Nifty Shows Resilience with Moderate Gains Amid Volatility

At the close, the Nifty 50 was at 18,534.10 up by 0.25%

Presently, the NSE Nifty 50 commenced with an elevated stance, exhibiting an increase of 0.25 percent throughout the trading session before ultimately concluding on a positive note. Notably, the Nifty index soared above the noteworthy threshold of 18500. The trading volumes on the NSE were slightly higher than the recent average.

Friday witnessed a surge in global stocks, fueled by a positive market sentiment, following indications that the US Federal Reserve would refrain from implementing a rate hike during its upcoming meeting and the successful passage of US debt ceiling legislation.

Notwithstanding the selling pressure experienced by certain large-cap stocks, the Nifty index resiliently returned to positive territory multiple times throughout the day on Friday.

Within the sectoral landscape, Realty emerges as the top gainer, exhibiting a gain of 1.42%. Notably, INDIABULLS REAL ESTATE LIMITED experienced a significant increase of 4.39%, while DLF LIMITED recorded a gain of 2.63% within this sector. Following closely, the Metal sector demonstrates a gain of 1.22%, with HINDALCO INDUSTRIES LIMITED rising by 3.43% and JINDAL STEEL & POWER LIMITED gaining by 2.92%.

Conversely, the Oil & Gas sector emerges as the top loser, experiencing a decline of 0.67%. Within this sector, MAHANAGAR GAS LIMITED witnessed a decrease of 2.83%, ADANI TOTAL GAS LIMITED faced a decline of 2.72%, and INDRAPRASTHA GAS LIMITED recorded a loss of 2.65%.

Bank Nifty: Up by 0.34%

The Bank Nifty commenced the trading session with a positive momentum, witnessing a rise of 0.34 percent, and concluded on a positive note at 43,937.85. Likewise, the BSE Sensex experienced a growth of 0.19 percent and concluded in the green, achieving a notable high of 62,547.11.

The market is currently experiencing a sense of uncertainty due to the presence of diverse global cues and the lack of clear trends in the banking sector. However, traders are finding resilience and confidence in the rotational buying of alternative sectors and the impressive outperformance of broader indices.

Despite the challenges posed by the unpredictable nature of the market, traders are maintaining an optimistic stance. This is largely due to the fact that they are able to identify opportunities for growth and success in sectors beyond banking.

As the market continues to evolve, it is important for traders to remain adaptable and open to new possibilities. By embracing the potential of alternative sectors and staying attuned to global cues, traders can position themselves for success in the face of uncertainty.

Thanks to positive domestic prospects and global influences, the Indian market overcame some volatility and regained its momentum. The auto sector stood out with strong sales figures in May, signaling a sequential recovery and boosting sentiment. Furthermore, the global equity market has been reassured by the anticipation of the Federal Reserve not implementing a rate hike.

Bank Nifty

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

The gainers included Punjab National Bank with a 1.16% increase, Bank of Baroda with a 0.95% increase, State Bank of India with a 0.66% increase, IndusInd Bank with a 0.62% increase and Federal Bank with a 0.60% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 1.17% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

Hindalco Industries Ltd. observed a notable increase of 3.43% in its share price, surpassing its previous closing value of Rs 406.35. The stock’s most recent trading price stands at Rs 420.30. Remarkably, over a span of three years, the stock has delivered a remarkable return of 187.89%, outperforming the Nifty 100 index which achieved a return of 84.45%.

A significant development occurred on May 31, 2023, as a 10-day moving crossover signal emerged. Historical data reveals an average price decline of -2.4% within seven days following this signal over the past five years. Additionally, within the span of the last 18 years, only 2.65% of trading sessions exhibited intraday gains exceeding 5%.

Adani Enterprises Ltd. experienced a decline of -2.09% in its share price, falling from its previous closing value of Rs 2,492.15. The stock’s most recent trading price stands at Rs 2,440.00. Impressively, over a span of three years, the stock has generated a significant return of 1561.99%, surpassing the Nifty 100 index, which achieved a return of 84.45%.

The company has demonstrated an outstanding annual revenue growth rate of 96.18%, outperforming its three-year compound annual growth rate (CAGR) of 45.79%. Furthermore, Adani Enterprises Ltd. declared a dividend of Rs 1.2 per share on May 4, 2023, with a record date set for July 7, 2023.

Buzz

In early trading on Friday, the Indian rupee displayed strength, gaining 10 paise against the US dollar, primarily due to a general weakness in the dollar and a positive trend observed in the domestic equity market.

Commencing at 82.31 against the dollar at the interbank foreign exchange, the rupee subsequently climbed to 82.30, marking a gain of 10 paise from its previous closing value. On Thursday, the rupee had settled at 82.40 against the US currency.

Simultaneously, the dollar index, which measures the strength of the greenback against a basket of six currencies, experienced a decline of 0.08% to reach 103.47.

Furthermore, Brent crude futures, the global oil benchmark, advanced by 0.65%, reaching $74.76 per barrel.

Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs) engaged in the Indian market recorded a buy value of Rs. 10,393.93 crore and a sale value of Rs. 11,052.81 crore. Consequently, the net value stood at -Rs. 658.88 crore.

Similarly, Domestic Institutional Investors (DIIs) participated in the market on the same date, with a buy value of Rs. 6,951.54 crore and a sale value of Rs. 6,369.69 crore. The net value for DIIs amounted to Rs. 581.85 crore.

Advance Decline Ratio

Today, the advance-decline ratio was 1.77, and the market breadth was positive. The volatility index India Vix decreased by 4.07 percent to settle at 11.13 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1473
Decliners – 832
52Wk High –  130
52Wk Low – 16
High Band Hitters – 109
Low Band Hitters – 33
200d SMA – 17850
50d SMA – 17890
20d SMA – 18361

Top Gainers and Losers Stocks

The top gainers were Hindalco (+3.43%), Hero MotoCorp (+3.09%), Apollo Hospitals (+3.03%), Tata Steel (+1.98%), and Maruti (+1.84%).

The top losers were Adani Enterprises (-2.09%), BPCL (-1.30%), HDFC Life (-1.05%), TCS (-0.53%), and Wipro (-0.44%).

Top Gainers and Losers Sector

The top gainers sectors were Realty (+1.42%), Metal (+1.22%), Auto (+0.92%), Media (+0.92%), and Pharma (+0.69%).

The top losers sectors were Oil & Gas (-0.67%), and IT (-0.40%).

The Nifty Midcap 50 was up by 0.73 percent, while the Nifty Small Cap 50 was up by 0.54 percent on the day.

The Nifty Midcap 50 index currently closed at 9,629.65, while the Nifty Small Cap 50 index currently closed at 4,698.45.

SECTORS – NOTABLE ACTION
REALTY +1.42%
METAL +1.22%
AUTO +0.92%
OIL & GAS -0.67%
IT -0.40%

Stocks Ban List

Today, the Securities and Exchange Board of India (SEBI) has not included any stock in the ban list for Futures and Options (F&O) trading.

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.
IBULHSGFIN, BHEL, INDIACEM, ZEEL, and MANAPPURAM Face Possible Entry in Ban List.

Daily Pivots

As per the above pivots data, 18470 to 18590 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Market Dips Below 18,500 as Last-Hour Selling Occurs
Understanding The Players in the Market
Nifty Trims Losses with Late-Session Rebound
Markets Approach Record High Amid Mixed Global Cues

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