Indian Equity Hits Highs in Volatile Session, Recovers Losses for Moderate Gains

At the close, the Nifty 50 was at 21,453.10 up by 0.16%

In the latest session, the NSE Nifty 50 commenced on a positive note, experienced fluctuations, and ultimately concluded with a modest surge of 0.16 percent, securing a closing position in the green zone. Surpassing the 21450 mark, the market showcased resilience, hitting fresh highs despite substantial fluctuations throughout the trading period.

This volatile scenario witnessed Indian equity benchmarks reaching unprecedented levels before rebounding from early losses. Initially trailing into negative territory, the market recovered during mid-session due to increased buying activity. Eventually, the indices closed with a marginal upswing of 34.45 points, displaying noteworthy resilience in a turbulent market environment.

Analysts anticipate an impending consolidation phase as the holiday season approaches, with Christmas and the New Year on the horizon. This consolidation, following a rapid upward trend in recent weeks, is viewed favorably for stabilizing the market’s overall health.

Investors are advised against hasty decisions and are encouraged to consider a strategic approach of ‘buying on dips.’ While smaller caps may appear overvalued due to retail investor enthusiasm, focusing on high-quality large caps during market downturns could prove beneficial. Additionally, PSU banks are currently perceived as attractively valued, offering investors another avenue of security amid market fluctuations.

As the market navigates volatility and potential consolidation, a cautious yet strategic investment approach remains pivotal for investors seeking stability and sustained growth.

Bank Nifty: Up by 0.01%

The Bank Nifty commenced the trading session on a downward trend, opening in the red zone. It managed to marginally rise by 0.01%, yet concluded the day’s trading at 47,870.90 in the negative territory. Conversely, the BSE Sensex experienced a different trajectory, opening with a 0.17% increase. It sustained this positive momentum, closing in the green at a notable high of 71,437.19.

In the sectorial front, the Fast Moving Consumer Goods (FMCG) sector witnessed a notable surge, marking a 1.41% rise in recent trends. Among the top gainers in this segment, Nestle India Ltd. stands out with a remarkable 4.70% increase, closely followed by Varun Beverages Ltd., which saw a commendable growth of 3.71%. However, in a contrasting scenario, the Information Technology (IT) sector faced a downturn, marking a 0.95% decrease. Notable entities such as L&T Technology Services Ltd. and Coforge Ltd. experienced declines of -2.80% and -2.77%, respectively, within this sector.

The Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) engaged in the Indian market reported a scenario where the total value of their purchases amounted to Rs. 11,748.82 crore, while their sales accounted for Rs. 12,350.34 crore. Consequently, their net value stood at a negative Rs. 601.52 crore. On the other hand, the Domestic Institutional Investors (DII) in the market displayed a different trend. They recorded a buy value of Rs. 8,728.85 crore and a sale value of Rs. 8,434.50 crore, resulting in a positive net value of Rs. 294.35 crore.

Bank Nifty

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

The gainers included State Bank of India with a 1.16% increase, Bank of Baroda with a 0.85% increase, IndusInd Bank with a 0.65% increase, Axis Bank with a 0.61% increase, and IDFC First Bank with a 0.56% increase. On the other hand, the biggest losers in the sector included AU Bank with a 2.10% decline, Bandhan Bank with a 1.85% decline, ICICI Bank with a 0.73% decline, HDFC Bank with a 0.31% decline, and Punjab National Bank with a 0.11% decline. These results suggest that some banking stocks performed better for the day.

Rupee Weakens Against Dollar Amidst Oil Price Surge and Market Trends

The Indian rupee initially showcased strength, opening at 82.97 against the US dollar but eventually closed lower at 83.10 on Monday, marking a decline of 7 paise. Factors contributing to this shift include a notable increase in oil prices and a lackluster performance in the domestic equity markets.

The local currency’s downward trend found support from a weakened US dollar against major global currencies. Despite this, it settled at its day’s lowest point against the greenback, down from the previous day’s closure at 83.03.

This decline in the rupee was influenced by minor weaknesses in capital markets and profit booking activities following a swift rally from 83.30 to 82.90. However, the rupee’s short-term outlook remains positive due to the broader weakening of the dollar index and the inflow of positive investments into Indian capital markets.

The surge in Brent crude prices by 3.59% to $79.30 per barrel added pressure to the rupee’s value. Concerns arose following reported attacks by the Iranian-backed Houthis on container ships and oil tankers. Notably, British major BP ceased Red Sea shipments, redirecting voyages around the Cape of Good Hope, thereby increasing both time and expense.

These fluctuations underscore the interplay between global geopolitical events, oil market dynamics, and their impact on currency movements, influencing the rupee’s performance against the dollar. Investors keenly observe these developments for potential implications on the Indian financial landscape.

Stocks Highlights

Coal India Ltd. Shows Positive Momentum Amidst Market Signals

Coal India Ltd. exhibited a significant uptick in its share price, rising by 6.14% to reach Rs 369.00 from its previous closing price of Rs 347.65. However, recent market signals indicate a potential sell-off, with the emergence of a Bear gaining steam 10-day moving crossover signal observed yesterday. Historically, within 7 days of this signal in the last 5 years, an average price decline of -2.98% has been noted.

Despite this, Coal India Ltd. has showcased impressive financial growth, surpassing its 3-year Compound Annual Growth Rate (CAGR) in revenue. With an annual revenue growth of 27.45%, the company has outperformed its 3-year CAGR of 12.19%. Additionally, intraday trading data over the last 13 years indicates that only 0.49% of trading sessions witnessed intraday declines higher than 5%, suggesting relative stability in the company’s stock.

Adani Ports & Special Economic Zone Ltd. Faces Market Retreat

Conversely, Adani Ports & Special Economic Zone Ltd. experienced a decrease in its share price by -1.76%, settling at Rs 1,075.00 from the previous closing price of Rs 1,094.30. Similar to Coal India Ltd., the company has demonstrated impressive revenue growth, surpassing its 3-year CAGR with an annual revenue growth of 23.86% against the 3-year CAGR of 17.53%.

However, intraday trading data spanning 16 years highlights that 2.95% of trading sessions witnessed intraday gains higher than 5%, indicating potential volatility in the stock. Furthermore, the company has allocated 11.33% of its operating revenues towards interest expenses and 5.65% towards employee costs for the fiscal year ending 31st March 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 0.90, and the market breadth was negative. The volatility index India Vix decreased by 0.23 percent to settle at 13.87 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1175
Decliners – 1299
52Wk High –  206
52Wk Low – 6
High Band Hitters – 107
Low Band Hitters – 42
200d SMA – 19002
50d SMA – 19923
20d SMA – 20614

Top Gainers and Losers Stocks

The top gainers were Coal India (+6.14%), Nestle India (+4.70%), NTPC (+2.11%), Tata Consumer (+1.91%), and Cipla (+1.91%).

The top losers were Adani Ports (-1.76%), Wipro (-1.58%), Adani Enterprises (-1.36%), UPL (-1.33%), and TCS (-1.33%).

Top Gainers and Losers Sector

The top gainers sector were FMCG (+1.41%), Consumer Durables (+0.82%), Oil & Gas (+0.80%), and Pharma (+0.36%).

The top losers sector were IT (-0.95%), Auto (-0.75%), Media (-0.74%), Metal (-0.67%), and Realty (-0.53%).

SECTORS – NOTABLE ACTION
FMCG +1.41%
CONSUMER DURABLES +0.82%
OIL & GAS +0.80%
IT -0.95%
AUTO -0.75%
MEDIA -0.74%

Stocks Ban List

(SEBI) F&O ban list (BALRAMCHIN open at -402.35 and close at -396.85), (NATIONALUM open at +116.00 and close at -112.65), (SAIL open at +115.45 and close at -111.05), (MANAPPURAM open at -171.60 and close at +172.75), (ZEEL open at +273.90 and close at -271.70), (INDIACEM open at -261.60 and close at +268.75), and (HINDCOPPER open at +199.00 and close at +207.75) 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.

PEL, ASHOKLEY, INDUSTOWER, IRCTC, GRANULES, RBLBANK, TATACHEM, IEX, ABCAPITAL, IBULHSGFIN, GNFC, CHAMBLFERT, CANBK, BHEL, CANFINHOME, and ESCORTS stocks has the possibilities of entrance in the ban list.

ZEEL, INDIACEM, and HINDCOPPER has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 21300 to 21550 is the Nifty 50 trading range.

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