Market Awaits Key India-US Inflation Data, Adopts Defensive Stance

NiftyTrader • August 9, 2023

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Index	Price	Change	% Chg
Nifty 50	19,632.55	+61.70	+0.32%
Nifty Bank	44,880.70	–83.75	-0.19%
BSE SENSEX	65,995.81	+149.31	+0.23%

At the close, the Nifty 50 was at 19,632.55 up by 0.32%

In the trading session today, the NSE Nifty 50 commenced with a downward, but exhibited resilience by gaining 0.32 percent by the closing bell, concluding the day on a positive note. The index successfully crossed the crucial 19600 level, demonstrating its strength and potential for further growth. This performance highlights the dynamic nature of the market and the NSE Nifty’s ability to recover and thrive, positioning it favorably for potential future gains.

Following a two-day period of weakness, the markets exhibited a notable rebound during the late trading session. The resurgence was buoyed by the robust performance of European indices and substantial gains in sectors such as metals, oil & gas, and auto stocks, all of which contributed significantly to boosting overall market sentiment.

The domestic market strategically positioned itself defensively, with investors eagerly anticipating pivotal inflation data from India and the US. The influence of China’s deflationary trajectory and the downgrade of mid- and small-sized US banks reverberated across the market, impacting sentiment.

A late-stage resurgence within the domestic market found support in the European market’s positive momentum. This resurgence was further propelled by the hopeful outlook regarding an encouraging Reserve Bank of India (RBI) policy, which is anticipated to leave a positive imprint on the domestic economic growth landscape.

Bank Nifty: Down by 0.19%

Today witnessed mixed market movements as the Bank Nifty commenced with a downward gap, resulting in a 0.19 percent decline and a closing value of 44,880.70 in the red zone. Conversely, the BSE Sensex showcased a 0.23 percent increase, concluding the session on a positive note at an elevated level of 65,995.81, demonstrating its resilience and potential for upward momentum.

In the arena of sectorial performance, Media emerges as a frontrunner with a significant rise of 2.10%. Noteworthy gainers in this sphere include Dish TV India Ltd., boasting an impressive increase of 11.17%, and Navneet Education Ltd., showcasing a commendable gain of 3.43%.

Contrastingly, the Realty sector faces a downturn, witnessing a decrease of 1.24%. Notable entities within this sector, Brigade Enterprises Ltd. and Prestige Estates Projects Ltd., unfortunately, encounter declines of -4.01% and -2.58% respectively.

Foreign Institutional Investors (FII/FPI) showcased a buy value of Rs. 9,342.47 crore alongside a sale value of Rs. 8,698.36 crore, resulting in a net value of Rs. 644.11 crore.

On the other hand, Domestic Institutional Investors (DII) recorded a buy value of Rs. 8,041.44 crore, coupled with a sale value of Rs. 8,639.32 crore, resulting in a net value of -Rs. 597.88 crore.

Bank Nifty

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

The gainers included IDFC First Bank with a 0.80% increase, HDFC Bank with a 0.17% increase, IndusInd Bank with a 0.15% increase, ICICI Bank with a 0.11% increase, and State Bank of India with a 0.10% increase. On the other hand, the biggest losers in the sector included Punjab National Bank with a 1.05% decline, Federal Bank with a 0.63% decline, AU Bank with a 0.60% decline, Bandhan Bank with a 0.56% decline, and Bank of Baroda with a 0.54% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Indian Rupee Steadies Amidst Cautious Sentiment and Global Factors

The Indian rupee displayed stability on Wednesday, reflecting limited risk appetite and mixed signals from Asian markets. Ahead of crucial U.S. inflation data and the Reserve Bank of India’s (RBI) policy decision, the rupee held at 82.8150 against the dollar by 10:40 a.m. IST, showing minimal movement from the previous session. Tuesday saw the currency trading within a narrow range around 82.80, indicating a cautious market sentiment.

In parallel, crude oil futures faced downward pressure in the morning as China’s consumer price index (CPI) dipped into negative territory in July. This event heightened concerns about demand from the world’s prominent consumer. Further dampening the market, the unexpected surge in U.S. crude oil inventory for the week ending August 4 weighed on trading activities.

The global oil benchmark, Brent crude, experienced a decline of 0.22%, settling at $85.98 a barrel.

Buzzing

Dr. Reddy’s Laboratories Ltd. exhibited strong momentum, with its share price surging by 3.92% from the prior close of Rs 5,657.95, reaching a last traded price of Rs 5,879.80. A promising 5-day moving average crossover emerged recently, historically yielding an average gain of 2.46% within 7 days over the past 5 years. The company’s robust annual revenue growth of 16.78% outshone its 3-year CAGR of 12.22%. Notably, the company achieved an impressive ROE of 19.35% in the fiscal year ending on March 31, 2023, surpassing its 5-year average of 14.06%.

In contrast, Divi’s Laboratories Ltd. encountered a decline, witnessing a -2.67% drop from its previous close of Rs 3,846.40, settling at a last traded price of Rs 3,743.70. Over a 3-year period, the stock generated a return of 38.12%, notably lower than Nifty 100’s return of 71.83%. A significant daily MACD crossover occurred on August 07, 2023, historically leading to an average price gain of 3.66% within 10 days over the past decade. The company faced a sales de-growth of 10.6%, experiencing revenue contraction for the first time in the last 3 years. Additionally, Divi’s Laboratories announced a dividend of Rs 30.0 per share on May 22, 2023, with a record date of August 11, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 1.21, and the market breadth was positive. The volatility index India Vix decreased by 1.63 percent to settle at 11.14 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1284
Decliners – 1064
52Wk High – 140
52Wk Low – 19
High Band Hitters – 85
Low Band Hitters – 45
200d SMA – 18262
50d SMA – 19201
20d SMA – 19657

Top Gainers and Losers Stocks

The top gainers were Dr. Reddy (+3.92%), JSW Steel (+3.20%), Hindalco (+2.91%), Tata Motors (+2.67%), and M&M (+2.41%).

The top losers were Divi’s Laboratories (-2.67%), Apollo Hospitals (-0.96%), Maruti (-0.78%), Bajaj Finance (-0.75%), and Asian Paint (-0.68%).

Top Gainers and Losers Sector

The top gainers sectors were Media (+2.10%), Metal (+2.03%), Oil & Gas (+1.01%), Auto (+0.93%), and Consumer Durables (+0.83%).

The top losers sectors were Realty (-1.24%), and Financial Services (-0.21%).

The Nifty Midcap 50 was up by 0.49 percent, while the Nifty Small Cap 50 was up by 1.12 percent on the day.

The Nifty Midcap 50 index currently closed at 10,855.90, while the Nifty Small Cap 50 index currently closed at 5,396.50.

SECTORS – NOTABLE ACTION
MEDIA +2.10%
METAL +2.03%
OIL & GAS +1.01%
REALTY -1.24%
FINANCIAL SERVICES -0.21%

Stocks Ban List

(SEBI) F&O ban list (CHAMBLFERT open at +277.60 and close at -273.30), (DELTACORP open at -182.45 and close at +186.00), (IBULHSGFIN open at -162.40 and close at +169.45), (HINDCOPPER open at -148.10 and close at +151.90), (INDIACEM open at -214.20 and close at +229.15), and (BALRAMCHIN open at -394.90 and close at +394.70) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned CHAMBLFERT, DELTACORP, IBULHSGFIN, HINDCOPPER, INDIACEM and BALRAMCHIN 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.

BHEL, MANAPPURAM, ZEEL, CANFINHOME, LICHSGFIN, PNB, RBLBANK, ABFRL, GRANULES, and VEDL stocks has the possibilities of enterance in the ban list.