Indian Equity Indices Start August on Negative Note, Witness Selling Pressure

NiftyTrader • July 28, 2023

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Index	Price	Change	% Chg
Nifty 50	19,646.05	–13.85	-0.07%
Nifty Bank	45,468.10	-211.20	-0.46%
BSE SENSEX	66,160.20	–106.62	–0.16%

At the close, the Nifty 50 was at 19,646.05 down by 0.07%

In today’s trading session, the NSE Nifty 50 exhibited a bearish start by opening at a lower point, witnessing a decline of 0.07 percent throughout the day, and ultimately closing in the red zone. The index settled below the critical level of 19650, raising concerns among investors.

The Nifty commenced the day on a flat note, experiencing erratic price movements characterized by high volatility. During the first half of trading, it drifted lower, but towards the close, it witnessed a remarkable recovery, managing to close off the intraday lows despite a decline of approximately 14 points.

The Indian equity indices began the August series with losses for the second consecutive session, impacted by selling pressure in information technology, banking, and oil & gas sectors.

Amid mixed global cues, the market opened negatively and witnessed continued selling throughout the day. Nevertheless, last-hour buying in the power and realty sectors managed to mitigate some of the earlier losses.

Foreign Institutional Investors (FII/FPI) recorded a Buy Value of Rs. 9,267.42 Cr. and a Sale Value of Rs. 10,291.33 Cr., resulting in a Net Value of -Rs. 1,023.91 Cr. On the other hand, Domestic Institutional Investors (DII) engaged in trading with a Buy Value of Rs. 8,813.04 Cr. and a Sale Value of Rs. 7,178.67 Cr., leading to a Net Value of Rs. 1,634.37 Cr.

Bank Nifty: Down by 0.46%

The Bank Nifty witnessed a gap-down opening and closed the session on a weak note. Although a pullback was observed in the last hour of trading, the overall market structure suggests a possible phase of temporary market stabilization.

During today’s trading session, the Bank Nifty faced a bearish opening, declining by 0.46 percent, and subsequently closed in the red zone at 45,468.10. Similarly, the BSE Sensex experienced a negative trend, witnessing a 0.16 percent drop, and concluded the day at a low of 66,160.20, signifying a challenging day for investors.

The release of US Q2 GDP data, surpassing expectations, had a diverse impact on the domestic market. Although the positive data was encouraging, it also raised concerns about the potential for another rate hike. The Fed chief’s comments emphasizing a data-centric approach, while not ruling out rate hikes, added to the prevailing uncertainty and contributed to a cautious mood among investors.

Market volatility was influenced by the reversal of the buying trend by Foreign Institutional Investors (FII) and the significant rise in US bond yields. On the other hand, Asian markets maintained a mostly positive outlook, as the Bank of Japan (BOJ) surprised speculators by deciding to retain the policy rate, dispelling earlier notions of stimulus measure removal.

Realty Sector Leads with Prestige Estates Projects and Mahindra Lifespace Gaining

In today’s sectorial performance, the Realty sector emerged as the top gainer, showcasing an impressive growth of 1.83%. Within this sector, Prestige Estates Projects Ltd. recorded substantial gains of 7.54%, while Mahindra Lifespace Developers Ltd. also experienced a notable increase of 4.40%. Conversely, the IT sector faced a setback, with Mphasis Ltd. witnessing a decline of -1.33% and Tata Consultancy Services Ltd. recording a loss of -1.26%.

Bank Nifty

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

The gainers included IDFC First Bank with a 1.70% increase, Bank of Baroda with a 1.03% increase, Federal Bank with a 0.97% increase, ICICI Bank with a 0.54% increase and Bandhan Bank with a 0.23% increase. On the other hand, the biggest losers in the sector included HDFC Bank with a 1.81% decline, Axis Bank with a 1.03% decline, IndusInd Bank with a 0.83% decline, Punjab National Bank with a 0.80% decline and AU Bank with a 0.53% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Rupee Depreciates to 82.24 Against USD Amid Fund Outflows and Crude Price Surge

The Indian rupee faced a significant setback, depreciating by 32 paise to close at 82.24 against the US dollar on Friday. This decline was primarily influenced by renewed foreign fund outflows and a downturn in the domestic equity markets.

Moreover, the domestic unit was further impacted by crude prices nearing $84 a barrel, causing additional pressure on the rupee. Concurrently, the US dollar strengthened due to favorable macroeconomic data from the United States.

Furthermore, the dovish stance adopted by the European Central Bank (ECB) and its decision to raise interest rates on Thursday contributed to boosting the US dollar’s performance.

Throughout the day at the interbank foreign exchange market, the Indian currency opened weak at 82.30 against the US dollar. Within the intra-day trading session, the rupee reached a peak of 82.19, while also touching its lowest level at 82.34, indicating heightened volatility in the forex market.

Buzzing

NTPC Ltd. Witnesses Impressive Performance with 3-Year Return of 130.41%

NTPC Ltd. demonstrated a robust performance in the stock market, as its share price surged by 3.76% from the previous close of Rs 201.95, reaching a last traded price of Rs 209.55. Over the past three years, the stock showcased remarkable growth, delivering a return of 130.41%, outperforming the Nifty 100, which achieved a return of 75.06% during the same period.

Additionally, the company’s annual revenue growth of 31.84% surpassed its 3-year Compound Annual Growth Rate (CAGR) of 16.39%, highlighting its steady financial performance. Moreover, on 19th May 2023, the company declared a dividend of Rs 3.0 per share, with a record date set for 11th August 2023.

Bajaj Finserv Ltd. Faces Decline, 3-Year Return at 161.54%

Bajaj Finserv Ltd. experienced a decline in its share price, slipping by -1.96% from its previous close of Rs 1,614.55, resulting in a last traded price of Rs 1,582.85. However, over the last three years, the stock achieved a significant return of 161.54%, surpassing the Nifty 100’s return of 75.06% over the same period.

Notably, a 14-day moving crossover occurred yesterday, indicating a potential trend change. It’s worth noting that historically, an average price decline of -3.23% has been observed within 7 days of this signal over the past 5 years.

Furthermore, Bajaj Finserv Ltd. showcased commendable annual revenue growth of 19.92%, outperforming its 3-year CAGR of 14.57%, signifying a positive outlook for the company’s financial performance.

Advance Decline Ratio

Today, the advance-decline ratio was 1.15, and the market breadth was positive. The volatility index India Vix decreased by 3.59 percent to settle at 10.14 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 5714
Decliners – 4948
52Wk High – 157
52Wk Low – 10
High Band Hitters – 66
Low Band Hitters – 33
200d SMA – 18167
50d SMA – 19011
20d SMA – 19578

Top Gainers and Losers Stocks

The top gainers were NTPC (+3.76%), Power Grid (+3.03%), Apollo Hospital (+2.50%), Adani Ports (+1.57%), and M&M (+1.42%).

The top losers were Bajaj Finserv (-1.96%), HDFC Bank (-1.81%), BPCL (-1.53%), TCS (-1.26%), and HCL Technologies (-1.24%).

Top Gainers and Losers Sector

The top gainers sectors were Realty (+1.83%), Media (+1.38%), Metal (+0.90%), FMCG (+0.88%) and Consumer Durables (+0.43%).

The top losers sectors were IT (+0.86%), Financial Services (+0.41%), Auto (+0.22%).

The Nifty Midcap 50 was up by 0.58 percent, while the Nifty Small Cap 50 was up by 0.29 percent on the day.

The Nifty Midcap 50 index currently closed at 10,686.30, while the Nifty Small Cap 50 index currently closed at 5,232.30.

SECTORS – NOTABLE ACTION
REALTY +1.83%
MEDIA +1.38%
METAL +0.90%
IT -0.86%
FINANCIAL SERVICES -0.41%
AUTO -0.22%

Stocks Ban List

As of today, the Securities and Exchange Board of India (SEBI) has not listed any stock in the ban list for Futures and Options (F&O) 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.