Last-Hour Selling Erases Day’s Gains, Indian Market Still Ends Higher

At the close, the Nifty 50 was at 22,368.00 up by 0.14%

The NSE Nifty 50 commenced the trading session on a positive note, edging up by 0.14% and maintaining the green trajectory throughout the day. However, the market encountered a late-hour sell-off, relinquishing most of the day’s gains to close modestly higher for the third consecutive session. The Nifty closed at 22,368.00, marking a gain of 31.60 points or 0.14%.

Positive global cues initially fueled market optimism, as concerns regarding heightened tensions in West Asia subsided and volatility decreased. Despite this positive sentiment, profit booking activities in the final trading hour erased a significant portion of the earlier gains.

The day witnessed a range-bound trading pattern, culminating in a modest uptick by the closing bell. Although the Nifty remained directionless, it sustained trading above critical moving averages, maintaining an overall positive trend.

Tuesday’s session reflected a continuation of the recent trend, with the Nifty 50 exhibiting higher tops and higher bottoms formation for the second consecutive day. However, the daily charts displayed a bearish candlestick pattern, following the Doji pattern observed in the previous session.

While global cues remained supportive, tensions between Iran and Israel, although seemingly contained, contributed to market uncertainties. Additionally, the rise in crude oil prices prompted investors to reassess associated risks.

Furthermore, the market observed higher levels of the dollar index and U.S. bond yields, suggesting potential outflows by foreign institutional investors (FIIs). Nevertheless, inflows from domestic institutional investors (DIIs) have provided some support to the market’s recovery, contributing to the overall resilience of the domestic market amidst global uncertainties.

Bank Nifty: Up by 0.10%

The Bank Nifty commenced the trading session on a positive note, opening in the green and witnessing a slight increase of 0.10%. By the end of the trading day, it closed higher at 47,970.45, reflecting a continued upward momentum.

Similarly, the BSE Sensex also experienced a positive trajectory, rising by 0.12% during the trading session. It closed at a high of 73,738.45, marking a modest gain and further reinforcing the overall bullish sentiment in the market.

In the sectorial front, the real estate sector showcases promising growth, with an impressive 2.58% surge. Notably, Sobha Ltd. emerges as a frontrunner, experiencing a remarkable 5.65% increase in its stock value, closely followed by Prestige Estates Projects Ltd., which sees a notable uptick of 3.75%. Investors in the realty sector are witnessing significant returns, buoyed by these encouraging developments.

Conversely, the pharmaceutical industry experiences a slight setback, with a decrease of 0.96%. Within this sector, Sun Pharmaceutical Industries Ltd. registers a notable decline, with a loss of -3.56%, while Abbott India Ltd. also faces a downturn, with a decrease of -2.17%.

Foreign Institutional Investors (FII/FPI) recorded a net value of -3,044.54 crore rupees during the reporting period, reflecting a higher value of sales compared to purchases. The buy value stood at 14,931.47 crore rupees, while the sale value amounted to 17,976.01 crore rupees.

Conversely, Domestic Institutional Investors (DII) demonstrated a contrasting trend, with a net value of 2,918.94 crore rupees. DIIs exhibited a higher buy value of 12,337.81 crore rupees against a sale value of 9,418.87 crore rupees.

Bank Nifty

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

The gainers included Bandhan Bank with a 1.02% increase, State Bank of India with a 0.90% increase, IDFC First Bank with a 0.36% increase, AU Bank with a 0.35% increase, and ICICI Bank with a 0.25% increase. On the other hand, the biggest losers in the sector included Bank of Baroda with a 0.46% decline, HDFC Bank with a 0.31% decline, IndusInd Bank with a 0.24% decline, and Punjab National Bank with a 0.11% decline. These results suggest that most of the banking stocks performed better for the day.

Indian Rupee Remains Steady Amid Dollar Demand

The Indian rupee maintained stability against the U.S. dollar on Tuesday, showing resilience despite fluctuating demand dynamics. Closing at 83.3425 against the dollar, the rupee demonstrated marginal movement from its previous session’s close, reflecting a balanced market sentiment.

Although the rupee briefly surged to a session high of 83.2925, marking its highest level since April 10, it relinquished these gains due to increased dollar demand from importers, underscoring the currency’s vulnerability to external pressures.

While the dollar index remained steady around 106, Asian currencies experienced a mixed performance. The offshore Chinese yuan declined slightly by 0.1% against the dollar, whereas the Korean won and Indonesian rupiah recorded modest gains.

Analysts anticipate that the rupee’s upward momentum may be constrained around the 83.00 mark in the near-to-medium term, according to Anindya Banerjee, head of foreign exchange research at Kotak Securities.

Furthermore, dollar-rupee forward premiums experienced a decline, with the 1-year implied yield dropping by 1 basis point to 1.66%. This decrease can be attributed to the upward movement in near-maturity U.S. bond yields, with the 1-year U.S. Treasury yield rising by 4 basis points to 5.21% during Asian trading hours.

The recent recovery of the rupee from its record-low of 83.5750, observed last Friday, can be attributed to potential intervention by the Indian central bank and easing concerns regarding the Iran-Israel conflict, suggesting a cautious optimism in the currency market.

Stocks Highlights

Bharti Airtel Ltd. Shows Positive Momentum

Bharti Airtel Ltd. witnessed a notable increase in share price, rising by 3.83% from its previous close of Rs 1,297.55 to reach Rs 1,347.30. Notably, only 1.92% of trading sessions in the last 19 years saw intraday gains exceeding 5%, highlighting the significance of this upward movement.

Analysis of the company’s financials reveals that Bharti Airtel allocated 13.87% of its operating revenues towards interest expenses and 3.47% towards employee costs in the fiscal year ending March 31, 2023. Furthermore, the stock outperformed both the Nifty 100 and S&P BSE Telecommunication indices, boasting a remarkable 3-year return of 148.29%.

Sun Pharmaceutical Industries Ltd. Faces Decline

In contrast, Sun Pharmaceutical Industries Ltd. experienced a decline in its share price, dropping by -3.56% from its previous close of Rs 1,540.10 to Rs 1,485.30. Despite this setback, the occurrence of a buy signal suggests a potential bullish trend, with a 50-day moving crossover emerging recently.

Examining the company’s financials, it is noted that Sun Pharmaceutical Industries allocated less than 1% of its operating revenues towards interest expenses but dedicated a significant 18.9% towards employee costs in the fiscal year ending March 31, 2023.

Despite the recent decline, Sun Pharmaceutical Industries still demonstrated a commendable 3-year return of 141.41%, outperforming the Nifty 100 index. Investors may monitor the stock closely, considering the potential impact of recent market trends and the buy signal on its future performance.

Advance Decline Ratio

Today, the advance-decline ratio was 1.58, and the market breadth was positive. The volatility index India Vix decreased by 19.72 percent to settle at 10.20 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1572
Decliners – 997
52Wk High – 377
52Wk Low – 271
High Band Hitters – 182
Low Band Hitters – 31
200d SMA – 20671
50d SMA – 22190
20d SMA – 22340

Top Gainers and Losers Stocks

The top gainers were Grasim (+3.90%), Bharti Airtel (+3.83%), Nestle India (+1.66%), Maruti (+1.48%), and Tata Motors (+1.46%).

The top losers were Sun Pharmaceutical (-3.56%), BPCL (-1.65%), Reliance (-1.36%), Dr. Reddy (-1.18%), and Hindalco (-1.06%).

Top Gainers and Losers Sector

The top gainers sector were Realty (+2.58%), FMCG (+0.76%), Consumer Durables (+0.65%), Media (+0.53%), and IT (+0.52%).

The top losers sector were Pharma (-0.96%), Oil & Gas (-0.73%), and Metal (-0.34%).

SECTORS – NOTABLE ACTION
REALTY +2.58%
FMCG +0.76%
CONSUMER DURABLES +0.65%
PHARMA -0.96%
OIL & GAS -0.73%
METAL -0.34%

Stocks Ban List

(SEBI) F&O ban list (HINDCOPPER open at +381.55 and close at -372.05), (IDEA open at +13.00 and close at +14.40), (ZEEL open at -142.20 and close at +143.55), (BIOCON open at +275.00 and close at +280.15), (PEL open at +850.00 and close at +859.45), and (SAIL open at +149.70 and close at +152.25) 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.

LICHSGFIN, NATIONALUM, CANBK, INDIACEM, TATACHEM, INDUSTOWER, and ABFRL stocks has the possibilities of entrance in the ban list.

BIOCON, PEL, and SAIL stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 22150 to 22500 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Indian Equities Rally Amidst Global Relief, Nifty Surpasses 22,300 Mark
Debunking Common Myths About IPOs
Market Bounces Back Strongly as Banks and Metals Lead the Way

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