At the close, the Nifty 50 was at 17,465.80 down by 0.26%
The NSE Nifty 50 opened with a high but eventually decreased by 0.26 percent, resulting in a red close for the day, with the Nifty index closing below 17470.
Today, the Nifty’s daily chart revealed a long bear candle, indicating a continuation of the downtrend pattern. The weekly chart has formed a negative chart pattern with lower tops and bottoms, and Nifty is currently on a downward trajectory towards forming a new lower bottom in the sequence.
Despite global markets turning green, the domestic market is exhibiting a lack of confidence with its sixth consecutive day of losses. The continued selling in the domestic market by Foreign Institutional Investors (FIIs) is acting as an overhang and preventing the sustenance of early gains.
The downward trajectory persisted amidst a sharp surge of intraday volatility as uncertainty surrounding the feeble global economic outlook, combined with the likelihood of the US Federal Reserve maintaining a stringent stance going forward, weighed heavily on investor sentiment.
Based on charts indicating key stocks in Gautam Adani’s empire, the rout in Adani Group shares appears to have room to continue, potentially extending the declines to the 85 percent downside previously flagged by Hindenburg Research.
Since the release of the report by the US-based short seller alleging accounting fraud and stock manipulation, the combined market value of the 10 listed companies in Gautam Adani’s group has slumped by about 60 percent, or $146 billion. Despite these allegations, Adani has denied any wrongdoing.
After experiencing a nearly 70 percent slump from its August highs through last week’s low, recent price action suggests that some buyers are starting to see value in Adani Power. The shares are currently down about 43 percent from their January 24 close. Last week, a doji candlestick pattern formed, with closely aligned opening and closing levels, occurring right at the lower line of a long-term rising channel. To increase the odds of a larger rebound, the shares would need to break above resistance at rupees 191. If they fail to do so, the zone from rupees 136 to 141 would become vulnerable, potentially creating a risk of a drop to around rupees100.
Bank Nifty: Down by 0.23%
At the beginning of the day, the Bank Nifty opened in the green but ended up decreasing by 0.23 percent, resulting in a red close at 39,909.40. Likewise, the BSE Sensex also experienced a 0.24 percent decrease and closed in the red, reaching a low of 59,463.93.
The Nifty Metal Index plummeted 3%, the Auto Index dropped 0.87%, and the PSU Bank Index declined 0.88%. In contrast, the Energy Index rose 0.6%. Despite the overall market downturn, the Energy Index managed to eke out a slight gain.
The Nifty Banking sector had some gainers and some losers for the day.
The gainers included IDFC First Bank with a 1.30% increase, AU Bank with a 0.82% increase, Axis Bank with a 0.63% increase, IndusInd Bank with a 0.22% increase and State Bank of India with a 0.10% increase. On the other hand, the biggest losers in the sector included Punjab National Bank with a 1.55% decline, HDFC Bank with a 0.92% decline, Federal Bank with a 0.59% decline, Kotak Bank with a 0.54% decline and Bank of Baroda with a 0.45% decline. These results suggest that some banking stocks performed better for the day.
Advance Decline Ratio
Today, the advance-decline ratio was 0.67, and the market breadth was negative. The volatility index India Vix decreased by 5.90 percent to settle at 14.19 and the FIIs were net sellers today.
DAILY MARKET ACTION
Advancers – 906
Decliners – 1345
52Wk High – 22
52Wk Low – 169
High Band Hitters – 62
Low Band Hitters – 57
200d SMA – 17361
50d SMA – 17944
20d SMA – 17770
Top Gainers and Losers Stocks
The top gainers were ONGC (+2.62%), Adani Ports (+1.44%), Asian Paint (+1.31%), Divi’s Laboratories (+1.28%), and Apollo Hospital (+0.99%).
The top losers were Adani Enterprises (-5.11%), Hindalco (-4.72%), M&M (-2.55%), JSW Steel (-2.41%), and Tata Steel (-1.96%).
Top Gainers and Losers Sector
The top gainers sectors were Oil & Gas (+0.77%), Consumer Durables (+0.35%), and Pharma (+0.23%).
The top losers sectors were Metal (-3.00%), Auto (-0.87%), Realty (-0.54%), FMCG (-0.35%), and Media (-0.35%).
The Nifty Midcap 50 was down by 0.36 percent, while the Nifty Small Cap 50 up by 0.01 percent on the day.
The Nifty Midcap 50 index currently closed at 8,476.95, while the Nifty Small Cap 50 index currently closed at 4,186.95.
SECTORS – NOTABLE ACTION
OIL & GAS +0.77%
CONSUMER DURABLES +0.35%
Stocks Ban List
(SEBI) F&O ban list (IDEA open at 6.75 and close at 6.75) are not currently on the stock exchange.
The Securities and Exchange Board of India (SEBI) has banned IDEA from trading in the futures and options (F&O) segment of 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.
PNB, IBULHSGFIN, and DELTACORP has a possibilites of entery in a ban list.
As per the above pivots data, 17380 to 17580 is the Nifty 50 trading range.
Read previous -Daily Insights- here
Volatile Market on the Monthly Expiry
Indian Stocks Rattled by Overnight Slump in US Markets
Upside Contingent on Crucial 17,900 Level as Nifty forms Bearish Candle
This article is only for educational purposes and is not an investment advice.