Nifty Concludes May F&O Series Above 18,300

At the close, the Nifty 50 was at 18,321.15 up by 0.20%

The National Stock Exchange (NSE) Nifty 50, India’s benchmark equity index, began on a low note today but managed to climb up by 0.20% and close in the green, crossing the significant 18,300 mark. This development has captured the attention of investors and market analysts, who are keen to understand the factors that led to this performance and what it means for the future of the Indian stock market.

The Nifty began the trading session on a flat note and experienced weak price action in the first half. However, buying interest emerged from the 20-day moving average (18224), leading to a sharp surge during the second half. This surge helped the Nifty close the day on a positive note, up approximately 36 points.

During the first half of the trading session, the Nifty struggled to gain momentum. However, as the day progressed, buying interest emerged from the 20-day moving average, resulting in a significant surge in the second half. This surge helped the Nifty close the day on a positive note, up by approximately 36 points.

Throughout the day, Nifty experienced fluctuations, yet it ultimately found stability at the 18,200 level before ascending further. The Relative Strength Index (RSI) indicates a bullish crossover on the lower timeframe, indicating that the momentum is in favor of the bulls. However, resistance is anticipated at 18,500 on the higher end, while support is expected at 18,200. Despite some expected volatility, the market outlook is optimistic. Traders should capitalize on rallies by taking profits and seek opportunities to buy on dips.

Bank Nifty: Up by 0.01%

Despite the early morning struggle, both Bank Nifty and BSE Sensex managed to register gains by the end of the trading session. The Bank Nifty closed at 43,681.40, up 0.01 percent from the previous day’s close. Similarly, the BSE Sensex closed at 61,872.62, up 0.16 percent.

The Bank Nifty Index is currently embroiled in a fierce battle between the bulls and bears. Despite the bulls’ best efforts to drive the index upwards, the bears have managed to keep it in check. The recent May monthly expiry saw some volatile trading, but the index was able to hold steady at the support level of 43,400. This is a promising sign for the bulls, as it indicates that there is still a strong demand for the index at this level.

However, the index faces a significant obstacle in the form of resistance at 44,000. This is where the highest open interest is concentrated on the call side, suggesting that there is a great deal of potential for the index to surge higher if it can break through this barrier. The bulls will need to muster all their strength and determination to overcome this resistance and propel the index to new heights.

Overall, the Bank Nifty Index remains a highly dynamic and exciting market to watch, with both bulls and bears vying for dominance. As always, investors should exercise caution and carefully monitor market trends to make informed decisions about their investments.

With the exception of the metal and PSU Bank sectors, all other sectoral indices concluded on a positive note. The realty index experienced a 1% increase, while the auto, capital goods, FMCG, and power sectors each gained 0.5%.

Bank Nifty

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

The gainers included IDFC First Bank with a 3.11% increase, Kotak Bank with a 1.06% increase, Bandhan Bank with a 1.01% increase, AU Bank with a 0.40% increase and Axis Bank with a 0.29% increase. On the other hand, the biggest losers in the sector included IndusInd Bank with a 0.92% decline, Bank of Baroda with a 0.41% decline, State Bank of India with a 0.34% decline, Punjab National Bank with a 0.30% decline, and Federal Bank with a 0.20% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

The share price of Bajaj Auto Ltd. has recently increased by 2.80% from its previous close of Rs 4,517.60, with the stock last traded at Rs 4,644.00. What’s more, the company has been debt-free for the past five years, which is a testament to its financial stability and sound management. One of the key strengths of Bajaj Auto Ltd. is its diversified product portfolio, which includes two-wheelers in both rural and urban areas, three-wheelers, and exports. This diversification has helped the company weather any slowdowns in one particular segment, as evidenced by its performance during the pandemic.

For instance, in FY 22, when exports were impacted by a shortage of containers, the company’s domestic sales came to the rescue. Conversely, when the domestic market faced partial lockdowns, the company’s exports helped to offset the pressure. Overall, Bajaj Auto Ltd. is a well-managed and financially stable company with a diversified product portfolio that positions it well for future growth and success.

The share price of Wipro Ltd. has recently decreased by -1.40% from its previous close of Rs 399.70, with the stock’s last traded price currently at 394.10. Despite this recent dip, the stock has generated an impressive 111.48% return over a 3-year time period, outperforming the Nifty IT’s return of 108.59%. Additionally, Wipro Ltd. has also outperformed the Nifty 100, with a 3-year return of 111.48% compared to the Nifty 100’s return of 97.47%. It’s worth noting that over the last 18 years, only 1.41% of trading sessions have seen intraday gains higher than 5%. This highlights the stability of Wipro Ltd.’s stock and its ability to consistently perform well over time.

Overall, while the recent decrease in share price may be concerning to some investors, the long-term performance of Wipro Ltd. suggests that it is a reliable and profitable investment opportunity.

Buzz

On Thursday, the Indian rupee experienced a decline of 7 paise against the US dollar, ultimately closing at 82.75 (provisional). This drop was attributed to the strength of the American currency in the global market. The interbank foreign exchange saw the domestic unit begin at 82.76 against the dollar, before settling at 82.75 (provisional) – a decrease of 7 paise from its previous close. Throughout the day, the rupee fluctuated between a high of 82.70 and a low of 82.78 against the greenback. The previous day, the rupee had closed at 82.68 against the dollar.

During the culmination of the Monthly F&O series, the market indices experienced a tumultuous day of trading, with the Nifty ultimately closing 36 points higher. Notably, the Realty and Digital sectors displayed notable gains of nearly 1 percent, while profit-taking was observed in PSU Banks and Pharma stocks throughout the trading session.

Advance Decline Ratio

Today, the advance-decline ratio was 1.10, and the market breadth was positive. The volatility index India Vix decreased by 4.51 percent to settle at 12.52 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1180
Decliners – 1070
52Wk High –  88
52Wk Low – 13
High Band Hitters – 55
Low Band Hitters – 35
200d SMA – 17815
50d SMA – 17718
20d SMA – 18223

Top Gainers and Losers Stocks

The top gainers were Bajaj Auto (+2.95%), Adani Enterprises (+2.92%), Bharti Airtel (+2.82%), ITC (+1.90%), and Divi’s Laboratories (+1.68%).

The top losers were Wipro (-1.18%), Tata Motors (-0.94%), IndusInd Bank (-0.92%), UPL (-0.85%), and Hindalco (-0.76%).

Top Gainers and Losers Sector

The top gainers sectors were Realty (+1.12%), FMCG (+0.61%), Consumer Durables (+0.45%), Metal (+0.30%), and Auto (+0.29%).

The top losers sectors were Oil & Gas (-0.11%), Media (-0.06%), and Financial Services (-0.02%).

The Nifty Midcap 50 was up by 0.69 percent, while the Nifty Small Cap 50 was up by 0.40 percent on the day.

The Nifty Midcap 50 index currently closed at 9,332.00, while the Nifty Small Cap 50 index currently closed at 4,501.35.

SECTORS – NOTABLE ACTION
REALTY +1.12%
FMCG +0.61%
CONSUMER DURABLES +0.45%
OIL & GAS -0.11%
MEDIA -0.06%
FINANCIAL SERVICES -0.02%

Stocks Ban List

(SEBI) F&O ban list  (DELTACORP open at -233.65 and close at +236.80), and (IBULHSGFIN open at -111.50 and close at -111.55) are not currently on the stock exchange.

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

It seems that PNB, MANAPPURAM, BHEL, ZEEL, and L&TFH may be at risk of being added to the ban list.

IBULHSGFIN has the possibilites of exit from ban list.

Daily Pivots

As per the above pivots data, 18230 to 18380 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Indian Equity Market Ends Lower: Volatility Persists
Market Concludes with Modest Gains amidst Late Selling Pressure
Market Inches Higher on US Debt-Ceiling Hopes

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