Market Loses Opening Gains, Closes Near Day’s Low in Volatile Session

At the close, the Nifty 50 was at 19,386.70 down by 0.29%

The day saw a robust market opening driven by positive global cues, and early hours extended these gains. However, a shift in sentiment occurred with widespread selling dominating the latter half, resulting in a close near the day’s low. This session’s volatility highlighted the challenge of sustaining initial gains amid fluctuating investor perceptions.

The NSE Nifty 50 initiated the day on a positive note but faced a decline of 0.29%, concluding in the red zone and slipping below the 19400 mark. This decline can be attributed to cautious investors who redirected their attention to the imminent release of the Reserve Bank of India’s (RBI) policy meeting minutes.

Diverging from global trends, the US market exhibited an upward trajectory due to declining US PMI figures, fostering expectations of an extended rate pause and subsequently calming US bond yields.

While positive sentiment was evident in the IT sector within the domestic market, other major sectors encountered reversals, potentially influenced by the prevailing global uncertainties. This dynamic underscores the intricate interplay between global events and their impact on India’s equity landscape.

Bank Nifty: Up by 0.04%

The Bank Nifty commenced the trading session on a positive note, displaying gains in the opening phase with an increase of 0.04 percent. The day’s trading concluded with the Bank Nifty maintaining its upward momentum, closing in the green at 44,496.20. Conversely, the BSE Sensex exhibited a decline of 0.28 percent during the day’s course and concluded in the red, reaching a low of 65,252.34.

This mixed performance highlights the inherent volatility within the market, where different sectors respond differently to varying market conditions. While the Bank Nifty sustained its positive trajectory, the BSE Sensex faced downward pressure, leading to its closing in the red zone.

In the sectorial performance, the Information Technology (IT) sector demonstrated a notable upswing, registering a significant gain of 0.61%. Among the standout performers in this sector, Coforge Ltd. showcased remarkable growth with a commendable increase of 9.40%, solidifying its position as a frontrunner. Mphasis Ltd. also contributed to the sector’s positive trajectory, posting a gain of 4.71%.

Conversely, the Pharmaceuticals (Pharma) sector faced a downturn, witnessing a decline of 0.58%. Within this sector, Divi’s Laboratories Ltd. encountered a setback with a decrease of -1.52%, reflecting the challenges faced. Similarly, Glenmark Pharmaceuticals Ltd. experienced a loss of -1.23%, further contributing to the sector’s diminished performance.

Foreign Institutional Investors (FII/FPI) displayed active engagement in the Indian markets, with a Buy Value of Rs. 12,992.74 crore and a Sale Value of Rs. 11,467.87 crore. This resulted in a Net Value of Rs. 1,524.87 crore.

Conversely, Domestic Institutional Investors (DII) demonstrated robust participation, reporting a Buy Value of Rs. 13,050.83 crore and a Sale Value of Rs. 7,254.22 crore. As a result, the Net Value stood at Rs. 5,796.61 crore.

Bank Nifty

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

The gainers included AU Bank with a 1.52% increase, IndusInd Bank with a 1.26% increase, Axis Bank with a 0.29% increase, ICICI Bank with a 0.20% increase, and State Bank of India with a 0.02% increase. On the other hand, the biggest losers in the sector included Punjab National Bank with a 0.95% decline, Bandhan Bank with a 0.86% decline, IDFC First Bank with a 0.81% decline, Federal Bank with a 0.78% decline, and Bank of Baroda with a 0.75% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Rupee’s Resilience and Implications for Trade

The Indian rupee showcased strength, reaching a three-week high against the US dollar. This resurgence can be attributed to the alleviation of pressure on Asian currencies due to a pullback in US Treasury yields.

The rupee’s ascent saw it briefly touch 82.3725 against the US dollar before concluding the session at 82.5750, a notable improvement from the previous session’s rate of 82.6850.

The recent increase in US yields during this period, driven by expectations of prolonged elevated rates by the Federal Reserve, has influenced the currency markets. The rupee’s recent rebound reflects its resilience in the face of these dynamics.

For importers, the rupee’s recovery over the past two sessions presents a strategic opportunity. Improved exchange rates can enhance cost-efficiency in procurement, potentially mitigating some of the challenges posed by volatile currency fluctuations.

Buzzing

Bharat Petroleum Corporation Ltd.’s shares displayed a positive movement, edging up by 1.93% from its previous closing value of Rs 344.80. The stock’s most recent traded price stands at Rs 351.45. Over a three-year period, the stock has shown a decline of -15.85%, contrasting with the Nifty 100 index which exhibited a robust return of 67.53%.

Notably, the company’s annual revenue growth of 35.99% has outperformed its 3-year Compound Annual Growth Rate (CAGR) of 18.13%, reflecting a notable upward trajectory in its financial performance.

Over the last 18 years, a mere 1.82% of trading sessions witnessed intraday declines exceeding 5%. This underscores the stock’s historical stability, indicating relatively infrequent significant declines in its trading value.

Reliance Industries Ltd. experienced a decline in its share price, with a decrease of -1.84% from its previous closing value of Rs 2,522.20. The most recent traded price for the stock is Rs 2,475.80. Over a three-year period, the stock exhibited a return of 20.35%, which, while positive, contrasts with the Nifty 100 index’s robust return of 67.53%.

Impressively, the company’s annual revenue growth of 24.43% has surpassed its 3-year Compound Annual Growth Rate (CAGR) of 13.22%, indicating a strong growth trajectory in its revenue-generation capabilities.

Over the course of the last 18 years, a mere 1.23% of trading sessions observed intraday gains exceeding 5%. This highlights the stock’s historical stability, with only infrequent instances of significant intraday gains.

Advance Decline Ratio

Today, the advance-decline ratio was 0.93, and the market breadth was negative. The volatility index India Vix decreased by 0.23 percent to settle at 11.70 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1121
Decliners – 1203
52Wk High –  143
52Wk Low – 12
High Band Hitters – 64
Low Band Hitters – 42
200d SMA – 18341
50d SMA – 19365
20d SMA – 19509

Top Gainers and Losers Stocks

The top gainers were BPCL (+1.93%), Asian Paint (+1.78%), IndusInd Bank (+1.26%), Infosys (+1.14%), and Britannia (+0.94%).

The top losers were Jio Financial (-4.99%), Reliance (-1.84%), Divi’s Laboratories (-1.52%), Power Grid (-1.32%), and ONGC (-1.31%).

Top Gainers and Losers Sector

The top gainers sectors were IT (+0.61%), FMCG (+0.29%), Realty (+0.20%), and Media (+0.18%).

The top losers sectors were Pharma (-0.58%), Oil & Gas (-0.56%), Consumer Durables (-0.49%), Metal (-0.34%), and Auto (-0.25%).

The Nifty Midcap 50 was up by 0.45 percent, while the Nifty Small Cap 50 was down by 0.32 percent on the day.

The Nifty Midcap 50 index currently closed at 11,131.05, while the Nifty Small Cap 50 index currently closed at 5,437.70.

SECTORS – NOTABLE ACTION
IT +0.61%
FMCG +0.29%
REALTY +0.20%
PHARMA -0.58%
OIL & GAS -0.56%
CONSUMER DURABLES -0.49%

Stocks Ban List

(SEBI) F&O ban list  (BHEL open at -111.50 and close at -107.65), (SUNTV open at +571.90 and close at +582.55), (MANAPPURAM open at -142.65 and close at -142.25), (INDIACEM open at +240.35 and close at -236.15), (HINDCOPPER open at +149.80 and close at -146.20), (METROPOLIS open at -1334.95 and close at -1313.50), (GNFC open at +562.50 and close at +565.00), (PNB open at +63.65 and close at -62.85), (DELTACORP open at -181.50 and close at -180.85), (ESCORTS open at -2902.30 and close at +2988.20), and (IBULHSGFIN open at +154.55 and close at +158.80) 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.

RBLBANK, RECLTD, GMRINFRA, CHAMBLFERT, CANBK, NMDC, GRANULES and BALRAMCHIN stocks has the possibilities of enterance in the ban list.

PNB, DELTACORP, ESCORTS, and IBULHSGFIN stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 19300 to 19540 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Bank Nifty Breaks Consolidation, Rises Above Support Line
Refining Persistence: Insights from Accomplished Experts
Nifty Struggles with Resistance Trend Line
Indian Equity Indices Rebound, Close Higher on Broad Sectoral Buying

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