Nifty Bounces Back Closing Higher Despite Early Losses

At the close, the Nifty 50 was at 22,104.05 up by 0.22%

In a day marked by fluctuating sentiments, the NSE Nifty 50 commenced with a red start but managed to finish in the green, exhibiting resilience by registering a 0.22 percent increase. Surpassing the 22,000 mark, the benchmark Nifty 50 showcased a notable recovery from earlier lows on May 13, ultimately closing at 22,104.05 points, after rebounding from an intraday decline of approximately 180 points.

Investor attention remains focused on forthcoming US inflation data and Federal Reserve speeches scheduled throughout the week. The release of key inflation indicators, including one-year inflation expectations, PPI data on Tuesday, and CPI on Wednesday, will be closely monitored, potentially impacting the recent bond rally.

Market volatility characterized the beginning of the week, eventually yielding marginal gains by its conclusion. Notably, significant recovery among key market players propelled the index to close near the day’s peak at 22,131.65, erasing earlier losses.

While the market showcased resilience with a marginal gain, apprehensions persist regarding the ongoing general election and elevated valuations. Additionally, the flight of Foreign Institutional Investors (FIIs) from domestic markets may contribute to short-term weakness. Investors remain vigilant ahead of key economic data releases and the Fed chair’s speech, seeking insights for near-term market direction.

The Indian stock markets demonstrated a robust intraday recovery on Monday, indicative of underlying resilience amidst prevailing uncertainties in the global and domestic economic landscape.

Bank Nifty: Up by 0.70%

Despite a cautious start, both the Bank Nifty and the BSE Sensex demonstrated resilience, closing the trading session on a positive note. The Bank Nifty opened in the red but saw a notable increase of 0.70 percent, ultimately closing in the green at 47,754.10. Similarly, the BSE Sensex, after initial fluctuations, recorded a modest uptick of 0.15 percent, reaching a high of 72,776.13 by the day’s end.

The performance of these key indices underscores investor confidence amidst market volatility. The Bank Nifty’s upward movement signals strength in the banking sector, while the BSE Sensex’s positive close reflects broader market optimism.

In the sectoral front, the pharmaceutical sector witnessed significant gains, with an impressive uptick of 1.77%. Notably, Cipla Ltd. emerged as a frontrunner in this sector, showcasing a remarkable surge of 6.08%, closely followed by Aurobindo Pharma Ltd., which recorded a substantial gain of 4.78%.

However, contrasting the upward trajectory of Pharma, the auto industry faced a downturn, marking a decline of 1.68%. Tata Motors (TATAMTRDVR) Ltd. experienced a notable setback, with a substantial loss of -8.46%, while Tata Motors (TATAMOTORS) Ltd. also endured a significant decline of -8.34%.

Foreign Institutional Investors (FIIs/FPIs) recorded a buy value of Rs. 10,309.45 crore, while their sale value amounted to Rs. 14,808.37 crore. Consequently, the net value stood at a deficit of Rs. -4,498.92 crore.

Conversely, Domestic Institutional Investors (DIIs) showcased a contrasting trend, with a buy value of Rs. 12,655.75 crore and a sale value of Rs. 9,093.00 crore, resulting in a positive net value of Rs. 3,562.75 crore.

Bank Nifty

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

The gainers included Bank of Baroda with a 1.82% increase, Federal Bank with a 1.56% increase, IDFC First Bank with a 1.50% increase, HDFC Bank with a 1.29% increase, and Axis Bank with a 1.22% increase.

On the other hand, the biggest losers in the sector included State Bank of India with a 1.03% decline, Punjab National Bank with a 0.32% decline, IndusInd Bank with a 0.27% decline, and AU Bank with a 0.09% decline. These results suggest that most of the banking stocks performed better for the day.

Rupee Marginally Lower Against US Dollar Amidst Mixed Market Sentiment

On Monday, the Indian rupee experienced a marginal decline of 1 paisa against the US dollar, settling at 83.52 (pro). Despite the positive performance of domestic equities, the rupee’s resilience was overshadowed by the strength of the American currency.

With foreign investors favoring US dollars and the Reserve Bank of India (RBI) engaging in selling activities, the USD/INR pair is anticipated to maintain a range-bound trajectory with a slight inclination towards weakness.

Throughout the trading session, the rupee oscillated within a narrow range, opening at 83.51 and touching an intraday low of 83.53. Ultimately, it closed at 83.52 (pro), registering a minor decline from its previous closing value.

Analysts project a subdued outlook for the rupee, influenced by the robust US dollar and domestic market fluctuations. Continued selling by Foreign Institutional Investors (FIIs) might further exert pressure on the rupee. Nevertheless, potential dollar inflows related to bonds could provide support at lower levels.

Meanwhile, the dollar index, measuring the greenback’s strength against a basket of currencies, saw a marginal decrease to 105.27 by 0.02%. Concurrently, Brent crude futures, the global oil benchmark, witnessed a modest uptick, rising by 0.12% to $82.89 per barrel. Investors are advised to closely monitor these developments for informed decision-making in the currency and commodity markets.

Stocks Highlights

Cipla Ltd. Shows Strong Performance Amidst Market Volatility

Cipla Ltd. witnessed a notable surge in its share price, increasing by 6.08% from its previous close of Rs 1,339.55 to Rs 1,421.00. The company’s Return on Equity (ROE) for the year ending March 31, 2024, stood at 15.43%, outperforming its five-year average of 11.98%. Despite a quarterly revenue decline of 5.54%, which is the lowest in the last three years, Cipla Ltd. remains resilient in its financial performance.

Comparing stock returns with the Nifty 100, Cipla Ltd. delivered a commendable three-year return of 49.07%, slightly below the Nifty 100’s return of 54.73%. Nevertheless, Cipla Ltd.’s consistent growth trajectory and strong ROE position it as an attractive investment option.

Tata Motors Ltd. Faces Challenges Amidst Market Turbulence

In contrast, Tata Motors Ltd. experienced a significant decline in its share price, dropping by -8.34% from its previous close of Rs 1,046.65 to Rs 959.40. However, the company’s ROE for the year ending March 31, 2024, was notably robust at 26.21%, outperforming its five-year average of -0.41%.

Tata Motors Ltd. faces challenges, including a substantial percentage of operating revenues allocated towards interest expenses and employee costs. Despite this, a recent buy signal, indicated by a weekly stochastic crossover, suggests a potential upside. Historical data indicates an average price gain of 10.87% within seven weeks of this signal over the last decade.

Advance Decline Ratio

Today, the advance-decline ratio was 0.72, and the market breadth was negative. The volatility index India Vix increased by 11.51 percent to settle at 20.60 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1075
Decliners – 1502
52Wk High – 63
52Wk Low – 38
High Band Hitters – 114
Low Band Hitters – 141
200d SMA – 20859
50d SMA – 22297
20d SMA – 22336

Top Gainers and Losers Stocks

The top gainers were Cipla (+6.08%), Asian Paint (+3.85%), HDFC Life (+3.57%), Adani Enterprises (+3.27%), and Adani Ports (+3.03%).

The top losers were Tata Motors (-8.34%), BPCL (-1.72%), Shriram Finance (-1.67%), Coal India (-1.15%), and NTPC (-1.13%).

Top Gainers and Losers Sector

The top gainers sector were Pharma (+1.77%), Metal (+1.31%), Realty (+1.23%), Financial Services (+0.74%), and IT (+0.42%).

The top losers sector were Auto (-1.68%), Oil & Gas (-0.75%), Consumer Durables (-0.41%), and Media (-0.22%).

SECTORS – NOTABLE ACTION
PHARMA +1.77%
METAL +1.31%
REALTY +1.23%
AUTO -1.68%
OIL & GAS -0.75%
CONSUMER DURABLES -0.41%

Stocks Ban List

(SEBI) F&O ban list (HINDCOPPER open at +370.45 and close at -366.80), (ZEEL open at -131.80 and close at -129.80), (BALRAMCHIN open at +374.45 and close at -372.50), (IDEA open at -12.60 and close at -12.60), (SAIL open at +157.35 and close at +157.05), (CANBK open at +552.00 and close at +549.35), (GMRINFRA open at +80.30 and close at +82.35), and (PNB open at -123.90 and close at -123.10) 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.

LICHSGFIN, INDIACEM, BSOFT, BANDHANBNK, IDFCFIRSTB, BIOCON, COFORGE, GNFC, and BANKBARODA stocks has the possibilities of entrance in the ban list.

PNB stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 21900 to 22200 is the Nifty 50 trading range.

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