Indian Stock Market Sees Minor Decline After Three Days of Growth

At the close, the Nifty 50 was at 22,453.30 down by 0.04%

Today, the NSE Nifty 50 began with a slight downturn of 0.04% and concluded the day in the red, with the index below the 22,500 mark. This marginal dip follows a three-day consecutive bull run, as investors witnessed profit booking across various sectors, contributing to a modest decline on April 2.

Despite the initial setback, the market demonstrated resilience throughout the trading session, recovering from a weak start to mitigate most of the losses by the final hour. Notably, the leadership from the metal and auto sectors played a pivotal role in steering the index towards recovery from negative territory.

While sectors such as Consumer Durables, Media, and Metal showcased robust performance, the IT segment experienced downward pressure. However, the broader markets, including Mid and Smallcaps, sustained strong outperformance, closing the session with gains exceeding 1%.

From a technical standpoint, the Nifty is poised for a cooling-off period following a sharp uptrend in previous sessions. Although the market temporarily dipped, it remains on track for a bullish trajectory, with corrective measures largely addressed in the first quarter of the calendar year.

Investors are advised to exercise caution amidst signs of potential consolidation, underscored by the appearance of consecutive Doji patterns on the daily chart. Additionally, the negative crossover of the hourly momentum indicator serves as a sell signal, suggesting the likelihood of further consolidation before the uptrend resumes.

While the market experiences a temporary dip, it presents an opportunity for investors to reassess their positions and navigate the evolving market landscape with caution and strategic foresight.

Bank Nifty: Down by 0.07%

The Bank Nifty commenced the day with a downward trend, opening in the red with a decrease of 0.07 percent, and concluded the session at 47,545.45, maintaining its position in negative territory. Similarly, the BSE Sensex experienced a decline of 0.15 percent, closing in the red at a low of 73,903.91. Both indices exhibited a bearish sentiment throughout the trading day, reflecting broader market dynamics and investor sentiment.

In the sectorial front, Consumer Durables Lead the Market Surge Consumer Durables emerged as the top-performing sector, witnessing a notable gain of 1.86%. Notable contributors to this surge were Dixon Technologies (India) Ltd., marking a significant increase of 4.32%, and Crompton Greaves Consumer Electricals Ltd., showing a robust gain of 3.83%.

IT Sector Faces Setback Contrastingly, the Information Technology (IT) sector experienced a decline, with a loss of 0.71%. Leading this downturn were HCL Technologies Ltd., witnessing a decrease of -1.59%, and Persistent Systems Ltd., facing a loss of -0.85%.

Foreign Institutional Investors (FIIs/FPIs) recorded a buy value of Rs. 13,279.04 crore and a sale value of Rs. 14,901.73 crore, resulting in a net value of -Rs. 1,622.69 crore. Conversely, Domestic Institutional Investors (DIIs) reported a buy value of Rs. 12,163.40 crore and a sale value of Rs. 10,210.68 crore, leading to a net value of Rs. 1,952.72 crore.

Bank Nifty

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

The gainers included Bandhan Bank with a 2.74% increase, IDFC First Bank with a 2.06% increase, Bank of Baroda with a 1.56% increase, IndusInd Bank with a 1.07% increase, and Federal Bank with a 1.05% increase. On the other hand, the biggest losers in the sector included Kotak Bank with a 1.90% decline, ICICI Bank with a 1.50% decline, and Axis Bank with a 0.29% decline. These results suggest that most of the banking stocks performed better for the day.

Rupee Stabilizes Amidst Dollar Strength and Elevated Oil Prices

The Indian rupee navigated a narrow trading range against the US dollar in early sessions on Tuesday, influenced by the robust performance of the American currency and escalated crude oil prices. Starting at 83.37 against the greenback in the interbank foreign exchange, the rupee slightly strengthened, touching 83.35, marking a marginal increase of 4 paise compared to its previous close.

However, the currency scenario shifted on Thursday as the rupee saw a minor depreciation of 6 paise, settling at 83.39 against the US dollar. The forex market remained inactive on Friday and Monday due to ‘Good Friday’ and the annual bank account closing, respectively.

Amidst these fluctuations, the dollar index, measuring the greenback’s prowess against six major currencies, experienced a marginal uptick of 0.05%, reaching 105.06. Concurrently, Brent crude futures, the global oil benchmark, surged by 0.43% to USD 87.80 per barrel, further influencing market sentiments.

These developments underscore the delicate balance of currency markets, where factors such as geopolitical tensions, economic indicators, and global commodity prices play pivotal roles in shaping currency valuations. Investors and traders alike must stay attuned to these dynamics to navigate the currency landscape effectively.

Stocks Highlights

Tata Consumer Products Ltd. witnessed a notable uptick in its share price, ascending by 4.05% from its previous close of Rs 1,086.90 to Rs 1,130.95. This positive movement is indicative of investor confidence and market optimism surrounding the company. Notably, in the past 19 years, only 1.63% of trading sessions experienced intraday declines exceeding 5%, underscoring the stability of Tata Consumer Products’ stock.

Analyzing the company’s financials, it’s evident that Tata Consumer Products has effectively managed its expenses. With less than 1% of operating revenues allocated towards interest expenses and 8.13% towards employee costs in the fiscal year ending March 31, 2023, the company demonstrates prudent financial management.

Furthermore, Tata Consumer Products outperformed both the Nifty 100 and Nifty FMCG indices, delivering a commendable 3-year return of 67.18%, compared to Nifty 100’s 54.12% and Nifty FMCG’s 54.52% returns over the same period.

In contrast, Hero MotoCorp Ltd. experienced a decline in its share price, decreasing by -2.43% from its previous close of Rs 4,680.75 to Rs 4,566.95. Despite this setback, intraday declines exceeding 5% were rare, occurring in only 1.0% of trading sessions over the past 19 years.

Similar to Tata Consumer Products, Hero MotoCorp Ltd. maintains a conservative approach to expenses, with minimal allocations towards interest expenses (less than 1% of operating revenues) and employee costs (6.59% of operating revenues) in the fiscal year ending March 31, 2023.

While Hero MotoCorp Ltd. delivered a respectable 3-year return of 58.34% compared to Nifty 100’s 54.12%, its performance lagged behind the Nifty Auto index, which saw a robust 113.37% return over the same period.

Advance Decline Ratio

Today, the advance-decline ratio was 3.13, and the market breadth was positive. The volatility index India Vix decreased by 3.55 percent to settle at 11.65 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1960
Decliners – 627
52Wk High –  105
52Wk Low – 6
High Band Hitters – 318
Low Band Hitters – 28
200d SMA – 20437
50d SMA – 21992
20d SMA – 22207

Top Gainers and Losers Stocks

The top gainers were Tata Consumer (+4.05%), M&M (+2.82%), BPCL (+2.58%), Bajaj Auto (+2.53%), and Adani Ports (+1.96%).

The top losers were Hero MotoCorp (-2.43%), Kotak Bank (-1.90%), HCL Technologies (-1.59%), ICICI Bank (-1.50%), and SBI Life (-1.39%).

Top Gainers and Losers Sector

The top gainers sector were Consumer Durables (+1.86%), Media (+1.85%), Metal (+1.50%), Oil & Gas (+1.30%), and Auto (+1.07%).

The top losers sector were IT (-0.71%), Financial Services (-0.22%), and Pharma (-0.12%).

SECTORS – NOTABLE ACTION
CONSUMER DURABLES +1.86%
MEDIA +1.85%
METAL +1.50%
IT -0.71%
FINANCIAL SERVICES -0.22%
PHARMA -0.12%

Stocks Ban List

Today, there are no stocks listed on the (SEBI) F&O ban list.

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.

HINDCOPPER, and PEL stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 22300 to 22600 is the Nifty 50 trading range.

Read previous -Daily Insights- here
FY25 Starts Strong with Nifty Reaching Unprecedented Heights
IPO of Bharti Hexacom Limited
FY24 Ends with Market Poised to Smash Records on Final Trading Day

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