At the close, the Nifty 50 was at 17,624.05 up by 0.00%
NSE Nifty 50 index begin on a positive note, but subsequently experience a downward trend before ultimately ending the day with a modest 0.00 percent gain and closing in the green. The Nifty index concluded the day in close proximity to the 17630 level.
Despite slight fluctuations, the Nifty has continued to witness a period of time correction, with the benchmark index remaining range-bound before ultimately closing flat. After experiencing a correction from its recent high of 17863, the Nifty has spent the last three days consolidating around its 200-day moving average.
Thus far, the bulls have managed to maintain the Nifty above this crucial long-term investment line of polarity. However, a fall below the 200 DMA (currently located at 17605) could potentially trigger a panic button, leading to a further drop towards 17400. On the other hand, a resistance level has been established at 17700, with a potential increase towards 18000 if the index manages to surpass it.
The markets remained in a state of consolidation and concluded the day with minimal changes. Despite starting out flat, the Nifty gradually drifted downwards; however, the latter half of the day saw select heavyweights stage a recovery, mitigating all losses and ensuring the index held steady at the 17,600+ level for yet another session. Across sectors, traders remained busy amidst a mixed trend, with FMCG and IT seeing an uptick while realty, metal, and auto sectors experienced some pressure.
Moving forward, traders will closely monitor the early trades on Monday, particularly in response to the earnings reports of Reliance and ICICI Bank, which may potentially provide the necessary trigger for market activity.
Bank Nifty: Down by 0.36%
Bank Nifty commenced positively, but experienced a 0.36 percent decline and ultimately ended the day in the red, concluding at 42,118.00. In a similar manner, the BSE Sensex opened in the green, saw a modest 0.04 percent increase, and concluded the day at a high of 59,655.06 while still in positive territory.
Out of the 13 major sectoral indexes, 8 saw a decline in their respective values. HCLTech, India’s third-largest IT firm in terms of revenue, saw an increase of up to 3.52% following the release of their March quarter’s consolidated net profit report on Thursday. However, caution prevailed in the IT sector after the company predicted lower-than-anticipated revenue growth for FY2024 due to spending cuts and project ramp-downs.
IT stocks have been leading the recent downturn in the markets, with a current 0.2% increase. This follows weak earnings reports from Tata Consultancy Services Ltd and Infosys Ltd. Despite this, the benchmark Nifty 50 has suffered a loss of over 1% so far this week, with the IT sector bearing the brunt with a loss of 6%.
BANK NIFTY index saw a volatile session before eventually closing near the crucial support zone of 42,000. Currently, the index has been consolidating within a wide range of 42,000-42,500, and a break on either side may lead to significant trending moves. If the index is unable to maintain its support at the 42,000 level on a closing basis, it may experience further downside towards the 41,500 level.
The Nifty Banking sector had some gainers and some losers for the day.
The gainers included Bandhan Bank with a 0.99% increase, Kotak Bank with a 0.37% increase, IDFC First Bank with a 0.18% increase, and HDFC Bank with a 0.01% increase. On the other hand, the biggest losers in the sector included AU Bank with a 2.12% decline, IndusInd Bank with a 1.07% decline, Punjab National Bank with a 1.03% decline, Federal Bank with a 0.98% decline, and Axis Bank with a 0.93% decline. These results suggest that some banking stocks not performed better for the day.
Bandhan Bank Ltd. Over the past five years, a mere 3.19% of trading sessions have witnessed intraday gains exceeding 5%. Moreover, the net interest margin for the company has exhibited a continuous decline over the last three years, with the margin resting at 6.27% during the previous year. Despite this, shares of Bandhan Bank Ltd. managed to rise by 1.22% from the prior close of Rs 217.85, with the last traded price resting at 220.50 for the stock.
Kotak Mahindra Bank Ltd. Over the past 18 years, a mere 2.51% of trading sessions have witnessed intraday declines exceeding 5%. Additionally, Kotak Mahindra Bank Ltd. reported a YoY increase of 20.73% in advances, which surpasses its 5-year CAGR of 8.13%. Following this news, shares of Kotak Mahindra Bank Ltd. experienced a modest 0.51% rise from the previous close of Rs 1,884.00, with the last traded price for the stock being 1,893.65.
Au Small Finance Bank Ltd. Over the past 3 years, the company has been able to steadily expand its net interest margin, with a margin of 4.68% in the previous year. Despite this, shares of Au Small Finance Bank Ltd. experienced a decline of -1.98% from the previous close of Rs 679.40, with the last traded price for the stock being 665.95.
IndusInd Bank Ltd. The company has achieved a quarterly revenue growth of 7.6%, the highest in the last three years. Its stock outperformed the Nifty Bank by generating a return of 180.95% over a three-year period, compared to the 105.4% return for the index. IndusInd Bank Ltd. share price declined by -0.87% from its previous close of Rs 1,126.20, with the last traded price at Rs 1,116.35.
Advance Decline Ratio
Today, the advance-decline ratio was 0.69, and the market breadth was negative. The volatility index India Vix decreased by 2.59 percent to settle at 11.63 and the FIIs were net sellers today.
DAILY MARKET ACTION
Advancers – 920
Decliners – 1343
52Wk High – 45
52Wk Low – 12
High Band Hitters – 54
Low Band Hitters – 38
200d SMA – 17596
50d SMA – 17504
20d SMA – 17422
Top Gainers and Losers Stocks
The top gainers were ITC (+1.92%), TCS (+1.75%), Britannia (+1.73%), Wipro (+1.42%), and Cipla (+1.32%).
The top losers were HDFC Life (-3.16%), Tech Mahindra (-2.25%), Adani Enterprises (-2.22%), SBI Life (-1.80%), and Tata Steel (-1.76%).
ITC Ltd. stock outperformed the Nifty 100 with a 3-year return of 122.88%, compared to the benchmark index’s return of 84.86%. The share price of ITC Ltd. increased by 1.99% from its previous close of Rs 400.30 and its last traded price was Rs 408.25.
Tata Consultancy Services Ltd. Over the past 18 years, there have only been 1.04% of trading sessions that saw intraday gains exceeding 5%. Tata Consultancy Services Ltd. reported a YoY increase of 11.27% in its revenue. Tata Consultancy Services Ltd. share price rose by 1.81% from its previous close of Rs 3,104.80, and the last traded price of the stock was Rs 3,160.85.
Top Gainers and Losers Sector
The top gainers sectors were Media (+1.33%), FMCG (+0.89%), IT (+0.69%), Pharma (+0.48%), and Oil & Gas (+0.13%).
The top losers sectors were Realty (-2.13%), Metal (-1.37%), Auto (-1.03%), Consumer Durables (-0.31%), and Financial Services (-0.19%).
The Nifty Midcap 50 was down by 0.41 percent, while the Nifty Small Cap 50 was down by 0.17 percent on the day.
The Nifty Midcap 50 index currently closed at 8,731.30, while the Nifty Small Cap 50 index currently closed at 4,271.60.
SECTORS – NOTABLE ACTION
Stocks Ban List
The Securities and Exchange Board of India (SEBI) has not included any stock in the ban list for futures and options trading.
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, ZEEL and DELTACORP have the possibility of being added to the ban list.
As per the above pivots data, 17560 to 17680 is the Nifty 50 trading range.
Read previous -Daily Insights- here
Nifty Ends Lackluster Trade Amid Caution over Q4 Earnings and Volatility
Weak IT Earnings Lead Nifty to Settle Lower for 3rd Day
Indices Under Pressure for Second Straight Day
This article is only for educational purposes and is not an investment advice.