Market Gains Marginally Amid Volatility & Positive Global Cues

NiftyTrader • August 28, 2023

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Index	Price	Change	% Chg
Nifty 50	19,306.05	+40.25	+0.21%
Nifty Bank	44,494.65	+263.20	+0.60%
BSE SENSEX	64,996.60	+110.09	+0.17%

At the close, the Nifty 50 was at 19,306.05 up by 0.21%

Market Volatility Persists the week began on a turbulent note, with markets experiencing considerable fluctuations. Despite an initial uptick, profit-taking in the final hours tempered gains, leaving investors cautiously optimistic.

Breaking the Losing Streak equity indices managed to break a two consecutive days of losses, closing higher. NSE Nifty 50 exhibited resilience, starting strong and ending with a 0.21 percent gain, closing above the 19,300 mark.

Global Factors Influence Local Markets positive global cues offered some respite as local shares ended in positive territory. However, the markets remained volatile due to mounting concerns about a potential interest rate hike by the US Federal Reserve in response to higher inflation. Concurrently, stagflation concerns in China and unpredictable domestic Foreign Institutional Investor (FII) flows continue to weigh on market sentiment.

Directionless Trading the market struggled for direction in an uninspiring session marked by risk aversion. Notably, Reliance Industries faced headwinds, acting as a major drag on the indices, while Jio Financial Services extended its downward trajectory ahead of the Reliance Industries Limited’s Annual General Meeting (AGM).

Bank Nifty: Up by 0.60%

Prominent Optimism Reflected in Bank Nifty Index, Backed by Consistent Buying Momentum.

Continuing its positive momentum, the Bank Nifty index demonstrated strong optimism, particularly at the lower range. With sustained buying interest, the index maintained its upward trajectory.

In a similar vein, the Bank Nifty opened in positive territory, recording a gain of 0.60 percent and ultimately closing in the green at 44,494.65. Correspondingly, the BSE Sensex also experienced a modest uptick of 0.17 percent, culminating in a green close at a notable high of 64,996.60.

In the sectorial landscape, the realty sector stood out with a robust increase of 0.94%. Notable contributors to this surge include Indiabulls Real Estate Ltd., demonstrating an impressive gain of 4.12%, followed closely by Godrej Properties Ltd., which marked a notable 2.24% increase.”

Conversely, the Information Technology (IT) sector experienced a decline, leading as the top loser with a 0.46% drop. Mphasis Ltd. encountered a notable loss of -2.81%, while Persistent Systems Ltd. registered a decline of -1.87% within this sector.

Foreign Institutional Investors (FII/FPI) engaged in trading activities with a Buy Value of Rs. 10,235.41 Cr. and a Sale Value of Rs. 11,628.66 Cr. Consequently, the Net Value stood at -Rs. 1,393.25 Cr., reflecting net selling activity by FII/FPI.

On the other hand, Domestic Institutional Investors (DII) showed a Buy Value of Rs. 7,711.28 Cr. and a Sale Value of Rs. 6,447.27 Cr., resulting in a positive Net Value of Rs. 1,264.01 Cr., indicating net buying by DII.

Bank Nifty

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

The gainers included Federal Bank with a 2.20% increase, Punjab National Bank with a 1.54% increase, HDFC Bank with a 1.06% increase, Kotak Bank with a 0.91% increase, and IndusInd Bank with a 0.60% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 0.34% decline, and AU Bank with a 0.08% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Rupee Holds Steady, Edges Up by 1 Paisa Against US Dollar Amid Mixed Factors

Displaying a consolidative trend, the rupee traded within a narrow range and concluded the day with a marginal gain of 1 paisa, closing at 82.63 against the US dollar. While the support extended by positive performances in domestic equities provided some uplift, this was countered by the ascent of the American currency and a rebound in crude oil prices.

Monday saw the Indian rupee making modest strides, with gains attributed to the positive movement in the domestic equity market. Nonetheless, the upward trajectory was hindered by the upward momentum of the US dollar and the resurgence of crude oil prices.

At the interbank foreign exchange, the domestic unit initiated trading at 82.58, ultimately settling at 82.63 against the American currency.

In parallel, the global oil benchmark, Brent crude, experienced a 0.37 percent increase, reaching $84.79 per barrel.

Buzzing

Power Grid Corporation of India Ltd. demonstrated impressive strength in its stock performance, surging by 2.77% from its previous closing price of Rs 242.00. The stock reached a last traded price of Rs 248.70. Over a 3-year period, the stock has generated remarkable returns of 77.0%, surpassing the S&P BSE Power index, which provided investors with a 149.36% return during the same time frame. Additionally, it outperformed Nifty 100’s return of 63.92%.

However, it’s worth noting that the company experienced a quarter-on-quarter (QoQ) revenue decline of 10.35%, marking the lowest figure in the past three years. This indicates the need for careful monitoring of the company’s financial performance.

In contrast, Reliance Industries Ltd. witnessed a -1.27% dip in its share price from the previous close of Rs 2,468.35, with the last traded price at Rs 2,436.95. Over the past 3 years, the stock delivered a return of 16.64%, while Nifty 100 showed a return of 63.92%.

An interesting technical indicator, the Weekly Moving Average Convergence Divergence (MACD) crossover, occurred in the week ending August 25, 2023, but it’s worth noting that historically, such crossovers have been associated with an average price decline of -4.6% within seven weeks. On the bright side, the company achieved an impressive annual revenue growth of 24.43%, outperforming its 3-year Compound Annual Growth Rate (CAGR) of 13.22%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.23, and the market breadth was positive. The volatility index India Vix increased by 2.60 percent to settle at 12.40 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1317
Decliners – 1075
52Wk High – 121
52Wk Low – 20
High Band Hitters – 110
Low Band Hitters – 40
200d SMA – 18352
50d SMA – 19387
20d SMA – 19473

Top Gainers and Losers Stocks

The top gainers were Power Grid (+2.77%), LT (+2.11%), Cipla (+1.95%), M&M (+1.83%), and BPCL (+1.53%).

The top losers were Jio Financial (-2.05%), Reliance (-1.27%), Adani Enterprises (-0.87%), Hindalco (-0.87%), and Nestle India (-0.82%).

Top Gainers and Losers Sector

The top gainers sectors were Realty (+0.94%), Pharma (+0.91%), Auto (+0.73%), Financial Services (+0.55%), and Media (+0.34%).

The top losers sectors were IT (-0.46%), FMCG (-0.23%), Oil & Gas (-0.12%).

The Nifty Midcap 50 was up by 0.47 percent, while the Nifty Small Cap 50 was up by 1.01 percent on the day.

The Nifty Midcap 50 index currently closed at 11,073.05, while the Nifty Small Cap 50 index currently closed at 5,489.55.

SECTORS – NOTABLE ACTION
REALTY +0.94%
PHARMA +0.91%
AUTO +0.73%
IT -0.46%
FMCG -0.23%
OIL & GAS -0.12%

Stocks Ban List

(SEBI) F&O ban list (ESCORTS open at +3069.95 and close at -3032.30), (SUNTV open at +606.90 and close at -602.40), (GMRINFRA open at -62.45 and close at -60.75), (RBLBANK open at +231.35 and close at +232.00), (HINDCOPPER open at +146.00 and close at +147.90), (MANAPPURAM open at -140.80 and close at +144.20), (INDIACEM open at -232.00 and close at +239.75), (BHEL open at -106.80 and close at +109.55) 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.

SAIL, HAL, ZEEL, RECLTD, BALRAMCHIN, CANBK, GRANULES, INDUSTOWER and NMDC stocks has the possibilities of enterance in the ban list.