Indian Stocks Rattled by Overnight Slump in US Markets

At the close, the Nifty 50 was at 17,554.30 down by 1.53%

The Nifty 50 is an index of the National Stock Exchange of India (NSE), which represents the performance of the top 50 companies listed on the exchange. A decline of 1.53 percent in a single trading day is a significant movement, indicating a bearish sentiment in the market. A closing below the level of 17560 also suggests a potential downward trend in the short term.

The Indian equity benchmarks ended 1.5 percent lower on February 22, as profit-taking extended for the fourth consecutive session, leaving investors concerned about the prospect of further rate hikes by central banks and Russia’s renewed warnings to the West regarding the conflict in Ukraine.

On February 22, the Nifty50 index, which tracks the performance of the top 50 companies listed on the (NSE), experienced a sharp drop in its opening value, and closed with the largest single-day loss since January 27.

Buzzing

Investors grew increasingly wary in anticipation of the release of the minutes from the Reserve Bank of India and the US Federal Reserve’s policy meetings, which will provide insight into their respective rate hike strategies.

There could be several reasons for this decline in the Nifty50 index. One possible reason is the fresh nuclear warnings issued by Moscow to the West, which may have increased geopolitical tensions and caused investors to become more risk-averse. Additionally, market participants may have been cautious ahead of two significant events that were scheduled to take place later in the day. The first was the release of the FOMC (Federal Open Market Committee) minutes, which could provide insight into the US Federal Reserve’s monetary policy decision-making process. The second was the release of the RBI (Reserve Bank of India) monetary policy minutes, which could provide insight into the RBI’s views on the Indian economy and any potential changes in interest rates.

Buzz

Crude oil futures traded lower on Wednesday morning as the market anticipated that the release of minutes from the US Federal Reserve’s meeting later in the day could influence global demand for crude oil.

The minutes of the Federal Reserve’s meeting are critical for the market, as several US Fed officials have suggested an increase in interest rates in response to the US inflation figures. This could have a significant impact on the economy, potentially leading to a shift in the financial landscape.

A pattern of lower highs and lower lows is a classic sign of a downtrend in technical analysis. The fact that the Nifty 50 has decisively broken its 200-day EMA (exponential moving average) and upward sloping support trendline is a strong bearish signal. The 200-day EMA is a widely used technical indicator that shows the average price of an asset over the past 200 days. When the price of an asset crosses below its 200-day EMA, it’s often considered a bearish signal.

The upward sloping support trendline is a technical indicator that connects the lows of an asset over time, and a break below this line indicates a shift from an uptrend to a downtrend. Taken together, these technical signals suggest negative strength in the Nifty 50 market.

Bank Nifty: Down by 1.67%

A 1.67% drop in the Bank Nifty and 1.53% in the BSE Sensex on a single trading day is a major event, signaling a bearish sentiment in the Indian stock market. The closing at a low of 39,995.90 for the Bank Nifty and 59,744.98 for the BSE Sensex further suggests that the market may be headed for a downward trend in the near future.

The Bank Nifty and the BSE Sensex are two of the most closely monitored indices of the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE), respectively. Investors and traders alike keep a keen eye on these indices, as they are indicative of the overall performance of the Indian stock market.

All sectoral indices closed in the red, with Nifty Auto, Bank, Energy, Infrastructure, Information Technology, PSU Bank, and Metal indices all declining by 1-2 percent. This downturn in the markets reflects a general lack of investor confidence in the current economic climate.

Bank Nifty

The Nifty Banking sector experienced a mixed bag of results for the day, with no gainers in sight. The biggest losers included Punjab National Bank, which saw a 2.85% drop, followed by IDFC First Bank with a 2.38% decline, HDFC Bank with a 1.96% decrease, ICICI Bank with a 1.96% dip, and Bank of Baroda with a 1.78% plunge. These results indicate that banking stocks did not fare well on the day.

Advance Decline Ratio

Today, the advance-decline ratio was 0.25, and the market breadth was negative. The volatility index India Vix increased by 11.27 percent to settle at 15.59 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 450
Decliners – 1788
52Wk High –  29
52Wk Low – 203
High Band Hitters – 34
Low Band Hitters – 84
200d SMA – 17349
50d SMA – 17986
20d SMA – 17796

Top Gainers and Losers Stocks

The top gainers were ITC (+0.50%), and Bajaj Auto (+0.26%).

The top losers were Adani Enterprises (-11.05%), Adani Ports (-7.24%), Grasim (-3.44%), Bajaj Finance (-2.94%), and JSW Steel (-2.79%).

Top Gainers and Losers Sector

The top losers sectors were Metal (-2.64%), Media (-1.93%), Financial Services (-1.76%), Realty (-1.67%), and Oil & Gas (-1.39%).

The Nifty Midcap 50 was down by 1.05 percent, while the Nifty Small Cap 50 down by 1.35 percent on the day.

The Nifty Midcap 50 index currently closed at 8,519.75, while the Nifty Small Cap 50 index currently closed at 4,169.60.

SECTORS – NOTABLE ACTION
METAL -2.64%
MEDIA -1.93%
FINANCIAL SERVICES -1.76%

Stocks Ban List

(SEBI) F&O ban list (IDEA open at 7.00 and close at 7.00) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned IDEA from trading in the futures and options (F&O) segment of 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.

ADANIENT, PNB, DELTACORP, AMBUJACEM and IBULHSGFIN has a possibilites of entery in a ban list.

Daily Pivots

As per the above pivots data, 17460 to 17720 is the Nifty 50 trading range

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