Markets Under Pressure, Extend Thursday’s Decline

At the close, the Nifty 50 was at 19,265.80 down by 0.62%

In a continuation of Thursday’s downward trend, the market endured a pressure-laden session, witnessing a decline of over half a percent. The initial trading hours saw the Nifty opening on a gap-down note, maintaining a constrained range throughout the day.

Global sentiment cast a shadow over the Indian market’s performance, resulting in a lower opening that persisted through the trading session. The NSE Nifty 50 index marked a decrease of 0.62 percent from its starting point, concluding the day in the red. Notably, the Nifty closed below the mark of 19,300.

The prevailing caution among investors is palpable on a global scale, primarily driven by apprehensions surrounding potential rate hikes. All eyes were on the annual Jackson Hole conference, eagerly awaiting cues from the US Federal Reserve chair’s forthcoming speech regarding interest rate policy.

Given this scenario, the minutes of the RBI MPC meeting underscored the central bank’s dedication to overseeing domestic inflation within the established target range. With domestic inflation rates remaining elevated, this commitment underscores the central bank’s vigilance in maintaining economic stability.

Bank Nifty: Down by 0.59%

Bank Nifty in a Tug of War Range-Bound Trading Reflects Battle Between Bulls and Bears

The Bank Nifty index found itself embroiled in a persistent battle between bullish and bearish forces, leading to a phase of trading characterized by a narrow price range. This situation hinted at the possibility of looming selling pressure.

In line with this struggle, the Bank Nifty commenced the trading session on a bearish note, registering a decline of 0.59 percent, and ultimately concluding the day in the red at 44,231.45. Similarly, the BSE Sensex followed suit, marking a 0.56 percent decrease and closing in the red at a low of 64,886.51.

In the current market landscape, a sea of red engulfs the sectorial indices, reflecting a widespread downturn. Among the notable losers, the realty sector takes the lead with a decline of 1.31%. Within the realty sector, several prominent players face significant losses today. Macrotech Developers Ltd. experiences a sharp decline of -3.86%, followed by Dlf Ltd. with a decrease of -1.82%, and Oberoi Realty Ltd. trailing closely with a loss of -1.64%.

Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI) engaged in trading activities with a buy value of Rs. 10,929.61 crore and a corresponding sale value of Rs. 15,567.82 crore. Consequently, their net value stood at a deficit of Rs. -4,638.21 crore (in Rs. Crore). On the other hand, Domestic Institutional Investors (DII) participated with a buy value of Rs. 8,542.44 crore and a sale value of Rs. 7,128.09 crore. This translated to a positive net value of Rs. 1,414.35 crore (in Rs. Crore).

Bank Nifty

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

The gainers included ICICI Bank with a 0.09% increase, Bandhan Bank with a 0.09% increase, and Axis Bank with a 0.07% increase. On the other hand, the biggest losers in the sector included Punjab National Bank with a 2.47% decline, IndusInd Bank with a 1.94% decline, AU Bank with a 1.36% decline, HDFC Bank with a 1.27% decline, and State Bank of India with a 1.26% decline. These results suggest that some banking stocks not performed better for the day.

Buzz

Rupee Halts Three-Day Winning Streak, Ends at 82.69 Against US Dollar

The rupee’s three-day winning streak came to an end as it posted a depreciation of 13 paise against the US dollar, settling at 82.69 (provisional) on Friday. This downward movement was influenced by the strength of the American currency and a bearish trend in the equity markets.

The surge in global crude oil prices further added to the pressure on the domestic currency, although inflows of foreign funds did provide some cushion against greater losses.

Initiating the trading day on a weak note at 82.60, the rupee reached its intraday low of 82.72 against the dollar in interbank foreign exchange. Ultimately, it concluded the day at 82.69 (provisional), marking a decline of 13 paise from its previous close.

These fluctuations underscore the rupee’s sensitivity to various economic factors, including global currency movements, equity market performance, and the impact of rising crude oil prices. Market participants continue to monitor these dynamics as they shape the trajectory of the rupee against the US dollar.

Buzzing

Bajaj Finserv Ltd. has demonstrated a commendable upward trajectory, as evidenced by its recent market performance. The share price exhibited a notable increase of 2.41% from its previous closing value of Rs 1,468.60, reaching a last traded price of Rs 1,504.00. The stock has proven to be a rewarding investment, showcasing a remarkable 3-year return of 125.85%, surpassing the Nifty 100’s return of 66.64% over the same period. This substantial outperformance underscores Bajaj Finserv’s strategic prowess in the market.

A key indicator of the company’s robust financial health is its annual revenue growth, which stands at an impressive 19.92%. This figure not only reflects a strong performance but also outpaces its 3-year Compound Annual Growth Rate (CAGR) of 14.57%, signifying a consistent and accelerating trend in revenue generation. Remarkably, over the last 15 years, only a minimal 1.98% of trading sessions have witnessed intraday declines exceeding 5%. This stability and resilience in the face of market fluctuations further solidify Bajaj Finserv’s position as a reliable investment choice.

Larsen & Toubro Ltd. has recently witnessed a modest decline in its share price, showing a decrease of -2.09% from its previous closing value of Rs 2,688.15, resulting in a last traded price of Rs 2,632.00. Despite this short-term fluctuation, the company’s long-term performance remains impressive, evidenced by its 3-year return of 174.19%, surpassing the Nifty 100’s return of 66.64%. This substantial outperformance speaks volumes about Larsen & Toubro’s strategic strength in the market.

A noteworthy aspect of the company’s financial performance is its annual revenue growth, standing at a commendable 17.31%. This figure not only indicates healthy performance but also outperforms its 3-year Compound Annual Growth Rate (CAGR) of 7.93%, underscoring a sustained acceleration in revenue generation. Over the past 18 years, a mere 1.12% of trading sessions have observed intraday declines exceeding 5%. This resilience in the face of market fluctuations further reinforces Larsen & Toubro’s position as a stalwart in the industry.

Advance Decline Ratio

Today, the advance-decline ratio was 0.54, and the market breadth was negative. The volatility index India Vix increased by 3.26 percent to settle at 12.08 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 829
Decliners – 1525
52Wk High –  90
52Wk Low – 11
High Band Hitters – 49
Low Band Hitters – 39
200d SMA – 18346
50d SMA – 19375
20d SMA – 19490

Top Gainers and Losers Stocks

The top gainers were Jio Financial (+3.82%), Bajaj Finserv (+2.41%), Asian Paint (+0.94%), Bajaj Finance (+0.67%), and ONGC (+0.66%).

The top losers were LT (-2.09%), Dr. Reddy (-2.07%), JSW Steel (-2.02%), Adani Ports (-1.99%), and Adani Enterprises (-1.95%).

Top Gainers and Losers Sector

The top losers sectors were Realty (-1.31%), Metal (-1.26%), Pharma (-1.11%), FMCG (-1.02%), and Consumer Durables (-0.78%).

The Nifty Midcap 50 was down by 0.98 percent, while the Nifty Small Cap 50 was down by 0.05 percent on the day.

The Nifty Midcap 50 index currently closed at 11,021.60, while the Nifty Small Cap 50 index currently closed at 5,434.80.

SECTORS – NOTABLE ACTION
REALTY -1.31%
METAL -1.26%
PHARMA -1.11%

Stocks Ban List

(SEBI) F&O ban list  (GMRINFRA open at +63.95 and close at -62.20), (RBLBANK open at -226.95 and close at +230.35), (MANAPPURAM open at -141.85 and close at -139.60), (INDIACEM open at -233.95 and close at -230.55), (BHEL open at -107.65 and close at -105.25), (HINDCOPPER open at -145.80 and close at -144.85), (METROPOLIS open at -1313.30 and close at +1322.30), (GNFC open at +565.00 and close at +568.20), (IBULHSGFIN open at +165.00 and close at +172.95), (DELTACORP open at -181.00 and close at -179.20), and (PNB open at -62.45 and close at -61.50) 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.

HAL, BALRAMCHIN, SAIL, ZEEL, CANBK, L&TFH, NMDC, RECLTD and GRANULES stocks has the possibilities of enterance in the ban list.

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

Daily Pivots

As per the above pivots data, 19210 to 19340 is the Nifty 50 trading range.

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