Indices Under Pressure for Second Straight Day

At the close, the Nifty 50 was at 17,660.15 down by 0.26%

April 18, 2023, the Nifty 50 index started the day with a slight increase in value but closed in the red, down by 0.26 percent, with the index falling below the 17700 level. This indicates that the overall performance of the top 50 companies was lower compared to the previous trading day.

On Tuesday, Indian shares experienced continued losses for a second consecutive session, with financials leading the downward trend. Investor sentiment was further dampened following weak quarterly earnings reports by Tata Consultancy Services Ltd and Infosys Ltd, which added to the uncertainty surrounding client spending.

The Nifty 50 index had previously snapped a nine-day winning streak in the previous session, and this was further reflected in the formation of a bearish engulfing pattern, which is a technical chart pattern that suggests a potential bearish bias in the market. These factors combined to weigh down on the overall performance of the Indian stock market. It’s worth noting that earnings reports and client spending are just some of the many factors that can influence the performance of the stock market, and it is essential for investors to consider various other macroeconomic and geopolitical factors as well when making investment decisions.

Bank Nifty: Up by 0.01%

Nifty 50 closed in the red, the Bank Nifty index opened in the green and closed with a slight increase of 0.01 percent at 42,265.20. On the other hand, the BSE Sensex index started the day on a lower note, and it closed down by 0.31 percent at 59,727.01. This indicates that the overall performance of the banking sector was relatively better compared to the broader market as represented by the Nifty 50 and Sensex indices.

Indian stock markets struggled to gain traction, remaining in negative territory for most of the day. As a result, the markets closed weak for the second consecutive day. This was largely attributed to selective profit-taking in banking, power, and FMCG stocks, which put downward pressure on the markets. However, buying activity in the realty and metal sectors helped to limit the overall decline.

On the day, selling pressure was observed in the FMCG, power, and infrastructure sectors of the Indian stock market. Conversely, the Pharma and Realty sectors each saw a 1 percent increase, while Information Technology, PSU Bank, and Metal sectors saw a 0.5 percent increase.

Bank Nifty

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

The gainers included Bandhan Bank with a 3.19% increase, IDFC First Bank with a 2.45% increase, IndusInd Bank with a 1.95% increase, Bank of Baroda with a 0.74% increase, and AU Bank with a 0.63% increase. On the other hand, the biggest losers in the sector included ICICI Bank with a 0.59% decline, HDFC Bank with a 0.38% decline, Kotak Bank with a 0.27% decline, and Federal Bank with a 0.19% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

On the day, Information Technology stocks in the Indian stock market managed to recover slightly by adding 0.59%, following a sharp correction in the previous session. This correction was primarily caused by weak earnings reports from TCS and Infosys, as well as concerns over tech spending in the United States and Europe.

These factors have contributed to mounting pressure on IT stocks, with the IT index falling to a six-month low on Monday, led by a 9% drop in Infosys. The IT sector has faced significant headwinds in recent times, with a decline of over 5% in the year 2023 so far, and a 26% fall in the year 2022. This performance has been largely attributed to the onset of a global rate hike cycle, among other factors. Despite this, it’s worth noting that the IT sector remains an important contributor to the Indian economy and a key driver of growth in the country’s service sector.

On Tuesday, the Indian rupee weakened against the US dollar as Treasury yields rose. This was due to the increasing likelihood of a Federal Reserve rate hike, following strong US economic data. As a result, the rupee finished the day at 82.04 per dollar, compared to 81.9725 in the previous session.

Buzz

On Tuesday, oil prices extended their decline for a second consecutive day as investors remained focused on the possibility of an increase in US interest rates and broader concerns about global economic growth.

Despite upbeat economic data from China, oil prices were weighed down by worries over the potential rate hike and the outlook for growth. In addition, the resumption of northern oil exports from the Turkish port of Ceyhan, which had been halted last month due to tensions between the Iraq federal government and the Kurdistan Regional Government (KRG), further pressured crude prices. As a result, Brent crude lost 28 cents, or 0.3%, to settle at $84.48 a barrel, after initially trading higher. US West Texas Intermediate was also down, losing 30 cents, or 0.4%, to end the day at $80.53. These market movements highlight the continued volatility in the energy markets and the importance of closely monitoring global economic and geopolitical developments.

Advance Decline Ratio

Today, the advance-decline ratio was 1.09, and the market breadth was positive. The volatility index India Vix decreased by 1.54 percent to settle at 12.08 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1176
Decliners – 1074
52Wk High –  63
52Wk Low – 17
High Band Hitters – 61
Low Band Hitters – 44
200d SMA – 17568
50d SMA – 17509
20d SMA – 17332

Top Gainers and Losers Stocks

The top gainers were Divi’s Laboratories (+3.08%), HCL Technologies (+2.27%), Cipla (+2.06%), IndusInd Bank (+1.95%), and Nestle India (+1.68%).

The top losers were Power Grid (-2.43%), UltraTech Cement (-1.90%), Adani Enterprises (-1.80%), Apollo Hospitals (-1.18%), and Titan (-1.17%).

Top Gainers and Losers Sector

The top gainers sectors were Pharma (+1.64%), Realty (+1.04%), IT (+0.59%), Metal (+0.25%), and Auto (+0.07%).

The top losers sectors were Consumer Durables (-0.36%), Financial Services (-0.33%), FMCG (-0.33%), Media (-0.33%) and Oil & Gas (-0.27%).

The Nifty Midcap 50 was up by 0.83 percent, while the Nifty Small Cap 50 was up by 0.61 percent on the day.

The Nifty Midcap 50 index currently closed at 8,771.70, while the Nifty Small Cap 50 index currently closed at 4,302.90.

SECTORS – NOTABLE ACTION
PHARMA +1.64%
REALTY +1.04%
IT +0.59%
CONSUMER DURABLES -0.36%
FINANCIAL SERVICES -0.33%
FMCG -0.33%

Stocks Ban List

(SEBI) F&O ban list (BALRAMCHIN open at 406.20 and close at 409.00) and (DELTACORP open at 191.80 and close at 193.30) is not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned BALRAMCHIN and DELTACORP 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.

IBULHSGFIN has the possiblities of enterance in the ban list.

Daily Pivots

As per the above pivots data, 17580 to 17760 is the Nifty 50 trading range.

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