Nifty Ends Flat after Last-Hour Selling Wipes Out Gains

At the close, the Nifty 50 was at 21,544.85 up by 0.15%

The NSE Nifty 50 displayed early promise with a 0.15 percent surge, crossing the 21500 threshold. Yet, optimism waned as profit booking eroded morning gains. This trend coincided with the impending earnings season kick-off, amid unease fueled by volatile Asian markets.

Market sentiment indicates a notable shift: a decline in bullish positions and a rise in bearish ones. Bearish sentiments hinge on doubts about sustaining high valuations despite potential triggers for corrections. While global cues turned optimistic post a US market rally, concerns linger.

India’s IT sector remains buoyant, riding the wave of a robust US tech surge and surging demand for new technologies. Auto and Realty sectors retain appeal due to strong demand. Optimism around potential US inflation easing raises hopes for imminent rate cuts, uplifting market sentiment. However, intermittent profit booking persists, influenced by mixed Asian market signals and high valuation concerns.

Market volatility led key indices to surrender early gains, closing marginally higher. Selective buying in Auto, Realty, Metals, and Oil & Gas stocks contrasted with banking stocks’ downturn. Surging crude oil prices and US bond yields compound investor unease, heightening market uncertainty.

Bank Nifty: Down by 0.44%

The trading session witnessed a varied performance from key indices. The Bank Nifty opened on an upward trajectory but concluded the day with a downturn, marking a 0.44 percent decline to reach a closing figure of 47,242.65, while the BSE Sensex edged up by 0.04 percent, closing positively at 71,386.21.

In sectorial movements, realty emerged as a standout performer with a notable surge of 2.52 percent. DLF Ltd. saw a significant gain of 4.08 percent, and Godrej Properties Ltd. observed commendable growth at 3.65 percent. Conversely, the media sector faced a downturn, marking a decline of 3.32 percent. Zee Entertainment Enterprises Ltd. experienced a substantial decrease of -7.98 percent, while Dish TV India Ltd. also witnessed a downturn, falling by -4.99 percent.

Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) maintained a net selling stance in the Indian market. Their sales amounted to Rs. 11,026.16 crore against purchases of Rs. 10,035.26 crore, resulting in a net negative value of -Rs. 990.90 crore. Conversely, Domestic Institutional Investors (DII) exhibited a net buying position, with stock purchases worth Rs. 10,472.02 crore and equities sales valued at Rs. 10,367.79 crore, leading to a positive net value of Rs. 104.23 crore.

Bank Nifty

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

The gainers included Federal Bank with a 0.60% increase, and Bandhan Bank with a 0.49% increase. On the other hand, the biggest losers in the sector included AU Bank with a 3.08% decline, IDFC First Bank with a 1.40% decline, HDFC Bank with a 0.75% decline, ICICI Bank with a 0.41% decline, and Axis Bank with a 0.29% decline. These results suggest that some of the banking stocks not performed better for the day.

Indian Rupee Strengthening Against the US Dollar Amidst Favorable Market Conditions

The Indian rupee continued its upward trajectory for the third consecutive session, marking an increase of 6 paise to reach 83.08 against the US dollar in early Tuesday trade. This upward movement was attributed to multiple factors, including the weakness of the American currency and advantageous crude oil prices, contributing to a positive market sentiment.

Supporting this surge, domestic equity markets provided a positive signal, while foreign institutional investors sustained buying activities, bolstering the Indian currency’s performance.

During early trade at the interbank foreign exchange, the rupee opened strong at 83.07 and further appreciated to 83.04 against the dollar. Eventually, the local unit settled at 83.08, exhibiting a 6-paise gain from its previous close.

The rupee’s recent trend demonstrates its resilience, having closed 1 paisa higher at 83.14 on Monday, following a 9-paise gain on Friday.

Simultaneously, the dollar index, measuring the greenback’s strength against a basket of six currencies, recorded a 0.07% decline, resting at 101.85 on Monday. In addition, Brent crude futures, the global oil benchmark, observed a 0.33% increase, reaching USD 76.37 per barrel, further influencing market dynamics.

These developments collectively contribute to the ongoing fluctuations in currency exchange rates and underline the impact of global economic factors on the Indian rupee’s performance against the US dollar.

Stocks Highlights

Hero MotoCorp Ltd. Shows Strength with Intraday Gains and Bullish Signals

Hero MotoCorp Ltd. witnessed a 2.88% rise in its share price, climbing from the previous close of Rs 4,009.50 to Rs 4,125.00. Notably, over the past 19 years, only a meager 1.38% of trading sessions experienced intraday gains higher than 5%. The recent surge coincides with a bullish signal: a 10-day moving crossover, historically resulting in an average gain of 2.85% within 7 days after the signal over the past 5 years. Additionally, the company’s revenue growth of 15.35% surpassed its 3-year compound annual growth rate (CAGR) of 4.97%.

Moreover, Hero MotoCorp Ltd. demonstrated prudent financial management, allocating less than 1% of its operating revenues towards interest expenses and 6.59% towards employee costs in the fiscal year ending March 31, 2023.

Britannia Industries Ltd. Faces Decline Amid Bearish Indicators

Conversely, Britannia Industries Ltd. experienced a -1.22% decline in its share price, dropping from the previous Rs 5,177.35 to Rs 5,114.00. The downward movement contrasts with the historical trend, as only 0.76% of trading sessions in the last 19 years witnessed intraday declines higher than 5%. The recent bearish signal—a 14-day moving crossover—historically resulted in an average price decline of -2.14% within 7 days following the signal over the past 5 years.

Despite a robust 15.02% annual revenue growth, surpassing its 3-year CAGR of 11.49%, Britannia Industries Ltd. faced a challenge with its return on equity (ROE). Although delivering an impressive ROE of 65.69% in the fiscal year ending March 31, 2023, this fell below the company’s 5-year average ROE of 45.21%, signaling a potential concern for investors.

Advance Decline Ratio

Today, the advance-decline ratio was 1.29, and the market breadth was positive. The volatility index India Vix decreased by 1.48 percent to settle at 13.26 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1412
Decliners – 1098
52Wk High –  214
52Wk Low – 5
High Band Hitters – 168
Low Band Hitters – 36
200d SMA – 19294
50d SMA – 20480
20d SMA – 21453

Top Gainers and Losers Stocks

The top gainers were Hero MotoCorp (+2.88%), Adani Ports (+2.75%), SBI Life (+2.24%), Apollo Hospitals (+2.08%), and Adani Enterprises (+2.07%).

The top losers were Britannia (-1.22%), Bajaj Finserv (-0.96%), Nestle India (-0.93%), HDFC Life (-0.91%), and Asian Paint (-0.79%).

Top Gainers and Losers Sector

The top gainers sector were Realty (+2.52%), Auto (+0.92%), Pharma (+0.87%), Metal (+0.79%), and IT (+0.43%).

The top losers sector were Media (-3.32%), Financial Services (-0.45%), and FMCG (-0.18%)

SECTORS – NOTABLE ACTION
REALTY +2.52%
AUTO +0.92%
PHARMA+0.87%
MEDIA-3.32%
FINANCIAL SERVICES -0.45%
FMCG -0.18%

Stocks Ban List

(SEBI) F&O ban list (HINDCOPPER open at -271.50 and close at +270.40), (BANDHANBNK open at -240.00 and close at +234.90), (ESCORTS open at +2874.00 and close at -2823.40), (INDIACEM open at -259.90 and close at +258.50), (PEL open at -932.95 and close at -923.50), (NATIONALUM open at -125.00 and close at +128.45), (CHAMBLFERT open at +384.00 and close at +379.35), (SAIL open at -115.20 and close at -114.20), (DELTACORP open at -151.40 and close at +150.65), (ZEEL open at -256.15 and close at -256.30), (IEX open at -161.85 and close at +162.85), (GNFC open at -746.00 and close at +764.30), and (BALRAMCHIN open at -399.00 and close at -397.35) 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.

BHEL, INDUSTOWER, PVRINOX, BIOCON, ASHOKLEY, UPL, and ABFRL stocks has the possibilities of entrance in the ban list.

IEX, GNFC, and BALRAMCHIN stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 21400 to 21700 is the Nifty 50 trading range.

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