumer Price Index (CPI) inflation data, concerns surrounding another rate hike persisted. These concerns weighed heavily on market sentiment, contributing to the prevailing unfavorable tone observed in the Indian equities market.

Bank Nifty

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

The gainers included IndusInd Bank with a 0.95% increase, Kotak Bank with a 0.89% increase, AU Bank with a 0.28% increase, and ICICI Bank with a 0.14% increase. On the other hand, the biggest losers in the sector included Bank of Baroda with a 2.46% decline, Axis Bank with a 1.24% decline, Bandhan Bank with a 0.76% decline, IDFC First Bank with a 0.50% decline, and Federal Bank with a 0.41% decline. These results suggest that some banking stocks not performed better for the day.

Buzz

In a volatile trading session, the act of profit booking in late trades resulted in the majority of the early gains being nullified, causing key indices to conclude the session with modest gains. As the market approached the upcoming US monetary policy meeting scheduled later this month, certain uncertainties and obstacles were noticeable. There are ample indications suggesting that the Federal Reserve is inclined towards implementing a rate hike this month as a means to effectively manage and mitigate inflationary pressures.

The markets experienced fluctuations within a narrow range and ultimately concluded with marginal gains in the green, influenced by a combination of mixed cues. In the early hours, there was a positive tone prevailing, primarily driven by the robust upward movement witnessed in Reliance Industries. However, the overall upside potential was curtailed as pressure mounted on other heavyweight stocks, leading to the trimming of gains as the trading session progressed.

Buzzing

Reliance Industries Ltd. witnessed a notable increase in its share price, rising by 3.86% from its previous closing value of Rs 2,633.60. The stock of Reliance Industries Ltd. reached a last traded price of Rs 2,735.25. Over the course of 3 years, the stock exhibited a return of 40.23%, while the Nifty 100 index recorded a return of 75.45% during the same period. Notably, a weekly stochastic crossover was observed during the week ending on July 07, 2023. In the last 10 years, this signal has been associated with an average price decline of -4.95% within 7 weeks. Furthermore, the company displayed an annual revenue growth rate of 24.67%, outperforming its 3-year Compound Annual Growth Rate (CAGR) of 13.29%.

HCL Technologies Ltd. experienced a decline in its share price, decreasing by -3.08% from its previous closing value of Rs 1,157.60. The stock of HCL Technologies Ltd. reached a last traded price of Rs 1,122.00. Over a 3-year period, the stock displayed a return of 98.81%, while the Nifty 100 index recorded a return of 75.45% during the same timeframe. Additionally, a weekly stochastic crossover was observed during the week ending on July 07, 2023. Historical data over the past 10 years indicates an average price decline of -4.11% within 7 weeks following this signal. Furthermore, the company demonstrated an annual revenue growth rate of 18.56%, outperforming its 3-year Compound Annual Growth Rate (CAGR) of 12.86%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.04, and the market breadth was positive. The volatility index India Vix decreased by 0.60 percent to settle at 11.46 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 5436
Decliners – 5238
52Wk High – 129
52Wk Low – 27
High Band Hitters – 54
Low Band Hitters – 74
200d SMA – 18000
50d SMA – 18608
20d SMA – 18971

Top Gainers and Losers Stocks

The top gainers were Reliance (+3.86%), Tata Steel (+3.27%), JSW Steel (+2.91%), Bharti Airtel (+1.64%), and HDFC Life (+1.59%).

The top losers were HCL Technologies (-3.08%), Titan (-2.93%), Power Grid (-2.02%), TCS (-1.57%), and Hindustan Unilever (-1.52%).

Top Gainers and Losers Sector

The top gainers sectors were Metal (+1.69%), and Oil & Gas (+0.59%).

The top losers sectors were IT (-1.24%), Media (-0.95%), Realty (-0.85%), Consumer Durables (-0.80%) and FMCG (-0.77%).

The Nifty Midcap 50 was down by 0.28 percent, while the Nifty Small Cap 50 was down by 0.71 percent on the day.

The Nifty Midcap 50 index currently closed at 10,141.85, while the Nifty Small Cap 50 index currently closed at 5,019.90.

SECTORS – NOTABLE ACTION
METAL +1.69%
OIL & GAS +0.59%
IT -1.24%
MEDIA -0.95%
REALTY -0.85%

Stocks Ban List

(SEBI) F&O ban list (DELTACORP open at -247.00 and close at -241.95), (GRANULES open at +314.70 and close at -310.05), (INDIACEM open at +212.10 and close at -206.05), and (BHEL open at -91.75 and close at -91.20) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned DELTACORP, GRANULES, INDIACEM and BHEL 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.

IBULHSGFIN, PNB, L&TFH, MANAPPURAM, ZEEL, HINDCOPPER, BALRAMCHIN, and RBLBANK are stock that are potentially facing the possibility of being included in the ban list.