Intraday Volatility High Despite Narrow Range

At the close, the Nifty 50 was at 21,743.25 up by 0.59%

Today, the NSE Nifty 50 index started on a positive note, rising by 0.59% and closing in the green, with the Nifty surpassing the 21,700 mark. Indian equity markets mirrored the positive trend observed in Asian markets, buoyed by anticipation surrounding the crucial US inflation data announcement. Backed by favorable macroeconomic indicators, the Indian market rebounded from previous losses, with banking stocks leading the charge.

The Nifty witnessed a volatile trading session, oscillating between gains and losses before ultimately closing up by approximately 127 points. Although the market displayed narrow rangebound movement, intraday volatility remained high. However, the broader market exhibited resilience, witnessing buying interest and closing in positive territory. This suggests a potential stabilization in the coming trading sessions.

Despite today’s positive performance, challenges persist, including geopolitical concerns, stretched valuations of local stocks, and foreign institutional investor (FII) selling. Moreover, mixed financial earnings and delays in rate cuts by central banks have impacted banking stocks, contributing to market volatility.

Investor sentiment improved with gains in the banking sector, supported by a decline in domestic inflation, expected to stimulate rural demand. However, caution prevails ahead of the US inflation data release, which holds significance for the Federal Reserve’s interest rate decisions.

While today’s market recovery signals optimism, ongoing uncertainties and external factors necessitate vigilance and strategic decision-making by investors in navigating the evolving market landscape.

Bank Nifty: Up by 1.38%

The Bank Nifty commenced on a positive note, opening in the green and recording a significant increase of 1.38%. It continued its upward trajectory throughout the day, ultimately closing in the green at 45,502.40, reflecting investor optimism and confidence in the banking sector.

Likewise, the BSE Sensex also witnessed a notable surge, rising by 0.68% during the trading session. The index closed at a high of 71,555.19, signaling positive market sentiment and robust performance across various sectors.

In the sectorial front, the financial services sector has emerged as a frontrunner, experiencing a notable surge of 1.37%. Leading the charge, HDFC Asset Management Company Ltd. witnessed a remarkable gain of 3.36%, closely followed by Cholamandalam Investment And Finance Company Ltd., which saw an increase of 3.24%. Conversely, the metal sector faced significant downturn, registering a decline of 2.07%. Notably, Hindalco Industries Ltd. bore the brunt of this downturn, experiencing a substantial loss of -12.53%. Similarly, Steel Authority Of India Ltd. also witnessed a downturn, with a loss of -3.67%.

Foreign Institutional Investors (FIIs/FPIs) displayed a net buying activity in the Indian market, with a buy value of Rs. 13,404.37 crore and a sale value of Rs. 13,028.05 crore, resulting in a net value of Rs. 376.32 crore. Conversely, Domestic Institutional Investors (DIIs) also participated actively, recording a buy value of Rs. 9,167.73 crore and a sale value of Rs. 8,893.79 crore, leading to a net value of Rs. 273.94 crore.

Bank Nifty

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

The gainers included Punjab National Bank with a 2.92% increase, Axis Bank with a 2.28% increase, ICICI Bank with a 2.25% increase, IDFC First Bank with a 1.70% increase, and Bank of Baroda with a 1.57% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 0.52% decline, and AU Bank with a 0.45% decline. These results suggest that some of the banking stocks performed better for the day.

Rupee Steady Against Dollar Amidst Mixed Market Forces

The Indian rupee maintained its stability against the US dollar, settling flat at 83 on Tuesday. Despite the boost from a rally in domestic equities, the currency faced headwinds from a robust greenback in the global market and escalating crude oil prices.

At the interbank foreign exchange, the rupee commenced trading at 83 against the dollar, touching an intraday high of 82.98 and a low of 83.02 before finally closing at 83.00 (pro), unchanged from the previous session. Notably, the rupee had appreciated by 7 paise against the dollar on Monday, closing at 83.

Market analysts anticipate the rupee to exhibit a slight positive bias, driven by upbeat Asian markets and fresh foreign inflows. However, the currency’s gains may be limited due to the prevailing strength of the greenback and the upward trajectory of crude oil prices.

In parallel developments, the dollar index, which measures the dollar’s performance against a basket of six major currencies, saw a marginal increase, trading at 104.21, ahead of the US inflation report. Concurrently, Brent crude futures, the global oil benchmark, climbed by 0.85% to $82.70 per barrel.

Amidst these mixed market dynamics, investors and traders are advised to monitor key economic indicators and global trends closely to navigate currency fluctuations effectively.

Stocks Highlights

In recent trading sessions, Coal India Ltd. has demonstrated a positive momentum, with its share price climbing by 4.67% to reach Rs 453.00 from its previous close of Rs 432.80. The company’s robust annual revenue growth of 27.45% has outpaced its 3-year compound annual growth rate (CAGR) of 12.19%, indicating promising prospects. Additionally, a bullish signal was triggered as the 200-day moving average crossed over, historically resulting in an average price gain of 7.89% within 30 days.

On the contrary, Hindalco Industries Ltd. witnessed a significant decline in its share price, dropping by -12.53% to Rs 509.45 from Rs 582.45. Analysis reveals that the company has allocated 1.63% of its operating revenues towards interest expenses and 5.85% towards employee costs in the fiscal year ending March 31, 2023. Moreover, bearish signals emerged as both the 10-day and 5-day moving averages crossed over, historically leading to an average price decline of -2.1% and -2.5% respectively within 7 days.

Advance Decline Ratio

Today, the advance-decline ratio was 0.89, and the market breadth was negative. The volatility index India Vix decreased by 1.58 percent to settle at 15.81 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1182
Decliners – 1332
52Wk High –  58
52Wk Low – 49
High Band Hitters – 57
Low Band Hitters – 235
200d SMA – 19807
50d SMA – 21500
20d SMA – 21667

Top Gainers and Losers Stocks

The top gainers were Coal India (+4.67%), UPL (+4.54%), Axis Bank (+2.28%), ICICI Bank (+2.25%), and HDFC Life (+2.06%).

The top losers were Hindalco (-12.53%), Grasim (-3.67%), Divi’s Laboratories (-1.07%), UltraTech Cement (-1.04%), and BPCL (-0.99%).

Top Gainers and Losers Sector

The top gainers sector were Financial Services (+1.37%), Consumer Durables (+0.66%), IT (+0.54%), Pharma (+0.45%), and Oil & Gas (+0.45%).

The top losers sector were Metal (-2.07%), and Media (-0.03%).

SECTORS – NOTABLE ACTION
FINANCIAL SERVICES +1.37%
CONSUMER DURABLES +0.66%
IT +0.54%
METAL -2.07%
MEDIA -0.03%

Stocks Ban List

(SEBI) F&O ban list (BANDHANBNK open at -200.70 and close at -199.05), (INDUSTOWER open at -213.50 and close at -209.40), (ZEEL open at -188.20 and close at +188.65), (ABFRL open at -242.00 and close at -240.65), (SAIL open at -120.05 and close at -117.85), (INDIACEM open at -236.05 and close at -232.50), (DELTACORP open at -137.95 and close at -137.00), (BALRAMCHIN open at -373.75 and close at -371.85), (AUROPHARMA open at -1031.90 and close at +1026.40), (ASHOKLEY open at -171.80 and close at +172.95), (BIOCON open at -267.00 and close at +267.20), (PNB open at -118.30 and close at +122.10), and (HINDCOPPER open at -240.75 and close at +250.80) 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.

CANBK, PEL, RBLBANK, NATIONALUM, GMRINFRA, TATACHEM, GNFC, PVRINOX, and MANAPPURAM stocks has the possibilities of entrance in the ban list.

HINDCOPPER stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 21550 to 21850 is the Nifty 50 trading range.

Read previous -Daily Insights- here
NSE Nifty 50 Sees Decline Amidst Market Volatility
Wise Travel India Limited IPO
Valuation Concerns Shake the Market Mid- and Small-Cap Indices Bear the Brunt

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