Nifty bounces back from mid-session selling as last-hour buying boosts index

At the close, the Nifty 50 was at 19,811.85 up by 0.14%

The trading day for the NSE Nifty 50 commenced positively, with a 0.14% increase that persisted throughout, resulting in a close above the 19,800 mark. However, the session was characterized by volatility, responding sensitively to mixed global cues. Initially starting flat, the indices gradually gained momentum in the first half. However, a mid-session sell-off pressured the Nifty towards 19,700. Yet, a surge in buying activity during the final hour erased these losses, allowing the index to conclude higher than the previous day.

Interestingly, the broader markets depicted a mixed trend, with the Midcap sector outperforming the Frontline Index while Smallcaps faced underperformance. The Nifty mostly traded sideways until the final hour, witnessing a significant recovery from the day’s lows.

Despite the Federal Reserve’s cautious stance, refraining from signaling an imminent rate cut in its minutes, the market rebounded from the day’s correction, resulting in marginal gains. However, profit booking occurred in the broader market as investor focus shifted towards the primary market, characterized by a series of scheduled IPOs for the week.

Underlying market sentiment remains positive, buoyed by moderated inflation and decreasing US bond yields, fostering expectations for a short- to medium-term rally. These factors, alongside evolving global dynamics, are expected to shape market movements in the near future, prompting investors to keenly monitor both global and domestic cues for prudent decision-making.

Bank Nifty: Down by 0.55%

The Bank Nifty initiated the trading session in a downward trajectory, opening in the red and sustaining a decline of 0.55%, concluding at 43,449.60, persisting in negative territory throughout the trading period. Conversely, the BSE Sensex displayed a contrasting movement, rising by 0.14% and closing in the green at 66,023.24, marking an upward trend by the session’s closure.

In the sectorial landscape, the Information Technology (IT) sector notably surged, marking a substantial gain of 0.74%. Persistent Systems Ltd. led this surge with an impressive 1.86% increase, closely followed by Infosys Ltd., securing a commendable 1.27% gain.

Conversely, the Metal sector encountered a downturn, experiencing a decline of 0.90%. Jindal Stainless Ltd. notably suffered a significant loss, plummeting by -5.58%, while Welspun Corp Ltd. faced a decrease of -2.34%.

The Foreign Institutional Investors (FIIs/FPIs) engaged in transactions with a buy value of Rs. 8,111.73 crore and a sale value of Rs. 8,418.29 crore, resulting in a net value of -Rs. 306.56 crore, indicating a net selling position during the specified period.

Conversely, the Domestic Institutional Investors (DIIs) executed transactions with a buy value of Rs. 6,749.42 crore and a sale value of Rs. 6,028.18 crore, resulting in a positive net value of Rs. 721.24 crore, showcasing a net buying position within the market during the mentioned duration.

Bank Nifty

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

The gainers included Axis Bank with a 0.77% increase. On the other hand, the biggest losers in the sector included IndusInd Bank with a 2.10% decline, Punjab National Bank with a 1.92% decline, IDFC First Bank with a 1.60% decline, Kotak Bank with a 1.26% decline, and Federal Bank with a 0.95% decline. These results suggest that some banking stocks not performed better for the day.

Buzz

The Indian rupee experienced a marginal decline of 3 paise against the US dollar, settling at 83.31 (pro) on Wednesday. This movement was attributed to the USD’s strength in global markets, exerting pressure on the local unit. Concurrently, a subdued performance in domestic equities also contributed to the rupee’s downtrend, despite a supportive correction in oil prices.

Throughout the trading session, the rupee oscillated within a narrow range, commencing at 83.31 and touching a low of 83.34 against the greenback. This final settlement at 83.31 marked a slight decrease of 3 paise from its previous close, following a recovery from its all-time low to settle at 83.28 on Tuesday.

The dollar index, measuring the USD’s performance against other major currencies, displayed a 0.18% increase, standing at 103.75. Simultaneously, Brent crude futures, a pivotal global oil benchmark, observed a 0.79% dip, reaching $81.80 per barrel.

The resurgence of the US dollar ensued after the Federal Open Market Committee’s (FOMC) slightly hawkish monetary policy stance revealed in its released minutes on Tuesday.

Analyzing the forecast, the rupee might demonstrate a mild positive inclination due to expected dollar inflows driven by upcoming IPOs in the domestic market. However, this upside potential could be curtailed by the persistent strength of the US dollar and anticipations of a potential surge in crude oil prices. These factors are poised to influence the rupee’s trajectory in the near term, prompting cautious market observations.

Buzzing

Bharat Petroleum Corporation Ltd. witnessed a notable increase in share price by 3.69%, reaching Rs 402.30 from its previous close of Rs 388.00. However, a sell signal emerged due to a bearish trend indicated by a 5-day moving crossover, which historically resulted in an average price decline of -2.69% within 7 days over the past 5 years. Notably, only 1.79% of trading sessions in the last 19 years exhibited intraday declines higher than 5%.

On the other hand, Adani Ports & Special Economic Zone Ltd. observed a decline in share price by -1.17%, settling at Rs 792.00 from its preceding close of Rs 801.35. Sell signals emerged with both a 20-day and 50-day moving crossover, indicating potential bearish trends. These signals historically led to average price declines of -3.48% within 7 days and -5.0% within 30 days over the last 5 years, respectively. Interestingly, only 2.85% of trading sessions in the past 16 years experienced intraday declines higher than 5%.

Advance Decline Ratio

Today, the advance-decline ratio was 0.69, and the market breadth was negative. The volatility index India Vix decreased by 3.00 percent to settle at 11.87 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1007
Decliners – 1455
52Wk High –  140
52Wk Low – 14
High Band Hitters – 108
Low Band Hitters – 63
200d SMA – 18740
50d SMA – 19596
20d SMA – 19379

Top Gainers and Losers Stocks

The top gainers were BPCL (+3.69%), Cipla (+1.57%), Bajaj Auto (+1.36%), Infosys (+1.27%), and NTPC (+1.20%).

The top losers were IndusInd Bank (-2.10%), Kotak Bank (-1.26%), Adani Ports (-1.17%), Hindalco (-1.15%), and Adani Enterprises (-0.99%).

Top Gainers and Losers Sector

The top gainers sector were IT (+0.74%), Auto (+0.66%), Pharma (+0.63%), FMCG (+0.43%), and Oil & Gas (+0.34%).

The top losers sector were Metal (-0.90%), Media (-0.87%), Realty (-0.69%), and Financial Services (-0.23%).

SECTORS – NOTABLE ACTION
IT +0.74%
AUTO +0.66%
PHARMA +0.63%
METAL -0.90%
MEDIA -0.87%
REALTY -0.69%

Stocks Ban List

(SEBI) F&O ban list (HINDCOPPER open at +159.60 and close at -158.10), (IBULHSGFIN open at -187.00 and close at -183.25), (RBLBANK open at +235.25 and close at -234.10), (INDIACEM open at +219.90 and close at -217.35), (MCX open at +2914.95 and close at -2856.90), (NMDC open at -170.00 and close at +171.50), (MANAPPURAM open at -153.50 and close at -152.00), (ZEEL open at +251.70 and close at -249.30), (BHEL open at -140.00 and close at +141.15), (DELTACORP open at +139.55 and close at -138.55), and (CHAMBLFERT open at +311.05 and close at +312.25) 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.

BIOCON, HINDPETRO, BALRAMCHIN, PNB, SAIL, L&TFH, TATACHEM, and GNFC stocks has the possibilities of enterance in the ban list.

DELTACORP and CHAMBLFERT stocks has the possibilities of exit from ban list.

Daily Pivots

As per the above pivots data, 19710 to 19880 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Surges with a Gap Up Opening, Gains 89 Points by Closing
Nifty Time Correction Despite Banking Underperformance
RBI’s Latest Move Puts Pressure on Financials in India

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