Nifty Flat as Late Sell-Off Erases Early Gains

At the close, the Nifty 50 was at 18,265.95 up by 0.01%

NSE Nifty 50 opened on an optimistic note, exhibiting a volatile zigzag pattern with intermittent downward movements before ultimately experiencing an uptick of 0.01 percent and concluding in the positive territory. The Nifty index demonstrated remarkable resilience throughout the trading session by steadfastly maintaining its position above the critical threshold of 18200.

The trading session on May 9th witnessed a tardy sell-off in the market, effectively nullifying the early gains made as traders opted to cash in on their profits amid concerns over a few upcoming data points. The United States is slated to release critical inflation data, which is expected to play a pivotal role in shaping the Federal Open Market Committee’s (FOMC) stance in their subsequent meeting.

A section of analysts remains apprehensive that in the event of the US inflation rate, projected to remain unaltered at 5% from March, persisting at an elevated level, the Federal Reserve may prolong their strict approach. Nevertheless, a sustained influx of backing from foreign institutional investors (FIIs) has been instrumental in mitigating the possibility of a sharp correction in the domestic market.

Bank Nifty: Down by 0.20%

Bank Nifty commenced with a bullish trend, displaying a slight downward trajectory of 0.20 percent before ultimately concluding in the negative territory at 43,198.15. Similarly, the BSE Sensex index exhibited a neutral trend with no significant change in its value before closing in the red zone at a low of 61,761.33.

Among the 13 key sectoral indices, eight witnessed a decline, with the financials sector carrying significant weightage experiencing a drop of 0.15 percent. The banking sector index and the public sector bank index, too, bore the brunt of the market’s bearish sentiment, recording losses of 0.2 percent and 2.75 percent, respectively.

FII/FPIs had a net buy value of Rs. 1,942.19 crores, with a buy value of Rs. 7,433.16 crores and sale value of Rs. 5,490.97 crores. Meanwhile, DIIs had a net buy value of Rs. 404.70 crores, with a buy value of Rs. 7,148.35 crores and sale value of Rs. 6,743.65 crores.

Bank Nifty

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

The gainers included AU Bank with a 1.85% increase, IndusInd Bank with a 1.36% increase, Axis Bank with a 1.09% increase, and IDFC First Bank with a 0.39% increase. On the other hand, the biggest losers in the sector included Punjab National Bank with a 3.55% decline, Bank of Baroda with a 2.98% decline, State Bank of India with a 1.70% decline, Bandhan Bank with a 0.43% decline and ICICI Bank with a 0.42% decline. These results suggest that some banking stocks not performed better for the day.

Buzzing

In a bid to instill confidence among investors, Gautam Adani’s business conglomerate has announced plans to prepay USD 130 million of its debt. The Adani Group had been targeted by a US-based short-seller, and this move aims to demonstrate the company’s robust liquidity position. Adani Ports and Special Economic Zone, the ports division of the Adani Group, had recently floated a tender to buy back USD 130 million of its July 2024 bonds and an equivalent amount in each of the next four years. As per a filing made with the stock exchange, APSEZ has received a valid tender for a total principal amount of USD 412.7 million.

The Indian rupee displayed a lackluster performance, encountering resistance at the 81.80-81.85 mark, following which it weakened by 0.25rs, reaching a low of 82.15 against the dollar at 82.05. In contrast, the dollar index showcased a robust performance in the past 24 hours, surging from its low of $100.85 to its high of $101.30.

Foreign institutional investors (FIIs) were observed to be booking profits in the capital markets, exacerbating the downward pressure on the rupee. The public sector undertaking (PSU) segments were also impacted by the profit booking, contributing to the rupee’s decline. Market participants are closely monitoring the US CPI data slated for release on May 10, 2023, as it is expected to establish the trend for the dollar index.

Buzz

Divi’s Laboratories Ltd. The share price of Divi’s Laboratories Ltd. surged by 2.95% from its previous close of Rs 3,286.30 to reach Rs 3,383.20. Over a three-year period, the stock generated a return of 42.83%, compared to Nifty 100’s 90.67% return. A MACD (Moving Average Convergence Divergence) daily crossover signal emerged yesterday. In the past decade, there has been an average price decline of -3.31% within ten days of this signal. Intriguingly, only 1.54% of the trading sessions in the past 18 years witnessed intraday declines higher than 5%.

IndusInd Bank Ltd. The share price of IndusInd Bank Ltd. rose by 1.35% from its previous close of Rs 1,126.35, with the last traded price at 1,141.60. Yesterday, a 200-day moving crossover occurred, which has historically resulted in an average price gain of 6.61% within 30 days. The company’s annual revenue growth of 16.51% surpassed its 3-year CAGR of 7.54%. In addition, IndusInd Bank Ltd. reported a YoY increase of 21.28% in advances, exceeding its 5-year CAGR of 9.24%. Notably, only 3.43% of trading sessions in the last 18 years saw intraday gains higher than 5%.

Advance Decline Ratio

Today, the advance-decline ratio was 0.76, and the market breadth was negative. The volatility index India Vix increased by 0.33 percent to settle at 12.68 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 989
Decliners – 1301
52Wk High –  82
52Wk Low – 13
High Band Hitters – 47
Low Band Hitters – 43
200d SMA – 17710
50d SMA – 17539
20d SMA – 17881

Top Gainers and Losers Stocks

The top gainers were Divi’s Laboratories (+3.09%), IndusInd Bank (+1.36%), Coal India (+1.33%), TCS (+1.27%), and Axis Bank (+1.09%).

The top losers were UPL (-3.03%), ITC (-1.70%), SBIN (-1.70%), Bajaj Finance (-1.50%), and JSW Steel (-1.08%).

Top Gainers and Losers Sector

The top gainers sectors were IT (+0.73%), Auto (+0.47%), Pharma (+0.42%), and Oil & Gas (+0.18%).

The top losers sectors were Realty (-0.85%), FMCG (-0.35%), Consumer Durables (-0.32%), Media (-0.23%) and Financial Services (-0.15%).

The Nifty Midcap 50 was up by 0.04 percent, while the Nifty Small Cap 50 was down by 0.15 percent on the day.

The Nifty Midcap 50 index currently closed at 9,152.80, while the Nifty Small Cap 50 index currently closed at 4,468.85.

SECTORS – NOTABLE ACTION
IT +0.73%
AUTO +0.47%
PHARMA +0.42%
REALTY -0.85%
FMCG -0.35%
CONSUMER DURABLES -0.32%

Stocks Ban List

(SEBI) F&O ban list  (BHEL open at 81.60 and close at 79.40 ),(GNFC open at 600.00 and close at 592.25), and (MANAPPURAM open at 112.00 and close at 115.80) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned BHEL, GNFC and MANAPPURAM 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 BHEL, GNFC and MANAPPURAM may be at risk of being added to the ban list.

Daily Pivots

As per the above pivots data, 18210 to 18340 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Bounces Back as Financials Recover from Friday’s Decline
Nifty Falls Below 18,100 as HDFC Shares Drop Up to 6%
Nifty50 Surges with 166-Point Gain, Resumes Upward Momentum

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