Market Inches Higher on US Debt-Ceiling Hopes

At the close, the Nifty 50 was at 18,314.40 up by 0.61%

Today, the NSE Nifty 50 commenced with a strong opening, registering a 0.61% surge throughout the day and ultimately concluding in positive territory, surpassing the 18300 mark.

Amidst the anticipation of advancements in US debt ceiling negotiations, the domestic market made a modest upward movement. Notwithstanding a lackluster performance in the fourth quarter, information technology (IT) stocks witnessed a resurgence, driven by attractive bargain prospects and the release of pent-up demand. Investors maintain a vigilant stance as they await the publication of US Federal Open Market Committee (FOMC) minutes scheduled for Wednesday, as these minutes might provide valuable insights regarding a potential pause in rate hikes.

The metal sector emerged as the leading gainer, showcasing a substantial growth of 3.19%. Within this sector, ADANI ENTERPRISES LIMITED experienced an impressive gain of 19.55%, while VEDANTA LIMITED and HINDUSTAN COPPER LIMITED recorded gains of 1.97% and 1.82% respectively. On the other hand, the Financial Services sector endured a decline of 0.18%, emerging as the top loser. Notable losses were observed in INDIAN ENERGY EXCHANGE LIMITED, which experienced a decrease of 2.01%, followed by SHRIRAM FINANCE LIMITED with a decline of 1.59%, and HDFC ASSET MANAGEMENT COMPANY LIMITED with a loss of 0.97%.

Bank Nifty: Down by 0.19%

The Bank Nifty commenced its trading session on a bearish note, witnessing a 0.19% decline and ultimately concluding in the negative territory at 43,885.10. Likewise, the BSE Sensex showcased a 0.38% ascent and elegantly wrapped up the day in the green, reaching a significant pinnacle of 61,963.68.

The metal index witnessed a significant surge of 3%, showcasing robust performance. In parallel, the information technology index demonstrated a notable growth of 2%. Furthermore, the capital goods, oil & gas, and healthcare indices all exhibited a commendable increase of 1% each, reflecting positive momentum within these sectors.

The Bank Nifty, residing in close proximity to its historical peak, has exhibited a consolidation phase. Impressively, it has successfully maintained its position above significant moving averages, signifying a robust trend. Nevertheless, the Relative Strength Index (RSI) presently demonstrates a bearish crossover, implying a diminished momentum.

Taking into account the technical analysis, following a reversal observed on the previous Friday, the market sustained its upward trajectory, resulting in the formation of a bullish candle on the daily charts. This formation is widely regarded as a positive signal. Analysts suggest that the index has concluded one phase of a pullback rally and is presently trading in the vicinity of a significant retracement resistance zone.

FII/FPI Data as of 22/05/2023 reveals a Buy Value of 6,956.61 (Rs. Cr.) and a Sale Value of 6,033.72 (Rs. Cr.), resulting in a Net Value of 922.89 (Rs. Cr.). Similarly, DII Data for the same date showcases a Buy Value of 5,486.82 (Rs. Cr.), a Sale Value of 4,882.25 (Rs. Cr.), and a Net Value of 604.57 (Rs. Cr.).

Bank Nifty

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

The gainers included Punjab National Bank with a 2.64% increase, Bandhan Bank with a 1.39% increase, AU Bank with a 0.34% increase, and State Bank of India with a 0.24% increase. On the other hand, the biggest losers in the sector included Axis Bank with a 0.78% decline, ICICI Bank with a 0.61% decline, Bank of Baroda with a 0.60% decline, IDFC First Bank with a 0.60% decline, and HDFC Bank with a 0.51% decline. These results suggest that some banking stocks not performed better for the day.

Buzzing

Adani Enterprises Ltd. witnessed a remarkable surge in its share price, soaring by 18.07% from its previous closing value of Rs 1,956.05. The stock of Adani Enterprises Ltd. concluded its latest trading session at an impressive price of 2,309.55. Over the span of three years, the stock delivered an exceptional return of 1316.4%, surpassing the 94.2% return of the Nifty 100 index. Furthermore, the company displayed a phenomenal annual revenue growth of 96.18%, outperforming its three-year compound annual growth rate (CAGR) of 45.79%.

Adani Ports & Special Economic Zone Ltd. experienced a notable upward movement in its share price, surging by 6.23% from its previous closing value of Rs 688.10. The stock of Adani Ports & Special Economic Zone Ltd. concluded its latest trading session at a commendable price of 730.95. Over a three-year timeframe, the stock delivered a remarkable return of 121.54%, outperforming the 96.72% return offered by the Nifty Infrastructure index. Additionally, the stock exhibited a three-year return of 121.54%, surpassing the 94.2% return provided by the Nifty 100 index.

Buzz

The Indian Rupee exhibited a weakened performance, currently hovering at 82.84, witnessing a slight depreciation of 0.10 rupees. The decision by the Reserve Bank of India (RBI) to eliminate the highest denomination currency note of 2000, coupled with apprehensions surrounding the ongoing debt-ceiling discussions in the United States, has exerted pressure on the rupee. Unless it manages to surpass the 82.50 threshold, the rupee is anticipated to persist in its weakened state. The projected trading range for the rupee stands between 82.70 and 83.05.

Adani Enterprises took the lead with a remarkable surge of 17%, capturing the spotlight as Adani Group stocks experienced substantial demand on Monday. Investors found a renewed sense of optimism following the release of the expert committee’s report appointed by the Supreme Court, which stated the absence of any regulatory lapses pertaining to the Adani Group-Hindenburg case. Additionally, the Securities and Exchange Board of India (Sebi) investigation into potential infringements regarding monetary inflows from offshore entities into the conglomerate yielded no conclusive findings, leaving the regulatory body empty-handed.

Advance Decline Ratio

Today, the advance-decline ratio was 0.99, and the market breadth was negative. The volatility index India Vix increased by 2.17 percent to settle at 12.57 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1161
Decliners – 1174
52Wk High –  72
52Wk Low – 32
High Band Hitters – 67
Low Band Hitters – 77
200d SMA – 17794
50d SMA – 17680
20d SMA – 18142

Top Gainers and Losers Stocks

The top gainers were Adani Enterprises (+19.55%), Adani Ports (+6.41%), Divi’s Laboratories (+5.06%), Apollo Hospitals (+3.55%), and Tech Mahindra (+3.25%).

The top losers were Hero MotoCorp (-0.81%), Axis Bank (-0.78%), Nestle India (-0.71%), Eicher Motors (-0.70%), and Bharti Airtel (-0.61%).

Top Gainers and Losers Sector

The top gainers sectors were Metal (+3.19%), IT (+2.49%), Pharma (+0.99%), Consumer Durables (+0.96%), and Oil & Gas (+0.78%).

The top losers sectors were Financial Services (-0.18%), and Media (-0.09%).

The Nifty Midcap 50 was up by 0.65 percent, while the Nifty Small Cap 50 was up by 0.53 percent on the day.

The Nifty Midcap 50 index currently closed at 9,235.90, while the Nifty Small Cap 50 index currently closed at 4,483.90.

SECTORS – NOTABLE ACTION
METAL +3.19%
IT +2.49%
PHARMA +0.99%
FINANCIAL SERVICES -0.18%
MEDIA -0.09%

Stocks Ban List

(SEBI) F&O ban list  (L&TFH open at +99.90 and close at +99.75), (MANAPPURAM open at -110.30 and close at -109.25), (ABFRL open at -189.00 and close at -189.85), (BALRAMCHIN open at +388.90 and close at +393.65), (GNFC open at -591.80 and close at +600.15), and (DELTACORP open at -219.30 and close at +222.20) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned L&TFH, MANAPPURAM, ABFRL, BALRAMCHIN, GNFC, and DELTACORP 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 IBULHSGFIN, BHEL, RBLBANK, and CANBK may be at risk of being added to the ban list.

ABFRL, BALRAMCHIN, GNFC, and DELTACORP has the possibilites of exited from ban list.

Daily Pivots

As per the above pivots data, 18210 to 18380 is the Nifty 50 trading range.

Read previous -Daily Insights- here
INCOME TAX SAVING Senior Citizen Saving Scheme(SCSS)
Indices Surge on Optimism of US Debt Ceiling Resolution
Nifty Succumbs to Selling Pressure, Erodes Early Gains

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