Market Opens Flat, Experiences Selling Pressure

At the close, the Nifty 50 was at 18,286.50 down by 0.61%

Today’s trading session for NSE Nifty 50 commenced on a positive note with an uptrend in the opening hours, but unfortunately, the market could not sustain the momentum. The index underwent a sharp decline of 0.61 percent, culminating in a close in the red zone, and finishing below the crucial mark of 18300.

The Nifty finds itself hovering towards the lower end of its upward channel, a trend that has persisted for a month and a half. The daily momentum indicator has produced a sell signal, marked by a negative crossover. However, as long as the price remains above the previous swing low of 18194, the pattern of higher tops and higher bottoms remains intact, and our short-term position will be reassessed if and when the Nifty breaches this key level. Going forward, the market is likely to witness stock-specific movements, and caution is advised.

Within the sectors, the Auto index witnessed a decline of 1 percent, while the healthcare, infrastructure, banking, and metal indices experienced a slight dip ranging from 0.3 to 0.4 percent. On the other hand, the PSU Bank index demonstrated a positive momentum, rising by 0.7 percent.

With investors exercising caution, profit-booking dominated the market, causing all sectoral indices, except for the IT Index, to finish in the red. Today’s profit-booking activity may signal that the crucial support level to monitor for the Nifty is at 18,211. A break below this level could trigger a significant selling pressure, leading the index towards the 17,383 mark.

Bank Nifty: Down by 0.38%

The Bank Nifty, mirroring its initial positive start, embarked on the trading session with an optimistic tone. However, as the day progressed, it experienced a decline of 0.38 percent, eventually settling in the red zone at a closing value of 43,903.70. Likewise, the BSE Sensex encountered a similar trend, succumbing to a decrease of 0.66 percent, culminating in a close in the negative territory, reaching a low of 61,932.47.

On the sectorial front, the IT sector emerged as the top gainer, with an overall increase of 0.18%. Within this sector, COFORGE LIMITED registered a gain of 1.88%, MPHASIS LIMITED observed a gain of 0.59%, and PERSISTENT SYSTEMS LIMITED experienced a gain of 0.48%. On the other hand, the Media sector faced a decline of 1.38%. Notably, within this sector, DISH TV INDIA LIMITED recorded a loss of 4.23%, PVR INOX LIMITED faced a loss of 2.17%, and NETWORK18 MEDIA & INVESTMENTS LIMITED experienced a loss of 1.90%.

On 16/05/2023, Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) made purchases worth Rs. 7,783.16 crore and sales worth Rs. 6,376.30 crore, resulting in a net value of Rs. 1,406.86 crore. As for Domestic Institutional Investors (DII), their activity on the same date showed purchases of Rs. 6,138.61 crore and sales of Rs. 7,024.78 crore, leading to a net value of -Rs. 886.17 crore.

Bank Nifty

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

The gainers included Bank of Baroda with a 1.82% increase, AU Bank with a 1.68% increase, IDFC First Bank with a 0.97% increase, State Bank of India with a 0.70% increase, and IndusInd Bank with a 0.04% increase. On the other hand, the biggest losers in the sector included Kotak Bank with a 1.67% decline, HDFC Bank with a 0.65% decline, Federal Bank with a 0.31% decline, ICICI Bank with a 0.15% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

Bharat Petroleum Corporation Ltd. witnessed a rise of 1.48% in its share price from the previous closing value of Rs 357.00. The stock’s latest traded price stands at 362.30. Over a span of 3 years, the stock yielded a return of 12.19%, while the Nifty 100 recorded a return of 95.07%. Yesterday, a 20-day moving crossover was observed, indicating a potential trend change. In the last 5 years, this signal has been accompanied by an average price decline of -3.13% within 7 days. Aligning with the global trend, many OMCs (Oil Marketing Companies) are embracing green energy initiatives, and Bharat Petroleum Corporation Ltd. is also poised to follow suit in its pursuit of becoming a net-zero emitter. However, this transition implies that capital expenditure is expected to remain elevated in the upcoming years.

Coal India Ltd. experienced an increase of 1.43% in its share price from the previous closing value of Rs 237.70. The stock’s latest traded price stands at 241.10. Over a span of 3 years, the stock delivered a return of 83.41%, while the Nifty 100 recorded a return of 95.07%. Yesterday, a 5-day moving crossover occurred, suggesting a potential shift in the stock’s trend. Historical data reveals that within 7 days of this signal, the stock has, on average, gained 2.95%. Notably, the company’s annual revenue growth of 27.45% has outperformed its 3-year compound annual growth rate (CAGR) of 12.19%. Furthermore, in the past 12 years, only 1.03% of trading sessions witnessed intraday gains surpassing 5%.

Buzz

In early trade on Tuesday, the rupee made gains against the US dollar, rising 11 paise to 82.20, buoyed by steady foreign fund inflows. Forex traders noted that the weakness in domestic equities and the strength of the American currency in the overseas market dampened investor sentiment. The domestic unit opened at 82.22 against the dollar at the interbank foreign exchange and then climbed to 82.20, representing an increase of 11 paise over its previous close. On Monday, the rupee finished at 82.31 against the US currency. At the same time, the dollar index declined 0.06 percent to 102.37.

Advance Decline Ratio

Today, the advance-decline ratio was 0.93, and the market breadth was negative. The volatility index India Vix increased by 0.91 percent to settle at 13.29 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1095
Decliners – 1172
52Wk High –  90
52Wk Low – 12
High Band Hitters – 59
Low Band Hitters – 29
200d SMA – 17762
50d SMA – 17617
20d SMA – 18027

Top Gainers and Losers Stocks

The top gainers were BPCL (+1.68%), Coal India (+1.39%), ONGC (+1.21%), Bajaj Finance (+0.98%), and NTPC (+0.88%).

The top losers were Kotak Bank (-1.67%), Tata Motors (-1.63%), M&M (-1.61%), Apollo Hospitals (-1.52%), and Maruti (-1.44%).

Top Gainers and Losers Sector

The top gainers sectors were IT (+0.18%), and Consumer Durables (+0.02%).

The top losers sectors were Media (-1.38%), Auto (-0.93%), Financial Services (-0.74%), Metal (-0.32%), and Pharma (-0.26%).

The Nifty Midcap 50 was up by 0.33 percent, while the Nifty Small Cap 50 was down by 0.17 percent on the day.

The Nifty Midcap 50 index currently closed at 9,269.70, while the Nifty Small Cap 50 index currently closed at 4,489.05.

SECTORS – NOTABLE ACTION
IT +0.18%
CONSUMER DURABLES +0.02%
MEDIA -1.38%
AUTO -0.93%
FINANCIAL SERVICES -0.74%

Stocks Ban List

(SEBI) F&O ban list  (GNFC open at +639.20 and close at +648.10), (DELTACORP open at +224.95 and close at +227.00), (PNB open at +49.30 and close at +49.00), and (BHEL open at -80.60 and close at +81.60), are not currently on the stock exchange.

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

BHEL has the possibilites of exit from ban list.

Daily Pivots

As per the above pivots data, 18220 to 18400 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Indian Equity Benchmarks Reach 5-Month High, Extend Winning Streak
Flat Ending to Volatile Session in Markets
Nifty50 Resilient, Overcomes Selling Pressure

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