Market Gives Up Gains in Last Hours

At the close, the Nifty 50 was at 17,076.50 down by 0.44%

March 23, 2023, the Nifty 50 index opened at a lower level and decreased by 0.44% throughout the trading day, with a closing value below 17100. This means that the overall market sentiment was negative, with more sellers than buyers in the market.

Equity markets experienced a U-shaped trade on Thursday, which means that the market initially opened on a positive note, dipped during mid-day, and then recovered towards the end of the trading session.

Investors were likely trying to balance the impact of two significant events – the US Federal Reserve’s interest rate decision and the weekly F&O (Futures and Options) expiry. The Federal Reserve’s decision to raise interest rates by 25 basis points was announced on Wednesday, which could have impacted investor sentiment.

However, the Fed also signaled that it may only hike rates one more time this calendar year, which could have been perceived as a positive sign by some investors.

On the other hand, US Treasury Secretary Janet Yellen’s statement that regulators are not planning to provide “blanket” deposit insurance to stabilize the US banking system without working with lawmakers, could have added some uncertainty to the market.

Bank Nifty: Down by 0.96%

Bank Nifty index tracks the performance of the banking sector in India, it opened in the red and decreased by 0.96% throughout the trading day, closing in the red at 39,616.90. This could indicate that investors were wary about the banking sector’s performance and outlook.

Similarly, the BSE Sensex is a benchmark index of the Bombay Stock Exchange that represents the performance of the top 30 companies listed on the exchange. It also opened in the red and decreased by 0.50% throughout the trading day, closing in the red at a low of 57,925.28.

Bank Nifty index opened with a gap down at 39,836 and faced volatility throughout the trading session. The index managed to recover from its initial losses and touched an intraday high of 40,202, which could have been seen as a positive sign by investors.

However, towards the end of the trading session, the index faced selling pressure, leading to a loss of all the gains made earlier in the day. The Bank Nifty index closed at 39,617, down 382 points from the previous day’s close.

Bank Nifty

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

The gainers included Bandhan Bank with a 0.31% increase. On the other hand, the biggest losers in the sector included Bank of Baroda with a 2.81% decline, Punjab Nantional Bank with a 2.09% decline, State Bank of India with a 1.83% decline, AU Bank with a 1.83% decline and Federal Bank with a 1.67% decline. These results suggest that some banking stocks not performed better for the day.

Buzzing

Nifty50 index, which represents the top 50 companies listed on the National Stock Exchange of India (NSE), faced resistance at the 17,200 level and was unable to sustain the gains made in the previous day. This occurred on March 23, which is the weekly expiry day for futures and options contracts in India.

The weakness in global counterparts, possibly due to the recent US Federal Reserve rate hike, also played a role in affecting market sentiment. A rate hike by the US Federal Reserve typically results in a strengthening of the US dollar, which can lead to outflows from emerging markets like India, causing their stock markets to decline.

It is worth noting that stock markets are complex and affected by multiple factors, such as global economic and political events, company performance, and investor sentiment.

Advance Decline Ratio

Today, the advance-decline ratio was 0.56, and the market breadth was negative. The volatility index India Vix decreased by 2.14 percent to settle at 14.49 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 800
Decliners – 1431
52Wk High –  21
52Wk Low – 114
High Band Hitters – 53
Low Band Hitters – 52
200d SMA – 17456
50d SMA – 17644
20d SMA – 17304

Top Gainers and Losers Stocks

The top gainers were Hindalco (+1.49%), Maruti (+1.29%), Nestle India (+1.01%), ONGC (+0.76%), and Tata Motors (+0.75%).

The top losers were SBIN (-1.83%), Bajaj Auto (-1.55%), Kotak Bank (-1.53%), HCL Technologies (-1.50%), and Asian Paint (-1.40%).

Top Gainers and Losers Sector

The top gainers sectors were FMCG (+0.35%), Pharma (+0.22%), Metal (+0.10%), Auto (+0.04%), and Consumer Durables (+0.01%).

The top losers sectors were Realty (-1.08%), IT (-0.77%), Financial Services (-0.65%), Oil & Gas (-0.13%) and Media (-0.07%).

The Nifty Midcap 50 was down by 0.61 percent, while the Nifty Small Cap 50 was down by 0.30 percent on the day.

The Nifty Midcap 50 index currently closed at 8,399.90, while the Nifty Small Cap 50 index currently closed at 4,152.10.

SECTORS – NOTABLE ACTION
FMCG +0.35%
PHARMA +0.22%
METAL +0.10%
REALTY -1.08%
IT -0.77%
FINANCIAL SERVICES -0.65%

Stocks Ban List

(SEBI) F&O ban list (IBULHSGFIN open at 100.10 and close at 98.95) and (BIOCON open at 203.70 and close at 207.00) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned IBULHSGFIN and BIOCON 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.

HAL, DELTACORP and PEL has the possiblities of entrance in the ban list.

GNFC has exited from ban list.

Daily Pivots

As per the above pivots data, 17010 to 17190 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Domestic Equity Surges as Global Markets Recover in Nifty50
Nifty50 Under Pressure! Falls Below Previous Week’s Low During Trading
Indian Market Remains Under Pressure: Nifty 50 Experiences Another Volatile Week

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