Monthly Expiry Day Sees Volatile Markets, 0.5% Loss

NiftyTrader • August 31, 2023

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Index	Price	Change	% Chg
Nifty 50	19,253.80	–93.65	-0.48%
Nifty Bank	43,989.15	–243.45	-0.55%
BSE SENSEX	64,831.41	–255.84	–0.39%

At the close, the Nifty 50 was at 19,253.80 down by 0.48%

In the intricate landscape of financial markets, the NSE Nifty 50 commenced the day on a positive note, only to conclude with a decline of 0.48 percent, signaling fluctuations in trading. The day’s proceedings were marked by a notable descent below the crucial 19300 mark, denoting a bearish sentiment.

Investor sentiment was notably influenced by a recurring pattern of last-hour profit booking, erasing earlier intra-day gains. This phenomenon not only disrupted the market’s three-day winning streak on August 31 but also accentuated the session’s volatility, coinciding with the August F&O expiry.

The market’s trajectory remained in line with the previous day’s decline, maintaining its volatile disposition on the monthly expiry date. The subdued performance saw the market lose nearly half a percent, indicating the prevailing cautious sentiment among investors.

Amidst this dynamic backdrop, distinct sectoral trends emerged. Notably, the realty and IT sectors demonstrated resilience by edging higher, showcasing a divergence in market movements. This mixed behavior underscored the complexity of market dynamics, wherein varying factors influence individual sectors to varying degrees.

Bank Nifty: Down by 0.55%

In the ever-evolving realm of financial markets, the Bank Nifty has encountered persistent selling pressure, resulting in a second successive day of negative closures. The recent market dynamics have prompted intriguing signals from both daily and hourly momentum indicators, portraying a divergence that points towards a probable consolidation phase.

Further analyzing the technical aspects, the daily Bollinger Bands have displayed a contracting pattern, hinting at an imminent period of consolidation. This suggests that the Bank Nifty may undergo a phase of muted price movements, as market participants assess prevailing trends and gauge potential shifts.

The trading day witnessed the Bank Nifty’s initial rise, only to conclude with a downturn of 0.55 percent, closing at 43,989.15. Similarly, the BSE Sensex experienced a comparable decline, down by 0.39 percent, and reached a closing value of 64,831.41.

The consumer durables sector was the best performer in the market, gaining 0.83% on Thursday. The sector was boosted by the strong performance of Havells India Ltd. and Kajaria Ceramics Ltd., which gained 2.37% and 2.27% respectively. Havells India is a leading electrical goods manufacturer, while Kajaria Ceramics is a top tile producer in the country. Both companies have benefited from the increased demand for home improvement products amid the pandemic.

On the other hand, the oil and gas sector was the worst performer, losing 1.04% on Thursday. The sector was dragged down by the sharp decline of Hindustan Petroleum Corporation Ltd. and Bharat Petroleum Corporation Ltd., which lost 3.73% and 3.31% respectively. The oil marketing companies have been facing pressure from the rising crude oil prices and the weak demand for fuel products in the domestic market.

Bank Nifty

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

The gainers included IDFC First Bank with a 3.25% increase, Federal Bank with a 0.49% increase, and ICICI Bank with a 0.10% increase. On the other hand, the biggest losers in the sector included Bank of Baroda with a 2.32% decline, Axis Bank with a 1.21% decline, IndusInd Bank with a 0.97% decline, AU Bank with a 0.95% decline, and State Bank of India with a 0.93% decline. These results suggest that some banking stocks not performed better for the day.

Buzzing

Maruti Suzuki India Ltd., the country’s largest carmaker, saw its share price rise by 2.08% on Thursday, closing at Rs 10,000. The stock has delivered a stellar return of 40.32% in the last three years, beating the Nifty Auto index, which gained 92.05% in the same period. Maruti Suzuki India has also reported a robust annual revenue growth of 32.9%, higher than its three-year compound annual growth rate (CAGR) of 14.7%. The company has a strong market share and a loyal customer base in the Indian automobile industry. The stock is known for its low volatility and high liquidity, as only 1.69% of the trading sessions in the last 18 years witnessed intraday gains of more than 5%.

Bharat Petroleum Corporation Ltd., one of the leading oil marketing companies in India, saw its share price fall by 3.31% on Thursday, closing at Rs 340.30. The stock has been a laggard in the last three years, losing 12.87% of its value, while the Nifty 100 index surged 63.6% in the same period. Bharat Petroleum Corporation has also faced a bearish signal from the 200-day moving average crossover, which occurred yesterday. The stock has historically declined by 5.71% on average within 30 days of this signal in the last five years. The company has reported a strong annual revenue growth of 35.99%, higher than its three-year compound annual growth rate (CAGR) of 18.13%. However, the company has also been exposed to the volatility of crude oil prices and the weak demand for fuel products in the domestic market. The stock is known for its high risk and low reward, as only 1.81% of the trading sessions in the last 18 years witnessed intraday declines of more than 5%.

Advance Decline Ratio

Today, the advance-decline ratio was 0.92, and the market breadth was negative. The volatility index India Vix increased by 2.22 percent to settle at 12.06 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1116
Decliners – 1211
52Wk High – 153
52Wk Low – 9
High Band Hitters – 68
Low Band Hitters – 33
200d SMA – 18369
50d SMA – 19418
20d SMA – 19419

Top Gainers and Losers Stocks

The top gainers were Jio Financial (+3.78%), Maruti (+2.08%), HDFC Life (+1.41%), Cipla (+1.40%), and Tata Steel (+1.23%).

The top losers were Adani Enterprises (-3.51%), BPCL (-3.31%), Adani Ports (-3.18%), Britannia (-2.00%), and Eicher Motors (-1.90%).

Top Gainers and Losers Sector

The top gainers sectors were Consumer Durables (+0.83%), Realty (+0.65%), and IT (+0.20%).

The top losers sectors were Oil & Gas (-1.04%), FMCG (-0.82%), Financial Services (-0.53%), Media (-0.40%), and Metal (-0.28%).

The Nifty Midcap 50 was down by 0.20 percent, while the Nifty Small Cap 50 was up by 0.36 percent on the day.

The Nifty Midcap 50 index currently closed at 11,182.65, while the Nifty Small Cap 50 index currently closed at 5,619.40.

SECTORS – NOTABLE ACTION
CONSUMER DURABLES +0.83%
REALTY +0.65%
IT +0.20%
OIL & GAS -1.04%
FMCG -0.82%
FINANCIAL SERVICES -0.53%

Stocks Ban List

(SEBI) F&O ban list (IBULHSGFIN open at +194.10 and close at +198.30), and (BHEL open at +120.90 and close at +121.25) 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.

ZEEL, BALRAMCHIN, INDIACEM, PEL, PNB, INDUSTOWER, and SAIL stocks has the possibilities of enterance in the ban list.