Market Dips Below 18,500 as Last-Hour Selling Occurs

At the close, the Nifty 50 was at 18,487.75 down by 0.25%

The NSE Nifty 50 began its trading session on a positive note, but unfortunately experienced a subsequent decline of 0.25 percent, ultimately concluding in a bearish trend. As a result, the Nifty index concluded its trading day below the noteworthy mark of 18,500.

The Nifty index exhibited a range-bound behavior, maintaining stability throughout the trading day. Nevertheless, as the market concluded, there was a notable prevalence of selling pressure. Anticipated market sentiment suggests a persistently negative outlook until the Nifty index successfully surpasses the crucial threshold of 18500.

Among the various sectors, Realty emerged as the top gainer, registering a gain of 1.09%. Within this sector, SOBHA LIMITED recorded a notable gain of 6.80%, followed by THE PHOENIX MILLS LIMITED with a gain of 2.09%, and MACROTECH DEVELOPERS LIMITED with a gain of 1.75%. Conversely, Financial Services experienced the highest decline, with a loss of 0.63%. Within this sector, KOTAK MAHINDRA BANK LIMITED witnessed a decline of 4.24%, while SBI LIFE INSURANCE COMPANY LIMITED and HDFC LIFE INSURANCE COMPANY LIMITED recorded losses of 2.02% and 1.92%, respectively.

As of June 1, 2023, Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI) engaged in trading activities. The FII/FPI buy value amounted to Rs. 8,751.66 crore, while the sale value reached Rs. 8,822.73 crore, resulting in a net value of -Rs. 71.07 crore. On the other hand, Domestic Institutional Investors (DII) were active on the same date. The DII buy value stood at Rs. 5,715.08 crore, while the sale value amounted to Rs. 5,226.15 crore, leading to a net value of Rs. 488.93 crore.

Bank Nifty: Down by 0.77%

The Bank Nifty began its trading session on a negative note, following a similar pattern to the previous case. It experienced a decline of 0.77 percent and closed in the red zone at a value of 43,790.20. Similarly, the BSE Sensex also witnessed a decrease of 0.31 percent, ending the day at a relatively low point with a closing value of 62,428.54.

Bank Nifty index continued to be influenced by bearish sentiment as sellers retained control over the market. Notably, selling pressure was observed near the resistance zone around 44200, indicating active selling activity at that particular level. Should the index maintain its position below the crucial threshold of 44,000, it may suggest the possibility of further downside potential.

The market concluded the session with a slight inclination towards negativity, characterized by a marginal negative bias, primarily impacting the banking sector as heavy profit booking took place. In light of the recent increase in the US debt ceiling, investors adopted a cautious approach, anticipating potential inflationary pressures in the United States.

Investors adopted a cautious stance as they anticipated the emergence of inflationary pressures in the United States. Consequently, the US 10-year bond yield experienced a slight upward movement. Market participants are now keenly observing the trajectory of US interest rates to gain a clearer perspective on the future market conditions.

Bank Nifty

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

The gainers included IDFC First Bank with a 1.33% increase, Axis Bank with a 0.73% increase, State Bank of India with a 0.55% increase, Federal Bank with a 0.44% increase and IndusInd Bank with a 0.34% increase. On the other hand, the biggest losers in the sector included Kotak Bank with a 4.24% decline, ICICI Bank with a 1.34% decline, AU Bank with a 0.64% decline, HDFC Bank with a 0.61% decline, and Punjab National Bank with a 0.29% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

Apollo Hospitals Enterprise Ltd. witnessed a rise of 4.35% in its share price, moving up from its previous closing value of Rs 4,621.95. The stock of Apollo Hospitals Enterprise Ltd. was last traded at Rs 4,823.00. Over a span of three years, the stock delivered a remarkable return of 236.56%, surpassing the return of Nifty 100, which stood at 89.73%. Notably, a Daily MACD crossover occurred yesterday, indicating a potential bullish signal. Historical data reveals an average price gain of 4.55% within 10 days following this signal over the past decade.

The share price of Coal India Ltd. experienced a decline of -4.66% from its previous closing value of Rs 241.25. The stock of Coal India Ltd. was last traded at Rs 230.00. Over a period of three years, the stock generated a return of 62.4%, which fell short of the return achieved by Nifty 100 at 89.73%. Yesterday, a 10-day moving average crossover was observed, indicating a potential bearish signal. Historical data indicates an average price decline of -3.12% within 7 days following this signal over the past 5 years. The company exhibited an annual revenue growth of 27.45%, surpassing its 3-year CAGR of 12.19%. Interestingly, in the last 12 years, only 0.51% of the trading sessions witnessed intraday declines greater than 5%.

Buzz

Securities and Exchange Board of India (SEBI), the capital markets regulator, announced an extension of the deadline for submitting public comments on the proposed significant amendments to mutual funds’ expense ratio until June 8. The objective of this proposal is to address distributor practices involving unwarranted scheme switching and promoting new fund offerings for higher commissions. SEBI had released a consultation paper on May 18 regarding the review of the total expense ratio (TER) imposed by Asset Management Companies (AMCs) on fund scheme unitholders, and originally sought comments on the proposal until June 1.

Advance Decline Ratio

Today, the advance-decline ratio was 1.51, and the market breadth was positive. The volatility index India Vix decreased by 3.13 percent to settle at 11.60 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1386
Decliners – 919
52Wk High –  119
52Wk Low – 22
High Band Hitters – 102
Low Band Hitters – 35
200d SMA – 17845
50d SMA – 17861
20d SMA – 18337

Top Gainers and Losers Stocks

The top gainers were Apollo Hospitals (+4.35%), Divi’s Laboratories (+2.55%), Bajaj Auto (+1.63%), Tata Motors (+1.54%), and Hero MotoCorp (+1.53%).

The top losers were Coal India (-4.66%), Kotak Bank (-4.24%), Bharti Airtel (-2.71%), SBI Life (-2.02%), and HDFC Life (-1.92%).

Top Gainers and Losers Sector

The top gainers sectors were Realty (+1.09%), Pharma (+1.06%), Media (+0.71%), IT (+0.43%), and Auto (+0.41%).

The top losers sectors were Financial Services (-0.63%), Oil & Gas (-0.13%), Metal (-0.10%), and FMCG (-0.09%).

The Nifty Midcap 50 was up by 0.21 percent, while the Nifty Small Cap 50 was up by 1.04 percent on the day.

The Nifty Midcap 50 index currently closed at 9,559.50, while the Nifty Small Cap 50 index currently closed at 4,673.20.

SECTORS – NOTABLE ACTION
REALTY +1.09%
PHARMA +1.06%
MEDIA +0.71%
FINANCIAL SERVICES -0.63%
OIL & GAS -0.13%
METAL -0.10%

Stocks Ban List

Today, the Securities and Exchange Board of India (SEBI) has not included any stock in the ban list for Futures and Options (F&O) trading.

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, IBULHSGFIN, and ZEEL Face Possible Entry in Ban List.

Daily Pivots

As per the above pivots data, 18430 to 18570 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Understanding The Players in the Market
Nifty Trims Losses with Late-Session Rebound
Markets Approach Record High Amid Mixed Global Cues
How to Measure Risk in Trading

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