Market Flat with Volatility as RBI Commences Meeting

At the close, the Nifty 50 was at 18,599.00 up by 0.03%

NSE Nifty 50 commenced its trading session on a bullish note, opening at a substantial level and experiencing a positive surge of 0.03 percent. As the day progressed, the index continued its upward trajectory, ultimately concluding the session in the positive territory. It is worth noting that the Nifty 50 approached a significant milestone, with its value closely hovering around the impressive mark of 18600.

During the analyzed timeframe, the Nifty index exhibited significant volatility, but its fluctuations were confined within a narrow range. The daily chart revealed a doji candle, indicating uncertainty and hesitation among market participants. As a result, it is expected that the index will continue to move sideways, lacking a clear direction in its trajectory.

Market experienced a decline in investor confidence due to a combination of factors. Firstly, the IT sector saw a significant selling pressure, which had a dampening effect on market sentiments. Additionally, foreign fund outflows and unfavorable trends in global equities further contributed to the downward pressure on the markets. As a result, investors were hesitant to make any significant moves, and the market experienced a decline.

On the sectorial front, Realty emerged as the top gainer with a notable increase of 1.19%. Within this sector, MACROTECH DEVELOPERS LIMITED experienced a significant gain of 3.08%, while OBEROI REALTY LIMITED recorded a gain of 2.43%. The next top gainer was the Auto sector, which exhibited a gain of 1.09%. Within this sector, TVS MOTOR COMPANY LIMITED witnessed a substantial increase of 3.23%, and TATA MOTORS LIMITED registered a gain of 1.87%. On the other hand, the IT sector faced the highest decline, with a decrease of 1.88%. Notably, within this sector, PERSISTENT SYSTEMS LIMITED experienced a substantial loss of 4.31%, COFORGE LIMITED recorded a decline of 3.84%, and MPHASIS LIMITED saw a decrease of 3.49%.

Bank Nifty: Up by 0.14%

Bank Nifty commenced the trading session on a positive note, experiencing a gain of 0.14 percent and concluding the day in the green, with a closing value of 44,164.55. Likewise, the BSE Sensex displayed a marginal increase of 0.01 percent, reaching a high of 62,792.88, and also closed in the green.

Although the market closing was relatively stagnant, there was significant buying activity in rate-sensitive sectors such as banking, automobile, and real estate. This was due to the anticipation of the upcoming RBI MPC meeting. Investors were optimistic and confident that the central bank would maintain the current interest rates, which would provide a period of stability in interest rates going forward. This mounting anticipation has sparked a renewed interest in these sectors, as investors seek to capitalize on potential gains. As the market continues to evolve, it will be interesting to see how these sectors perform and whether they will continue to attract investment.

Bank Nifty

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

The gainers included Kotak Bank with a 1.94% increase, Axis Bank with a 1.59% increase, AU Bank with a 0.28% increase, Bandhan Bank with a 0.15% increase and IndusInd Bank with a 0.15% increase. On the other hand, the biggest losers in the sector included Federal Bank with a 0.71% decline, ICICI Bank with a 0.40% decline, Punjab National Bank with a 0.29% decline, Bank of Baroda with a 0.19% decline, and State Bank of India with a 0.07% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

UltraTech Cement Ltd. witnessed a significant increase of 2.91% in its share price, surpassing its previous closing value of Rs 7,882.00. The stock’s latest trading price stands at Rs 8,111.60. Over a span of three years, the stock delivered a remarkable return of 103.69%, outperforming the Nifty 100 index, which recorded a return of 78.78%. Notably, a weekly stochastic crossover occurred during the week ending June 02, 2023, with an average price gain of 7.1% within seven weeks after this signal over the past decade. Additionally, the company displayed an annual revenue growth rate of 20.03%, surpassing its three-year Compound Annual Growth Rate (CAGR) of 13.8%.

Tech Mahindra Ltd. experienced a decline of -1.92% in its share price, marking a decrease from its previous closing value of Rs 1,109.35. The stock’s most recent trading price stood at Rs 1,088.00. Over a three-year period, the stock delivered a solid return of 91.32%, outperforming the Nifty 100 index, which recorded a return of 78.78%. Notably, a 5-day moving crossover signal emerged recently. Historically, following this signal, there has been an average price decline of -2.19% within seven days over the past five years. Moreover, the company exhibited an impressive annual revenue growth rate of 18.57%, surpassing its three-year Compound Annual Growth Rate (CAGR) of 12.41%. It is noteworthy that only 2.14% of trading sessions in the last 16 years experienced intraday declines exceeding 5%.

Buzz

Amidst a lackluster performance in domestic equities, the Indian rupee remained range-bound, concluding the session marginally higher by just 1 paisa at 82.62 (provisional) against the US dollar. The currency exhibited a consolidation phase within a narrow range during the trading day.

Market participants are exercising caution as the Indian rupee continues to trade within a tight range, with the upcoming monetary policy announcement by the RBI being a key factor. There is a widespread expectation that the central bank will maintain the repo rate at its current level of 6.5 percent, leading to a sense of vigilance among traders and investors.

The domestic unit initiated the trading session at 82.56 against the US dollar in the interbank foreign exchange market, and ultimately concluded at 82.62 (provisional), registering a marginal increase of 1 paisa compared to its previous close.

Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs) recorded a buy value of Rs. 8,963.44 Cr. and a sale value of Rs. 8,577.73 Cr., resulting in a net value of Rs. 385.71 Cr. On the other hand, Domestic Institutional Investors (DIIs) reported a buy value of Rs. 5,946.73 Cr. and a sale value of Rs. 6,435.75 Cr., leading to a net value of -Rs. 489.02 Cr.

Advance Decline Ratio

Today, the advance-decline ratio was 1.16, and the market breadth was positive. The volatility index India Vix increased by 2.17 percent to settle at 11.38 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1234
Decliners – 1062
52Wk High –  137
52Wk Low – 13
High Band Hitters – 90
Low Band Hitters – 39
200d SMA – 17860
50d SMA – 17952
20d SMA – 18394

Top Gainers and Losers Stocks

The top gainers were UltraTech Cement (+2.91%), Divi’s Laboratories (+2.23%), Kotak Bank (+1.94%), Grasim (+1.74%), and Tata Motors (+1.60%).

The top losers were Tech Mahindra (-1.92%), Infosys (-1.82%), TCS (-1.60%), Wipro (-1.04%), and ONGC (-1.00%).

Top Gainers and Losers Sector

The top gainers sectors were Realty (+1.19%), Auto (+1.09%), Pharma (+0.61%), Financial Services (+0.21%), and Oil & Gas (+0.01%).

The top losers sectors were IT (-1.88%), Consumer Durables (-0.31%), Media (-0.14%), Metal (-0.14%), and FMCG (-0.04%).

The Nifty Midcap 50 was down by 0.10 percent, while the Nifty Small Cap 50 was up by 0.44 percent on the day.

The Nifty Midcap 50 index currently closed at 9,628.15, while the Nifty Small Cap 50 index currently closed at 4,748.45.

SECTORS – NOTABLE ACTION
REALTY +1.19%
AUTO +1.09%
PHARMA +0.61%
IT -1.88%
CONSUMER DURABLES -0.31%
MEDIA -0.14%

Stocks Ban List

(SEBI) F&O ban list  (MANAPPURAM open at -110.50 and close at -109.90), (INDIACEM open at +217.75 and close at +220.90), and (IBULHSGFIN open at +114.25 and close at -112.90) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned MANAPPURAM, INDIACEM, and IBULHSGFIN, 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, ZEEL, DELTACORP and HINDCOPPER Face Possible Entry in Ban List.

Daily Pivots

As per the above pivots data, 18540 to 18650 is the Nifty 50 trading range.

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