Markets Approach Record High Amid Mixed Global Cues

At the close, the Nifty 50 was at 18,633.85 up by 0.19%

NSE Nifty 50 commenced the trading session on a bullish note, opening at an elevated level and experiencing a positive surge of 0.19 percent throughout the day. Ultimately, the index concluded the day in a favorable position, denoted by the term “closed in green,” with the Nifty surpassing the significant milestone of 18600.

The domestic market has continued its upward trajectory, driven by encouraging Q4 results that have highlighted an improvement in demand. Furthermore, the anticipation of a normal monsoon season and a decline in international commodity prices have created a favorable backdrop for an enhancement in the margin profile. The underlying trend remains robust, supported by ample liquidity, which further bolsters market sentiment.

In simpler terms, the domestic market is doing well due to increased demand and favorable external factors such as a normal monsoon season and lower commodity prices. This positive trend is expected to continue due to strong liquidity in the market.

On the sectorial front, Media emerged as the top gainer, with a notable increase of 0.68%. Within this sector, New Delhi Television Ltd. recorded a substantial gain of 4.99%, TV18 Broadcast Ltd. witnessed an increase of 1.43%, and Zee Entertainment Enterprises Ltd. observed a rise of 1.30%. Conversely, Metal stood out as the top loser, experiencing a decline of 0.91%. Noteworthy losses were observed within this sector, including Jindal Stainless Ltd., which suffered a decrease of 3.11%, National Aluminium Company Ltd., which recorded a decline of 1.86%, and Welspun Corp Ltd., which witnessed a loss of 1.79%.

Bank Nifty: Up by 0.28%

Bank Nifty commenced the trading session with a positive momentum, as it opened in a favorable position denoted by the phrase “in green,” and experienced a notable upswing of 0.28 percent. Eventually, the index concluded the day in a similarly optimistic stance, once again closing in green, with a final value of 44,436.35. Likewise, the BSE Sensex exhibited a positive trajectory, with a growth of 0.20 percent, and achieved a closing value at a significant peak of 62,969.13, further affirming its position in the green zone.

Due to the closure of the US markets on May 30th, local stocks were left without any guidance from their performance. As a result, investors adopted a stance of cautious optimism, carefully selecting banking and IT stocks to purchase. This discerning approach demonstrated their careful consideration of the market. However, the upward momentum was hindered by the weakness observed in the metals and oil & gas sectors.

Market participants are eagerly anticipating the outcome of the US debt agreement deal scheduled for Wednesday, as it holds the potential to shape the market direction in the near to medium term. This agreement has the potential to significantly impact the market, and investors are keeping a close eye on the developments. As the market continues to evolve, it is important for investors to remain vigilant and informed in order to make the best decisions for their portfolios.

As of 30/05/2023, the Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) engaged in trading activities with a buy value of 9,789.47 (Rs. Cr.) and a corresponding sale value of 7,703.85 (Rs. Cr.). The resulting net value stood at 2,085.62 (Rs. Cr.). On the other hand, the Domestic Institutional Investors (DII) also participated in trading on the same date, with a buy value of 5,937.03 (Rs. Cr.) and a sale value of 6,375.96 (Rs. Cr.). Consequently, the net value for DII transactions amounted to -438.93 (Rs. Cr.).

Bank Nifty

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

The gainers included IDFC First Bank with a 2.00% increase, Punjab National Bank with a 1.28% increase, Bandhan Bank with a 1.08% increase, Kotak Bank with a 0.97% increase and IndusInd Bank with a 0.63% increase. On the other hand, the biggest losers in the sector included AU Bank with a 1.89% decline, State Bank of India with a 0.34% decline, Federal Bank with a 0.16% decline, and Bank of Baroda with a 0.08% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

ITC Ltd. witnessed a high increase of 2.35% in its share price, surpassing its previous closing value of Rs 449.10. The most recent traded price of ITC Ltd. stock stands at 449.95. Over a span of 3 years, the stock generated a remarkable return of 127.57%, outperforming the Nifty 100 index, which yielded a return of 88.46% during the same period. Moreover, the company exhibited an annual revenue growth of 16.66%, which exceeded its 3-year compound annual growth rate (CAGR) of 11.8%, further showcasing its strong performance.

Hindalco Industries Ltd. experienced a decline of -1.49% in its share price, marking a departure from its previous closing value of Rs 419.90. The most recent traded price of Hindalco Industries Ltd. stock stands at 413.65. Over a span of 3 years, the stock delivered an impressive return of 202.41%, surpassing the return of 88.46% achieved by the Nifty 100 index. Notably, a 20-day moving crossover emerged yesterday, indicating a potential shift in the stock’s price trend. Historical data reveals that within 7 days of this signal in the past 5 years, an average price gain of 4.27% was observed. Additionally, it is worth highlighting that only 2.65% of trading sessions in the last 18 years witnessed intraday gains higher than 5%.

Buzz

In early trade on Tuesday, the Indian rupee witnessed a depreciation of 4 paise, reaching a level of 82.67 against the US dollar. This movement can be attributed to the strength of the US dollar against its major counterparts in the global market. However, forex traders noted that the decline in crude oil prices and the influx of foreign funds acted as limiting factors, preventing a more significant decrease in the value of the Indian currency.

During the trading session, the Indian rupee maintained a narrow range, with low volatility, as a majority of market participants adopted a cautious stance in light of the US market holiday. Meanwhile, the US dollar encountered downward pressure following the smooth progression of preliminary discussions between Republicans and Democrats.

The Brent crude futures, which serve as the global benchmark for oil prices, experienced a decline of 0.61%, leading to a valuation of $76.60 per barrel.

The Reserve Bank of India (RBI) has decided to maintain its key interest rate at 6.50% on June 8 and throughout the remainder of 2023. This decision comes as the RBI assesses the economic consequences of a series of rate hikes implemented over the past year. Although inflation reached a low point of 4.70% in April, it is anticipated that it will not align with the RBI’s medium-term target of 4% for at least another two years. Consequently, the likelihood of immediate rate cuts appears slim.

Advance Decline Ratio

Today, the advance-decline ratio was 0.90, and the market breadth was negative. The volatility index India Vix decreased by 2.33 percent to settle at 12.01 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1085
Decliners – 1203
52Wk High –  91
52Wk Low – 14
High Band Hitters – 65
Low Band Hitters – 36
200d SMA – 17834
50d SMA – 17800
20d SMA – 18304

Top Gainers and Losers Stocks

The top gainers were ITC (+2.35%), HDFC Life (+1.72%), Bajaj Finserv (+1.13%), Kotak Bank (+0.97%), and Bajaj Finance (+0.95%).

The top losers were Hindalco (-1.49%), Adani Enterprises (-1.46%), Tata Steel (-1.38%), Tech Mahindra (-1.28%), and Dr Reddy (-1.03%).

Top Gainers and Losers Sector

The top gainers sectors were Media (+0.68%), FMCG (+0.59%), Financial Services (+0.38%), and IT (+0.20%).

The top losers sectors were Metal (-0.91%), Auto (-0.29%), Consumer Durables (-0.26%), Realty (-0.21%), and Oil & Gas (-0.18%).

The Nifty Midcap 50 was up by 0.38 percent, while the Nifty Small Cap 50 was up by 0.24 percent on the day.

The Nifty Midcap 50 index currently closed at 9,506.40, while the Nifty Small Cap 50 index currently closed at 4,563.70.

SECTORS – NOTABLE ACTION
MEDIA +0.68%
FMCG +0.59%
FINANCIAL SERVICES +0.38%
METAL -0.91%
AUTO -0.29%
CONSUMER DURABLES -0.26%

Stocks Ban List

Today, the Securities and Exchange Board of India (SEBI) has not included any stock in the ban list for Futures and Options (F&O) trading.

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.
BHEL, IBULHSGFIN, and ZEEL Face Possible Entry in Ban List.

Daily Pivots

As per the above pivots data, 18580 to 18680 is the Nifty 50 trading range.

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