Market Concludes with Modest Gains amidst Late Selling Pressure

At the close, the Nifty 50 was at 18,348.00 up by 0.18%

Today marked a favorable commencement for the NSE Nifty 50 as it commenced on a soaring note, displaying an impressive ascent of 0.18 percent, ultimately concluding the day in a positive trajectory. The Nifty index showcased resilience, concluding near the remarkable level of 18350, exemplifying its steadfastness and reaffirming its status as a prominent player in the market.

Throughout the trading session, the Nifty index showcased a predominantly lateral movement, delicately oscillating in the vicinity of the 18400 mark. While substantial fluctuations were absent, the prevailing market sentiment retained a positive outlook, reinforced by the Nifty’s ability to maintain a position above the critical support level of 18300. Notably, a discernible barrier manifested itself at 18500, serving as a notable resistance zone. In the event of a decisive breakthrough beyond this resistance threshold, it has the potential to ignite a significant upsurge, propelling the Nifty towards the promising milestone of 18800, thereby setting the stage for an impressive rally.

Among the various sectors, the metal sector emerged as the leading gainer, exhibiting a commendable rise of 2.59%. Within this sector, ADANI ENTERPRISES LIMITED demonstrated noteworthy strength, securing a gain of 13.49%. APL APOLLO TUBES LIMITED followed suit, garnering an impressive increase of 4.81%, while JINDAL STAINLESS LIMITED also displayed a notable rise of 3.70%.

Conversely, the IT sector experienced a decline, emerging as the top loser with a marginal decrease of 0.46%. Within this sector, LTIMINDTREE LIMITED faced a setback, witnessing a decline of 2.60%. PERSISTENT SYSTEMS LIMITED encountered a loss of 1.81%, while COFORGE LIMITED also experienced a decline of 1.74%. Despite these contractions, it is essential to note that the market remains dynamic and subject to fluctuations, presenting opportunities for potential rebounds and strategic maneuvers.

Bank Nifty: Up by 0.16%

The day unfolded with a magnificent display of strength for the Bank Nifty, as it commenced on an optimistic note, donning the hues of green. Exhibiting its mettle, the index showcased an upward movement of 0.16 percent, culminating in a remarkable closure at the esteemed level of 43,954.45. Likewise, the BSE Sensex embarked on a graceful ascent, embellished by a rise of 0.03 percent, ultimately reaching the pinnacle of its performance at an impressive high of 61,981.79, elegantly sealing the day’s proceedings in the realm of positive territory.

The Bank Nifty index has seen a significant increase in shorting activity, particularly in relation to the 44,000 put options that are set to expire this week. As a result, traders have opted to convert their existing sold calls into short straddles with a strike price of 44,000. This strategic move indicates that traders are anticipating limited volatility in either direction for the index during this week’s expiry.

Similarly, when we look at the Nifty index, we see a balanced distribution, with an almost equal number of sold puts and sold calls heading into the approaching expiry. These observations provide valuable insight into the prevailing sentiments and trading strategies of market participants as they prepare for the upcoming expiry.

On the date of 23/05/2023, Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) engaged in market activities with a buy value amounting to 7,829.51 crore rupees. Simultaneously, their sale value stood at 7,647.00 crore rupees, resulting in a net value of 182.51 crore rupees.

Similarly, Domestic Institutional Investors (DII) also participated actively on 23/05/2023. Their buy value amounted to 5,543.09 crore rupees, while the sale value reached 5,145.80 crore rupees, resulting in a net value of 397.29 crore rupees.

Bank Nifty

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

The gainers included Bandhan Bank with a 4.56% increase, Bank of Baroda with a 1.05% increase, IndusInd Bank with a 1.02% increase, AU Bank with a 0.59% increase and State Bank of India with a 0.55% increase. On the other hand, the biggest losers in the sector included Kotak Bank with a 0.99% decline, Federal Bank with a 0.52% decline, Axis Bank with a 0.50% decline, IDFC First Bank with a 0.45% decline, and HDFC Bank with a 0.43% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

The shares of Adani Enterprises Ltd. embarked on a remarkable journey, ascending with an impressive surge of 13.16% from its preceding close of Rs 2,326.10. The current trading price of Adani Enterprises Ltd. stock stands at an impressive 2,632.15, attesting to its vibrant momentum. Notably, the stock has delivered a remarkable three-year return of 1584.36%, outshining the performance of Nifty 100, which garnered a return of 95.74% over the same period. Moreover, the company’s annual revenue growth of 96.18% has proven to be a remarkable feat, surpassing its three-year compound annual growth rate (CAGR) of 45.79%, exemplifying its resolute commitment to sustained progress and robust financial performance.

The share price of Divi’s Laboratories Ltd. witnessed a commendable upswing, surging by 3.70% from its previous closing value of Rs 3,265.00. The latest traded price of Divi’s Laboratories Ltd. stock stands at an impressive 3,385.80, underscoring its enduring market appeal. Over a span of three years, the stock has exhibited a solid return of 40.73%, although it falls short when compared to the Nifty 100’s return of 95.74% during the same period. A noteworthy development occurred yesterday with the emergence of a 50-day moving crossover, which historically signifies a positive market trend. Over the past five years, this particular signal has resulted in an average price gain of 5.26% within 30 days. However, it is important to note that the company experienced a decline in sales by 10.6%, marking the first instance of revenue contraction in the last three years. Despite this, Divi’s Laboratories Ltd. remains an influential player in the market, driven by its strong track record and consistent performance.

Buzz

In a session marked by subdued movements in the domestic equities, the rupee engaged in a narrow trading range and concluded the day with a marginal uplift of 2 paise at 82.82 (provisional) against the US dollar on Tuesday. Forex traders highlighted that the strength exhibited by the American currency served as a limiting factor, curbing significant advances for the local unit.

Within the interbank foreign exchange market, the rupee initiated trading at 82.82 against the US dollar, reaching a peak of 82.76 and a trough of 82.84 during the course of intra-day trade.

Ultimately, the local unit settled at 82.82 (provisional), marking a modest gain of 2 paise in comparison to its previous closure. During the preceding trading day, which was Monday, the rupee had concluded at 82.84 against the US currency, providing a point of reference for its performance.

Advance Decline Ratio

Today, the advance-decline ratio was 1.04, and the market breadth was positive. The volatility index India Vix increased by 0.27 percent to settle at 12.61 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1155
Decliners – 1113
52Wk High –  70
52Wk Low – 15
High Band Hitters – 68
Low Band Hitters – 50
200d SMA – 17803
50d SMA – 17692
20d SMA – 18172

Top Gainers and Losers Stocks

The top gainers were Adani Enterprises (+13.49%), Divi’s Laboratories (+3.61%), Bajaj Finserv (+1.82%), Eicher Motors (+1.54%), and UPL (+1.54%).

The top losers were Apollo Hospitals (-1.40%), HCL Technologies (-1.33%), Grasim (-1.18%), Tech Mahindra (-1.18%), and Kotak Bank (-0.99%).

Top Gainers and Losers Sector

The top gainers sectors were Metal (+2.59%), Media (+1.12%), Oil & Gas (+0.72%), Auto (+0.66%), and Pharma (+0.57%).

The top losers sectors were IT (-0.46%), Consumer Durables (-0.21%), and Realty (-0.08%).

The Nifty Midcap 50 was up by 0.54 percent, while the Nifty Small Cap 50 was up by 0.12 percent on the day.

The Nifty Midcap 50 index currently closed at 9,286.15, while the Nifty Small Cap 50 index currently closed at 4,489.40.

SECTORS – NOTABLE ACTION
METAL +2.59%
MEDIA +1.12%
OIL & GAS +0.72%
IT -0.46%
CONSUMER DURABLES -0.21%
REALTY -0.08%

Stocks Ban List

(SEBI) F&O ban list  (IBULHSGFIN open at +113.00 and close at -111.60), (L&TFH open at +100.00 and close at -98.35), and (MANAPPURAM open at -108.80 and close at +6111.05) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned IBULHSGFIN, L&TFH, and MANAPPURAM 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.

It seems that BHEL, PNB, and RBLBANK may be at risk of being added to the ban list.

MANAPPURAM has the possibilites of exited from ban list.

Daily Pivots

As per the above pivots data, 18300 to 18410 is the Nifty 50 trading range.

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