Nifty Dips Below 21,800, Market Fails to Sustain Gains

At the close, the Nifty 50 was at 21,771.70 down by 0.38%

In a volatile session, the NSE Nifty 50 opened optimistically but closed below 21,800, marking a 0.38% decline at 21,771.70. Investors, eager for cues from the RBI meeting on interest rates and inflation, witnessed heightened market fluctuations. Despite favorable global signals, last-hour selling erased early gains, leading both the Sensex and Nifty to close near their daily lows.

Monday’s downturn in Indian benchmark equity indices mirrored Asian counterparts, influenced by selling pressure and financial pullbacks. The Nifty’s range-bound movement around 21,920 took a sudden downturn, ending at 21,771.70 with an 82.10-point loss, showcasing a concerning trend.

Frontline Pharma stocks outperformed, counteracting the overall market decline, while the FMCG sector lagged. Back-to-back bearish candles, including a Shooting Star and Bearish Engulfing, signal resistance at higher levels.

The late-day sell-off was propelled by robust US job data for January, hinting at a potential delay in expected rate cuts from the Fed. This, coupled with US bond yields exceeding 4%, prompted investors to book profits from the post-interim Budget rally amid elevated valuations. Despite the market decline, the drop in crude prices provided some support. Investors are advised to closely monitor the evolving situation amidst these mixed market dynamics, assessing opportunities and risks for informed decision-making.

Bank Nifty: Down by 0.32%

The Bank Nifty commenced the day in the red, witnessing a marginal dip of 0.32%, closing at 45,825.55 and concluding in negative territory. The BSE Sensex mirrored this trend, displaying a modest decrease of 0.49%, settling at a low of 71,731.42 and closing in the red.

On the sectorial front, the pharmaceutical sector experienced a notable upswing, marking a significant gain of 1.79%. Glaxosmithkline Pharmaceuticals Ltd. showcased robust performance with an impressive surge of 6.18%, positioning itself as a frontrunner. Lupin Ltd. also contributed positively with a gain of 4.61%. In contrast, the Consumer Durables sector faced a downturn, registering a decline of -1.19%. Voltas Ltd. saw a setback with a notable loss of -3.57%, while Blue Star Ltd. followed suit with a decline of -2.99%.

Foreign Institutional Investors (FIIs/FPIs) maintained a net positive stance, with a buy value of Rs. 14,276.22 crore and a sale value of Rs. 13,757.34 crore, resulting in a net value of Rs. 518.88 crore. Conversely, Domestic Institutional Investors (DIIs) observed a net negative trend, reflecting a buy value of Rs. 11,869.08 crore and a sale value of Rs. 13,057.76 crore, leading to a net value of -Rs. 1,188.68 crore.

Bank Nifty

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

The gainers included IDFC First Bank with a 0.91% increase, Federal Bank with a 0.89% increase, and Bank of Baroda with a 0.80% increase. On the other hand, the biggest losers in the sector included Punjab National Bank with a 2.71% decline, Bandhan Bank with a 2.58% decline, AU Bank with a 1.11% decline, Kotak Bank with a 1.09% decline, and State Bank of India with a 1.02% decline. These results suggest that some of the banking stocks not performed better for the day.

Rupee Slips Marginally Against Stronger Dollar Amid Global Economic Signals

The Indian rupee experienced a modest depreciation of 8 paise, settling at 83.06 against the US dollar on Monday. The strengthening of the American currency on the global front and prevailing negative sentiments in domestic equity markets exerted pressure on the local unit. Despite these challenges, the rupee found support from the downward trend in global crude oil prices, limiting its decline.

Opening at 83.03 against the dollar, the rupee traded within a narrow range of 83.00 to 83.07 at the interbank foreign exchange. Ultimately, it concluded the day at 83.06, marking an 8 paise decrease from its previous close of 82.98 on Friday.

The dollar index, reflecting the greenback’s strength against a basket of six currencies, registered a 0.33% increase, reaching 104.12. The US dollar gained momentum following steady growth in the world’s largest economy, with investors closely monitoring the Reserve Bank’s upcoming monetary policy decision.

While global economic indicators play a pivotal role, the rupee’s resilience amid fluctuating factors showcases its dynamic response to both international and domestic influences. Investors and stakeholders are advised to stay vigilant, considering the evolving economic landscape.

Stocks Highlights

Coal India Ltd. witnessed a commendable uptrend, marking a 5.12% increase from its previous close of Rs 419.80 to a last traded price of Rs 441.30. The company’s impressive annual revenue growth of 27.45% has outperformed its 3-year CAGR of 12.19%. Adding to the positive momentum, a Weekly Stochastic Crossover on the week ending Feb 02, 2024, signals a green flag for Bulls, historically resulting in an average price gain of 6.29% within 7 weeks.

On the other hand, Bajaj Finance Ltd. faced a downturn with its share price decreasing by -3.24% from the previous close of Rs 6,848.30 to a last traded price of Rs 6,626.75. Despite a robust annual revenue growth of 30.86%, the company’s 3-year CAGR of 16.03%, and an efficient control over interest expenses and employee costs, the stock experienced a dip.

Advance Decline Ratio

Today, the advance-decline ratio was 0.67, and the market breadth was negative. The volatility index India Vix increased by 6.25 percent to settle at 15.62 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1048
Decliners – 1553
52Wk High –  312
52Wk Low – 23
High Band Hitters – 188
Low Band Hitters – 102
200d SMA – 19684
50d SMA – 21285
20d SMA – 21647

Top Gainers and Losers Stocks

The top gainers were Tata Motors (+5.80%), Coal India (+5.12%), BPCL (+3.14%), Sun Pharmaceutical (+3.06%), and Cipla (+2.85%).

The top losers were UPL (-10.92%), Bajaj Finance (-3.24%), Bharti Airtel (-3.23%), HDFC Life (-2.68%), and Grasim (-2.59%).

Top Gainers and Losers Sector

The top gainers sector were Pharma (+1.79%), Oil & Gas (+1.44%), Auto (+1.21%), Realty (+0.77%), and Metal (+0.39%).

The top losers sector were Consumer Durables (-1.19%), FMCG (-0.76%), Financial Services (-0.58%), IT (-0.43%), and Media (-0.23%).

SECTORS – NOTABLE ACTION
PHARMA +1.79%
OIL & GAS +1.44%
AUTO +1.21%
CONSUMER DURABLES -1.19%
FMCG -0.76%
FINANCIAL SERVICES -0.58%

Stocks Ban List

(SEBI) F&O ban list (INDUSTOWER open at -216.50 and close at -214.50), (INDIACEM open at -240.50 and close at -233.85), (HINDCOPPER open at +302.25 and close at -293.40), (ZEEL open at +178.20 and close at +178.00), and (SAIL open at +130.00 and close at +135.30) 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.

NATIONALUM, and GMRINFRA stocks has the possibilities of entrance in the ban list.

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

Daily Pivots

As per the above pivots data, 21600 to 21950 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Hits All-Time High as Oil & Gas Sector Shines, Banks Lag Behind
Volatile Trading Day for Nifty 50 Amidst Interim Budget and Global Sentiments
Investor Confidence Soars Nifty Jumps 1% Pre-Budget and Before Fed Meeting

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