Nifty Dips After Record-Breaking Rally

NiftyTrader • July 5, 2023

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Index	Price	Change	% Chg
Nifty 50	19,398.50	+9.50	+0.05%
Nifty Bank	45,151.80	-149.65	-0.33%
BSE SENSEX	65,446.04	–33.01	–0.05%

At the close, the Nifty 50 was at 19,398.50 up by 0.05%

Today, the NSE Nifty 50 commenced its trading session with a lower opening but managed to register a positive gain of 0.05 percent, concluding the day in the green. The index reached the level of approximately 19400, showcasing resilience and positive market sentiment.

Momentary fluctuations in the domestic market rally were observed due to global concerns and a moderation in Service PMI data. The escalation of trade tensions between the United States and China, combined with uncertainties surrounding the imminent release of FOMC minutes, posed challenges to the risk appetite of global investors. Nevertheless, the market witnessed a significant recovery in the final moments of trading, demonstrating a widespread rebound that reaffirms investors’ confidence in the Indian economy.

Foreign Institutional Investors (FII/FPI) engaged in the financial market with a buy value of 8,742.32 (Rs. Cr.), while the sale value amounted to 7,139.17 (Rs. Cr.). Consequently, the net value stood at 1,603.15 (Rs. Cr.). Similarly, on the same date, Domestic Institutional Investors (DII) conducted transactions with a buy value of 7,983.81 (Rs. Cr.) and a sale value of 8,422.82 (Rs. Cr.). The resulting net value, however, reflected a decrease of -439.01 (Rs. Cr.).

Bank Nifty: Down by 0.33%

At the beginning of the trading session, the Bank Nifty experienced a decline as it opened in the negative territory, marking a decrease of 0.33 percent, and ultimately concluded the day in the red at a level of 45,151.80. Likewise, the BSE Sensex witnessed a marginal decrease of 0.05 percent, concluding the day at a lower value of 65,446.04, indicating a negative trend in the market.

Regarding the Bank Nifty, the index experienced restrained price movement, primarily influenced by the weakness observed in HDFC Bank. At present, the Bank Nifty is in a phase of consolidation, following a significant upward surge. This indicates that the index is currently stabilizing after a period of notable gains. The hourly momentum indicator for the Bank Nifty reveals a negative crossover and negative divergence, signaling a decrease in upward momentum. This suggests a potential loss of strength in the upward price movement of the index.

In terms of sectorial performance, the FMCG sector recorded a notable gain of 1.82%. Within this sector, COLGATE PALMOLIVE (INDIA) LIMITED experienced a substantial gain of 4.96%, followed by GODREJ CONSUMER PRODUCTS LIMITED with a gain of 3.59%, and VARUN BEVERAGES LIMITED with a gain of 2.60%. On the other hand, the Financial Services sector endured a decline of 0.82%. Notably, HDFC BANK LIMITED experienced a loss of -2.99%, while HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED witnessed a decline of -2.94%.

Bank Nifty

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

The gainers included Punjab National Bank with a 2.72% increase, IndusInd Bank with a 2.38% increase, IDFC First Bank with a 2.10% increase, ICICI Bank with a 1.56% increase, and Bank of Baroda with a 1.26% increase. On the other hand, the biggest losers in the sector included HDFC Bank with a 2.99% decline, Bandhan Bank with a 2.44% decline, AU Bank with a 0.80% decline, and Axis Bank with a 0.30% decline. These results suggest that some banking stocks performed better for the day.

Buzz

During Wednesday’s trading session, the Indian rupee faced its most challenging day in a month, primarily due to sustained demand for the dollar from importers. Meanwhile, market participants eagerly awaited the release of the minutes from the U.S. Federal Reserve’s June policy meeting, seeking guidance regarding the potential trajectory of future interest rate hikes.

At the conclusion of the trading session, the Indian rupee recorded a decline of 0.25%, settling at 82.2250 per dollar, in contrast to its previous session’s closing value of 82.02. During the day, the currency reached its lowest point since June 15, touching a level of 82.2475, reflecting increased pressure and a weakening trend.

Indian rupee exhibited weakness, fluctuating between its lowest point of 82.24 and its highest point of 82.04 following a stable opening. As market participants anticipated a potentially hawkish stance from the Federal Reserve’s meeting minutes, they placed optimistic wagers on the dollar, resulting in a gradual decline in the rupee’s value. The market awaited the release of the meeting minutes scheduled for later in the evening, which would provide further insights into the Federal Reserve’s perspective.

Anticipating a potentially hawkish perspective on the dollar, the Indian rupee experienced a decline of 0.22 rupees. This decrease was influenced by multiple factors, including the robust performance of the dollar index and the recent upward trajectory of crude oil prices, both contributing to the rupee’s weakness. As we look forward, the rupee’s future appears to be confined within a range, fluctuating between 81.75 and 82.45, as market conditions continue to unfold.

Buzzing

Bajaj Auto Ltd. witnessed a significant increase in its share price, rising by 5.94% from its previous closing value of Rs 4,625.40. The last traded price for Bajaj Auto Ltd. stock stood at Rs 4,900.00. Over a span of 3 years, the stock delivered a return of 57.73%, while the Nifty 100 index provided a return of 78.39%. Notably, the company has remained debt-free for the past 5 years. Moreover, the dividend payout of the company is linked to the level of cash reserves. Considering the current reserve levels, there is a potential for a substantial increase in dividend payments for FY23 and beyond.

HDFC Bank Ltd. experienced a decline of -2.99% in its share price compared to its previous closing value of Rs 1,728.20. The last traded price for HDFC Bank Ltd. stock stood at Rs 1,676.60. Over a span of 3 years, the stock delivered a return of 60.92%, while the Nifty 100 index provided a return of 78.39%. Notably, the company exhibited impressive annual revenue growth of 22.05%, surpassing its 3-year compound annual growth rate (CAGR) of 11.52%. HDFC Bank Ltd. reported a year-on-year (YoY) increase of 16.96% in advances, outperforming its 5-year CAGR of 13.84%. Moreover, in the last 18 years, only 1.02% of trading sessions witnessed intraday gains exceeding 5%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.25, and the market breadth was positive. The volatility index India Vix increased by 1.55 percent to settle at 11.88 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 5896
Decliners – 4702
52Wk High – 134
52Wk Low – 9
High Band Hitters – 57
Low Band Hitters – 36
200d SMA – 17976
50d SMA – 18514
20d SMA – 18858

Top Gainers and Losers Stocks

The top gainers were Bajaj Auto (+5.94%), Divi’s Laboratories (+5.91%), HDFC Life (+4.33%), Maruti (+3.55%), and Hero MotoCorp (+3.50%).

The top losers were HDFC Bank (-2.99%), HDFC (-2.94%), Eicher Motors (-2.61%), UPL (-1.08%), and Tata Consumer (-1.06%).

Top Gainers and Losers Sector

The top gainers sectors were FMCG (+1.82%), Auto (+1.64%), Media (+1.49%), Oil & Gas (+0.84%), and Pharma (+0.71%).

The top losers sectors were Financial Services (-0.82%).

The Nifty Midcap 50 was up by 0.74 percent, while the Nifty Small Cap 50 was up by 0.65 percent on the day.

The Nifty Midcap 50 index currently closed at 10,194.15, while the Nifty Small Cap 50 index currently closed at 5,051.25.

SECTORS – NOTABLE ACTION
FMCG +1.82%
AUTO +1.64%
MEDIA +1.49%
FINANCIAL SERVICES -0.82%

Stocks Ban List

(SEBI) F&O ban list (IBULHSGFIN open at -126.55 and close at +130.50) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned 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.
DELTACORP, PNB, MANAPPURAM and L&TFH are stock that are potentially facing the possibility of being included in the ban list.

IBULHSGFIN has exited from the ban list.