Nifty 50 Indexes Stage Late-Day Reversal, Recover from Losses

At the close, the Nifty 50 was at 18,816.70 up by 0.33%

Today, the NSE Nifty 50 commenced its trading session on a downward trajectory but managed to make a remarkable recovery, closing in positive territory with a gain of 0.33 percent. Notably, the Nifty index surged above the 18800 mark, displaying resilience and strength in the face of initial market challenges.

At the start of the trading session, the Indian market approached with caution due to the impact of weak global cues and increased worries about the Chinese economy. These worries were intensified by China’s recent move to reduce interest rates after a 10-month break.

The Indian market is not impervious to global economic trends and events, and investors are closely monitoring China’s actions as a major player in the global economy. The reduction of interest rates is especially noteworthy as it may have significant consequences for the worldwide financial environment.

Bank Nifty: Up by 0.30%

The Bank Nifty began the day in negative territory but showcased resilience by registering a 0.30 percent increase, ultimately closing in the green zone at a level of 43,766.50. Likewise, the BSE Sensex displayed positive momentum with a 0.25 percent gain and concluded the session on a high note, reaching 63,327.70.

The global market was fraught with apprehension over the possibility of an interest rate hike by the US Federal Reserve during its upcoming July meeting. However, despite these worries, the indices demonstrated a remarkable recovery, primarily driven by gains in the IT and Auto sectors.

In terms of sector performance, the Information Technology (IT) sector emerged as the top gainer, showcasing a gain of 0.78%. Notable gainers within this sector included HCL Technologies Limited, which saw a substantial increase of 2.85%, L&T Technology Services Limited with a gain of 2.28%, and Tech Mahindra Limited, which gained by 1.31%. Conversely, the Media sector experienced the highest decline, with a loss of 1.22%. Within this sector, Zee Entertainment Enterprises Limited faced a significant decrease of -6.18%, while PVR Inox Limited recorded a loss of -1.58%.

Bank Nifty

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

The gainers included IDFC First Bank with a 2.28% increase, Axis Bank with a 0.97% increase, Bank of Baroda with a 0.85% increase, Kotak Bank with a 0.80% increase, and ICICI Bank with a 0.54% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 1.12% decline, AU Bank with a 0.43% decline, IndusInd Bank with a 0.38% decline, and State Bank of India with a 0.15% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

On Tuesday, the Indian rupee concluded the trading session with a significant decline, marking its most substantial drop in two weeks. The currency was influenced by the potential outflow of corporate dollars and the depreciation of the Chinese currency, which contributed to its weakness. This decline is a cause for concern for investors and economists alike, as it highlights the vulnerability of the Indian economy to external factors. It is imperative for policymakers to take necessary measures to stabilize the currency and ensure its resilience in the face of global economic challenges.

Indian equity market experienced noteworthy stake sales with two prominent transactions taking place. Abrdn plc, a British asset manager, divested a stake worth $432 million in HDFC Asset Management Co. Additionally, the Singapore-based parent company of Timken India sold a stake valued at $231 million. These stake sales signify significant movements in the Indian equity market.

Buzz

The recent surge in Swedish inflation, particularly in the hotel and restaurant sectors, has garnered significant global attention and media coverage. This unexpected upswing in the Consumer Price Index (CPI) holds significant implications for Sweden’s economy and its citizens. Interestingly, instead of a predicted reversal, a trend of pauses and intermittent rate increases has emerged, leading investors to realize that central banks can resume hiking cycles after temporary breaks.

The Reserve Bank of Australia surprised the market with a rate hike in May, causing adjustments in investment strategies. Similarly, the Bank of Canada recommenced rate hikes in June, contrary to earlier indications of a pause, driven by strong economic activity and inflation exceeding expectations in January. While the US Federal Reserve considered forgoing a rate hike, their dot plot revealed the possibility of future increases, and the Fed closely monitors economic indicators to adjust policies accordingly.

It is clear that the global economic landscape is in a state of flux, with central banks navigating the delicate balance between economic growth and inflation. As such, investors must remain vigilant and adaptable to the ever-changing market conditions.

Advance Decline Ratio

Today, the advance-decline ratio was 1.28, and the market breadth was positive. The volatility index India Vix decreased by 0.82 percent to settle at 11.13 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1301
Decliners – 1014
52Wk High –  116
52Wk Low – 10
High Band Hitters – 74
Low Band Hitters – 51
200d SMA – 17912
50d SMA – 18252
20d SMA – 18609

Top Gainers and Losers Stocks

The top gainers were Tata Motors (+3.07%), HCL Technologies (+2.85%), Power Grid (+2.71%), HDFC Life (+2.49%), and Eicher Motors (+2.04%).

The top losers were Bajaj Finance (-1.80%), Bajaj Finserv (-1.23%), Sun Pharmaceutical (-0.90%), M&M (-0.81%), and BPCL (-0.57%).

Top Gainers and Losers Sector

The top gainers sectors were IT (+0.78%), Auto (+0.74%), Metal (+0.70%), Realty (+0.49%), and Financial Services (+0.40%).

The top losers sectors were Media (-1.22%), and Pharma (-0.19%).

The Nifty Midcap 50 was up by 0.67 percent, while the Nifty Small Cap 50 was up by 0.36 percent on the day.

The Nifty Midcap 50 index currently closed at 9,957.55, while the Nifty Small Cap 50 index currently closed at 4,863.15.

SECTORS – NOTABLE ACTION
IT +0.78%
AUTO+0.74%
METAL +0.70%
MEDIA -1.22%
PHARMA -0.19%

Stocks Ban List

(SEBI) F&O ban list  (L&TFH open at -118.80 and close at +121.60), (HAL open at -3899.00 and close at -3848.70), (DELTACORP open at -247.70 and close at -245.35), (ZEEL open at -185.50 and close at -173.30) (INDIACEM open at -222.95 and close at -222.40), (IBULHSGFIN open at -113.00 and close at +114.05), (TATACHEM open at +980.00 and close at +983.50), and (MANAPPURAM open at -127.15 and close at -125.95) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned L&TFH, HAL, DELTACORP, ZEEL, INDIACEM, IBULHSGFIN, TATACHEM, and MANAPPURAM 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.
BHEL, BALRAMCHIN, PNB, HINDCOPPER, RBLBANK, IDFC, RAIN, DIXON, and GNFC Face Possible Entry in Ban List.

INDIACEM, IBULHSGFIN, TATACHEM, and MANAPPURAM has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 18700 to 18890 is the Nifty 50 trading range.

Read previous -Daily Insights- here
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Nifty Surges Past 18,700 on Strong Global Markets and Positive Domestic Data

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