Market Recovery Short-Lived Sectors Face Selling Pressure

At the close, the Nifty 50 was at 19,671.10 down by 0.71%

In the current trading session, the NSE Nifty 50 encountered renewed downward pressure, commencing with a lower opening and ultimately closing down by 0.71 percent. The index slipped below the 19,700 mark due to selling across various sectors, which was driven by weak global cues setting a negative tone for the day. Although the market briefly showed signs of morning recovery, it failed to sustain momentum, resulting in an extension of initial losses.

The Indian markets saw profit booking influenced by prevailing weak global sentiments and increasing tensions in the Middle East, leading to energy price instability. Brent prices surged to over $92.5 by day’s end, further heightening market apprehensions. On the other hand, US bond yields remained cautiously positioned as investors awaited the upcoming speech from the Federal Reserve chair.

Initial disappointments in Q2 earnings from the IT and financial sectors likely sparked concerns in the domestic markets. However, it’s important to note that these reactions are considered a spontaneous response. The overall outlook for the domestic market remains stable, supported by optimistic Q2 result forecasts and a favorable fiscal position.

Bank Nifty: Down by 1.17%

In today’s trading session, both the Bank Nifty and the BSE Sensex encountered substantial losses. The Bank Nifty opened in the red and experienced a decline of 1.17 percent, closing at 43,888.70. Similarly, the BSE Sensex exhibited a downward trajectory, posting a 0.83 percent decrease, concluding the day at 65,877.02.

On the sectorial front, the pharmaceutical sector witnessed a notable upswing, registering a significant gain of 0.78%. Notably, Cipla Ltd. stood out as a top performer, with an impressive 3.50% increase, while Dr. Reddy’s Laboratories Ltd. also demonstrated resilience with a gain of 2.18%.

Conversely, the financial services sector faced setbacks, marking a decline of 1.28%. Bajaj Finance Ltd. grappled with a noteworthy loss of -2.95%, while ICICI Prudential Life Insurance Company Ltd. saw a decrease of -2.27%.

Foreign institutional investors (FIIs/FPIs) engaged in stock purchases with a total value of Rs. 9,761.24 crore, while their selling activity amounted to Rs. 11,593.08 crore. This resulted in a net value of -Rs. 1,831.84 crore, indicating net selling by foreign institutional investors.

On the other hand, domestic institutional investors (DIIs) were active in buying stocks valued at Rs. 8,166.53 crore and selling stocks valued at Rs. 6,697.03 crore. This led to a positive net value of Rs. 1,469.50 crore, signifying net buying by domestic institutional investors.

Bank Nifty

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

There are no gainer in the Bank Nifty today. On the other hand, the biggest losers in the sector included Punjab National Bank with a 2.18% decline, Bank of Baroda with a 1.50% decline, HDFC Bank with a 1.44% decline, Axis Bank with a 1.42% decline, and Federal Bank with a 1.15% decline. These results suggest that some banking stocks not performed better for the day.

Buzz

In the intricate tapestry of global finance, the Indian rupee faced a nuanced day of trading against the US dollar. On Wednesday, the rupee experienced a marginal dip, settling 2 paise lower at 83.27 (pro) in comparison to the US dollar. This dip was influenced significantly by the negative cues emanating from the domestic equity markets, which were grappling with the impact of soaring crude oil prices on a global scale.

Despite these challenges, the rupee found support in the form of fresh foreign capital inflows and the weakening of the greenback against major currencies internationally. These factors acted as a cushion, limiting the rupee’s loss against the dollar.

At the interbank foreign exchange, the domestic unit commenced trading at 83.24 against the dollar. Throughout the trading day, it navigated within a narrow range of 83.23 to 83.27 before ultimately settling at 83.27 (pro) against the greenback. This minor setback represented a loss of 2 paise over its previous close, highlighting the sensitivity of the currency market to global economic fluctuations.

Meanwhile, in the broader global context, Brent crude futures, the benchmark for global oil prices, surged significantly by 3.05%, reaching $89.30 per barrel. This spike in crude oil prices added to the complexity of the market dynamics, contributing to the cautious approach observed by investors and traders in the foreign exchange arena.

Buzzing

Cipla Ltd. witnessed a notable increase in its share price, rising by 3.50% from its previous closing price of Rs 1,173.50, reaching Rs 1,214.55. The company reported impressive total income growth, both quarterly and yearly, with a total income of Rs 6,465.18 crore for the quarter ending June 30, 2023. This signifies a substantial increase of 10.07% quarter-on-quarter (QoQ) and an impressive 18.01% year-on-year (YoY) growth.

Moreover, a 14-day moving crossover indicator emerged recently, which historically resulted in an average price gain of 2.34% within seven days. Remarkably, in the last 18 years, only 0.91% of trading sessions recorded intraday gains higher than 5%.

On the flip side, Bajaj Finance Ltd. experienced a -2.95% decline in its share price from the previous closing of Rs 8,093.00, closing at Rs 7,854.00. The company showed a 5-day moving crossover, which historically yielded an average price gain of 3.66% within seven days. Notably, the company’s annual revenue growth, reaching 30.86%, outpaced its 3-year Compound Annual Growth Rate (CAGR) of 16.03%. It’s worth mentioning that Bajaj Finance allocated 30.34% of its operating revenues to interest expenses and 12.22% to employee costs for the year ending March 31, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 0.50, and the market breadth was negative. The volatility index India Vix increased by 2.82 percent to settle at 11.00 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 806
Decliners – 1601
52Wk High –  127
52Wk Low – 18
High Band Hitters – 85
Low Band Hitters – 61
200d SMA – 18580
50d SMA – 19623
20d SMA – 19674

Top Gainers and Losers Stocks

The top gainers were Cipla (+3.50%), Dr. Reddy (+2.18%), Tata Motors (+1.76%), Sun Pharmaceutical (+1.44%), and SBI Life  (+0.49%).

The top losers were Bajaj Finance (-2.95%), Bajaj Finserv (-1.85%), NTPC (-1.46%), HDFC Bank (-1.44%), and Reliance (-1.44%).

Top Gainers and Losers Sector

The top gainers sector were Pharma (+0.78%), Media (+0.27%), Auto (+0.08%).

The top losers sector were Financial Services (+1.28%), Consumer Durables (+0.93%), Oil & Gas (+0.85%), IT (+0.59%), and Metal (-0.56%).

SECTORS – NOTABLE ACTION
PHARMA +0.78%
MEDIA +0.27%
AUTO +0.08%
FINANCIAL SERVICES -1.28%
CONSUMER DURABLES -0.93%
OIL & GAS -0.85%

Stocks Ban List

(SEBI) F&O ban list (BALRAMCHIN open at -422.35 and close at +423.75), (GNFC open at -655.95 and close at +668.15), (MCX open at -2155.00 and close at -2193.95), (DELTACORP open at +131.00 and close at -129.65), (SAIL open at -89.60 and close at -87.75), (INDIACEM open at +223.00 and close at +221.05), (IBULHSGFIN open at +174.00 and close at -172.30), (BHEL open at +132.75 and close at -129.20), (HINDCOPPER open at -159.50 and close at -154.75), and (MANAPPURAM open at -143.80 and close at -142.10) 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.

NMDC, METROPOLIS, CHAMBLFERT, L&TFH, RBLBANK and ESCORTS stock has the possibilities of enterance in the ban list.

BHEL, HINDCOPPER, and MANAPPURAM stock has the possiblities of exit from ban list.

Daily Pivots

As per the above pivots data, 19590 to 19800 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Market Soars on Positive Global Cues and Sector-Wide Buying
Nifty’s Flat Opening and Narrow Consolidation A Marginal Red Finish
Selling Pressure Hits Market as IT Giants See Lower Demand

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