Market Rollercoaster From Negative to Near High in One Day

At the close, the Nifty 50 was at 19,716.45 up by 0.26%

In a day characterized by market volatility, equity indices ultimately closed on a positive note. This turbulent journey was primarily shaped by mixed global signals, creating an intriguing trading environment. Initially, domestic indices began the day with a negative outlook, experiencing early losses. However, as the afternoon session unfolded, the market demonstrated remarkable resilience by recovering all earlier losses and concluding near the day’s peak.

Nifty’s Unexpected Strength Today, the NSE Nifty 50 started the day on a weak note but defied expectations by finishing in positive territory, posting a gain of 0.26 percent. Significantly, the Nifty managed to maintain its position above the crucial 19,700 level, signaling a bullish sentiment.

Balancing Global and Domestic Influences the market’s upward trajectory in the latter part of the trading day was driven by favorable openings in European markets. Despite concerns about global interest rates and elevated oil prices, the domestic market found equilibrium thanks to promising economic growth prospects and the potential for robust earnings. These factors underscore the premium valuations observed in certain segments.

Sectoral Strength and Persistent Challenges In this dynamic landscape, the FMCG and Pharma sectors exhibited strong performance, as investors adopted a defensive strategy to navigate global uncertainties. However, the continuous outflows of foreign capital and the upward movement of US bond yields are expected to cast a shadow on broader indices in the near future.

Bank Nifty: Down by 0.08%

In today’s market performance, a notable divergence unfolded between the Bank Nifty and the BSE Sensex. The Bank Nifty initiated the day on a bearish note, experiencing a slight dip of 0.08 percent, ultimately concluding in negative territory at 44,588.30. In contrast, the BSE Sensex exhibited a more optimistic outlook, registering a gain of 0.26 percent and closing impressively at 66,118.69.

Despite an initial decline, the Bank NIFTY showcased commendable resilience by defending the crucial support level at 44,200, coinciding notably with the ascending trendline support. It’s worth highlighting that the index is currently trading below its 20-day moving average (20DMA) positioned at 45,000. A decisive breach above this pivotal level could potentially trigger significant short-covering, setting the stage for a more bullish scenario for the Bank NIFTY.

Regarding sectoral performance today, the Pharmaceutical sector notably stood out, posting an impressive gain of 1.19%. Within this sector, Granules India Ltd. emerged as a top performer, securing a notable gain of 3.95%, while Aurobindo Pharma Ltd. also contributed to the sector’s success, recording a gain of 2.69%.

On the contrary, the Financial Services sector encountered headwinds, emerging as the top loser with a decline of 0.13%. Notable constituents within this sector, such as ICICI Lombard General Insurance Company Ltd. and State Bank Of India, both recorded losses, with each experiencing a decrease of -0.74%.

In the realm of Indian finance, a snapshot of recent institutional investor activity unveils noteworthy trends. Foreign Institutional Investors (FII/FPI) engaged in transactions with a buy value of Rs. 9,575.17 crores and a sale value of Rs. 9,929.52 crores, resulting in a net outflow of Rs. -354.35 crores.

Conversely, Domestic Institutional Investors (DII) presented a different scenario, with buy transactions totaling Rs. 8,419.68 crores and sale transactions amounting to Rs. 8,033.40 crores, translating into a net inflow of Rs. 386.28 crores.

Bank Nifty

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

The gainers included Punjab National Bank with a 2.46% increase, IDFC First Bank with a 2.15% increase, Federal Bank with a 1.79% increase, Bandhan Bank with a 1.74% increase, and IndusInd Bank with a 1.12% increase. On the other hand, the biggest losers in the sector included State Bank of India with a 0.74% decline, ICICI Bank with a 0.71% decline, AU Bank with a 0.67% decline, and HDFC Bank with a 0.66% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Rupee Shows Resilience Amidst Challenges after experiencing two consecutive days of steep losses, the Indian rupee staged a modest recovery, closing 6 paise higher against the US dollar at 83.22 (pro) on Wednesday, driven by positive cues from the domestic equity markets.

External Pressures and Internal Factors despite this recovery, the rupee remained under pressure due to selling by foreign equity investors, who sought refuge in the US dollar amidst elevated levels of the American currency and the persistent surge in crude oil prices. These external factors continued to influence the local unit’s performance.

Intraday Movement and Settlement in the interbank foreign exchange market, the rupee initiated trading at 83.23 against the greenback and maintained a relatively narrow trading range, fluctuating between 83.18 and 83.24. Ultimately, it settled at 83.22 (pro), marking a marginal gain of 6 paise from its previous close.

Recent Losses and Dollar Strength Over the past two sessions, the rupee had lost 34 paise. On Tuesday, it concluded 15 paise lower at 83.28 against the dollar, following a decline of 19 paise the previous day. This downward trajectory was primarily attributed to a strengthening US dollar, driven by a record surge in US Treasury yields and indications of a prolonged interest rate hike cycle by Federal Reserve policymakers.

Buzzing

Larsen & Toubro Ltd. (L&T) exhibited a strong performance in today’s trading session, with its share price marking an upward move of 2.01% from its previous closing price of Rs 2,912.55. As of the most recent trading data, L&T’s stock was valued at Rs 2,971.00. Notably, a 5-day moving average crossover occurred yesterday, a signal often followed by a bullish sentiment. Historical data indicates an average price gain of 2.7% within 7 days of such a signal over the past 5 years. Additionally, L&T’s impressive annual revenue growth of 17.31% has outperformed its 3-year CAGR of 7.93%. In the last 18 years, only a mere 1.37% of trading sessions recorded intraday gains exceeding 5%.

Contrastingly, Titan Company Ltd. saw a slight decline in its share price, with a decrease of -1.38% from its previous closing price of Rs 3,262.60, bringing it to a last traded price of Rs 3,217.50. Despite this, Titan has showcased remarkable annual revenue growth of 40.82%, surpassing its 3-year CAGR of 24.19%. The company also delivered a robust Return on Equity (ROE) of 27.42% in the year ending March 31, 2023, outperforming its 5-year average of 22.47%. In terms of intraday declines, only 2.16% of trading sessions in the last 18 years witnessed declines greater than 5%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.26, and the market breadth was positive. The volatility index India Vix increased by 3.57 percent to settle at 11.59 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1323
Decliners – 1051
52Wk High –  75
52Wk Low – 22
High Band Hitters – 71
Low Band Hitters – 24
200d SMA – 18488
50d SMA – 19634
20d SMA – 19758

Top Gainers and Losers Stocks

The top gainers were Larsen & Toubro (+2.01%), Coal India (+1.81%), ITC (+1.56%), Cipla (+1.41%), and LTIM  (+1.33%).

The top losers were Titan (-1.38%), Grasim (-1.31%), Hero MotoCorp (-0.90%), SBIN (-0.74%), and ICICI Bank (-0.71%).

Top Gainers and Losers Sector

The top gainers sector were Pharma (+1.19%), FMCG (+0.80%), Realty (+0.73%), IT (+0.38%), Auto (+0.03%).

The top losers were Financial Services (-0.13%), and Consumer Durables (-0.02%).

SECTORS – NOTABLE ACTION
PHARMA +1.19%
FMCG +0.80%
REALTY +0.73%
FINANCIAL SERVICES -0.13%
CONSUMER DURABLES -0.02%

Stocks Ban List

(SEBI) F&O ban list  (DELTACORP open at -139.30 and close at +140.95), (INDIACEM open at +234.70 and close at +232.55), (BALRAMCHIN open at -430.45 and close at +445.45), (HINDCOPPER open at -155.45 and close at +159.30), (IBULHSGFIN open at -185.25 and close at +188.15), and (CANBK open at -370.00 and close at +374.25) 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, RBLBANK, PNB, INDUSTOWER, NATIONALUM, SAIL, ZEEL, BHEL, and MANAPPURAM stocks has the possibilities of enterance in the ban list.

HINDCOPPER, IBULHSGFIN, and CANBK stocks has the possibilities of exit from ban list.

Daily Pivots

As per the above pivots data, 19590 to 19790 is the Nifty 50 trading range.

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