Indian Equity Benchmarks Retreat in Saturday’s Volatile Trading

At the close, the Nifty 50 was at 21,571.80 down by 0.23%

The NSE Nifty 50 witnessed a positive kickstart to the day but faced selling pressure, ultimately closing down by 0.23%, settling below the 21600 mark. Saturday’s trading session exhibited volatility, with notable declines in FMCG, IT, and realty sectors. The bearish engulfing pattern on the weekly charts suggests a potentially choppy short-term trend.

In contrast to domestic trends, US markets soared over the weekend, propelled by growing optimism surrounding Artificial Intelligence (AI). However, the Indian equity scene portrayed a subdued trajectory, influenced by extended holidays, low trading volumes, and weekly option expirations. Profit booking in IT and FMCG sectors was evident, while selective buying emerged in private banks post recent corrections and stable Q3 earnings.

Looking forward, market dynamics hinge on the interest rate decisions of the Bank of Japan (BoJ) and the European Central Bank (ECB), alongside US GDP data. The full Saturday session, followed by Monday closures due to a public holiday in Maharashtra and a half-working day at the central government level for the Ram Temple inauguration in Ayodhya, adds an extra layer of complexity for investors. Staying informed on these developments is crucial for a nuanced understanding of the current market landscape.

Bank Nifty: Up by 0.78%

In a day characterized by diverse market movements, the Bank Nifty exhibited a positive start, marking a gain of 0.78% and closing in the green at 46,058.20. Conversely, the BSE Sensex encountered a minor setback, facing a 0.36% decline and concluding the day in the red at 71,423.65.

Within sectors, the Financial Services sector experienced a notable upswing, recording a gain of 0.57%, with Kotak Mahindra Bank Ltd. leading with a commendable increase of 2.59%. Meanwhile, Indian Energy Exchange Ltd. contributed to the positive momentum, recording a gain of 1.82%.

Contrarily, the FMCG sector witnessed a downturn, marking a decline of 1.17%. Hindustan Unilever Ltd. faced a noteworthy loss of -3.72%, and Godrej Consumer Products Ltd. contended with a decline of -2.72%.

Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) strategically positioned themselves with a buy value of Rs. 305.58 Cr. and a substantial sale value of Rs. 851.16 Cr., resulting in a net negative value of Rs. -545.58 Cr., reflecting a cautious approach.

On the domestic front, Domestic Institutional Investors (DIIs) engaged in a nuanced pattern, with a buy value of Rs. 3,467.93 Cr. and a sale value of Rs. 4,187.24 Cr. The net value for DIIs stands at -Rs. 719.31 Cr., indicating a marginally negative trend in the current market dynamics.

Bank Nifty

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

The gainers included Punjab National Bank with a 2.84% increase, AU Bank with a 2.66% increase, Kotak Bank with a 2.59% increase, IDFC First Bank with a 2.45% increase, and Bandhan Bank with a 1.48% increase. On the other hand, the biggest losers in the sector included IndusInd Bank with a 1.61% decline, Federal Bank with a 0.55% decline. These results suggest that some of the banking stocks performed better for the day.

Stocks Highlights

Coal India Ltd. has experienced a positive trajectory, witnessing a 4.11% increase in its share price, reaching Rs. 399.00 from the previous close of Rs. 383.25. Intraday analysis reveals that only 1.07% of trading sessions in the last 13 years saw intraday gains surpassing 5%, emphasizing the significance of this recent uptick. Furthermore, the company’s annual revenue growth of 27.45% outperforms its 3-year Compound Annual Growth Rate (CAGR) of 12.19%. Notably, a buy signal has emerged with a 20-day moving crossover, historically resulting in an average price gain of 3.79% within 7 days.

On the contrary, Tata Consultancy Services Ltd. (TCS) faces a decline, with its share price decreasing by -2.12% from the previous close of Rs. 3,943.05 to Rs. 3,859.30. In the last 19 years, only 1.01% of trading sessions saw intraday gains higher than 5%. While TCS exhibits a robust annual revenue growth of 16.93%, surpassing its 3-year CAGR of 12.19%, attention is drawn to the company’s efficient expense management. With less than 1% spent on interest expenses and 56.56% allocated towards employee costs as of March 31, 2023, TCS demonstrates prudent financial management in a challenging market scenario. Investors should carefully consider these factors when making informed decisions in the current stock market landscape.

Advance Decline Ratio

Today, the advance-decline ratio was 1.03, and the market breadth was positive. The volatility index India Vix decreased by 1.17 percent to settle at 13.80 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1252
Decliners – 1218
52Wk High –  258
52Wk Low – 16
High Band Hitters – 162
Low Band Hitters – 27
200d SMA – 19505
50d SMA – 20933
20d SMA – 21674

Top Gainers and Losers Stocks

The top gainers were Coal India (+4.11%), Adani Ports (+3.34%), Kotak Bank (+2.59%), Adani Enterprises (+2.48%), and ICICI Bank (+1.23%).

The top losers were Hindustan Unilever (-3.72%), TCS (-2.12%), M&M (-1.91%), IndusInd Bank (-1.61%), and HCL Technologies (-1.53%).

Top Gainers and Losers Sector

The top gainers sector were Financial Services (+0.57%), Metal (+0.26%), Oil & Gas (+0.14%), and Media (+0.12%).

The top losers sector were FMCG (-1.17%), IT (-1.00%), Pharma (-0.89%), Realty (-0.75%), and Consumer Durables (-0.67%).

SECTORS – NOTABLE ACTION
FINANCIAL SERVICES +0.57%
METAL +0.26%
OIL & GAS +0.14%
FMCG -1.17%
IT -1.00%
PHARMA -0.86%

Stocks Ban List

(SEBI) F&O ban list (OFSS open at +6949.95 and close at -6700.50), (RBLBANK open at -264.00 and close at +268.70), (NATIONALUM open at +134.60 and close at +135.35), (BALRAMCHIN open at -384.50 and close at +382.95), (SAIL open at +115.00 and close at +114.90), (ZEEL open at -237.00 and close at -231.40), (POLYCAB open at -4450.00and close at -4335.35), (IEX open at +141.85 and close at +142.25), (ABFRL open at +224.70 and close at +225.75), (DELTACORP open at -145.15 and close at -145.10), and (HINDCOPPER open at +266.60 and close at +270.25) 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.

GNFC, GMRINFRA, IDEA, BHEL, INDUSTOWER, PNB, IRCTC, INDIACEM, NMDC, PEL, SUNTV, UPL, and CHAMBLFERT stocks has the possibilities of entrance in the ban list.

IEX, ABFRL, DELTACORP, and HINDCOPPER stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 21450 to 21750 is the Nifty 50 trading range.

Read previous -Daily Insights- here

NSE Nifty 50 Extends Fall, Hits Below 21,500
Banking Pack Takes a Hit as HDFC Bank’s Q3 Results Cause Market Plunge

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