Nifty Suffers Eighth Consecutive Session of Decline Today

At the close, the Nifty 50 was at 17,303.95 down by 0.51%

NSE Nifty 50 started at a low point and ended the day in negative territory, with a decline of 0.51 percent. It closed below 17310, which indicates a bearish trend in the stock market.

As Nifty continued to plummet for the eighth consecutive session today, a bearish candle was formed on the daily chart and settled below the 200-day moving average of 17,376, indicating a further decline in the near future.

Market has been showing weakness after the downside breakout of the immediate support of the ascending trend line at 17490 levels on 24th Feb. This confirms the validity of the downside breakout. An ascending trend line is a technical analysis tool used to identify upward trends in a stock’s price movement. When the price breaks below this trend line, it is considered a bearish signal, indicating a possible reversal of the previous uptrend.

Buzzing

Shares of Adani Enterprises were trading 14 percent up at Rs 1,371.35 on February 28.

Securities and Exchange Board of India (SEBI), was investigating allegations made by US-based short seller Hindenburg Research against the Adani Group in the past.

The Adani Group is a large conglomerate headquartered in India with diversified businesses in sectors such as ports, power, and mining. Short selling is a strategy used by investors to profit from a decline in a stock’s price. Hindenburg Research is known for its critical reports on companies, which have often led to significant declines in stock prices. It is not uncommon for regulators to investigate allegations of misconduct in the stock market. Investors should conduct thorough due diligence on any company they are considering investing in and should stay informed about any regulatory investigations or other market news that may impact the company’s performance.

Bank Nifty: Down by 0.09%

Bank Nifty also opened in the negative territory and closed in the red with a decline of 0.09 percent at 40,269.05. Similarly, the BSE Sensex was down by 0.55 percent and closed in the red at a low of 58,962.12.

A decline in these indices can indicate a bearish trend in the stock market, and it may be influenced by various factors such as global events, economic indicators, and company-specific news.

Indian stock market, the Nifty pharma index shed 1.3 percent, and the energy index was down by 1 percent. The metal and information technology indices each ended 0.8 percent down. However, the auto and PSU Bank indices rose 0.4 percent each.

Bank Nifty

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

The gainers included IDFC First Bank with a 1.47% increase, Bandhan Bank with a 1.41% increase, HDFC Bank with a 0.63% increase, Punjab National Bank with a 0.42% increase and Kotak Bank of India with a 0.35% increase. On the other hand, the biggest losers in the sector included Axis Bank with a 1.09% decline, State Bank of India with a 0.99% decline, AU Bank with a 0.70% decline, IndusInd Bank with a 0.45% decline and Bank of Baroda with a 0.44% decline. These results suggest that some banking stocks performed better for the day.

Advance Decline Ratio

Today, the advance-decline ratio was 0.96, and the market breadth was negative. The volatility index India Vix increaded by 1.04 percent to settle at 14.02 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1105
Decliners – 1154
52Wk High –  22
52Wk Low – 219
High Band Hitters – 55
Low Band Hitters – 57
200d SMA – 17375
50d SMA – 17904
20d SMA – 17739

Top Gainers and Losers Stocks

The top gainers were Adani Enterprises (+14.90%), Adani Ports (+5.11%), Asian Paint (+3.02%), Britannia (+1.81%), and M&M (+1.43%).

The top losers were Cipla (-4.67%), Hindalco (-3.00%), Dr. Reddy (-2.42%), ONGC (-2.09%), and Reliance (-2.02%).

Top Gainers and Losers Sector

The top gainers sectors were Media (+2.46%), Realty (+1.14%), Auto (+0.45%), and Consumer Durables (+0.43%).

The top losers sectors were Oil & Gas (-1.34%), Pharma (-1.31%), IT (-0.85%), Metal (-0.84%), and FMCG (-0.22%).

The Nifty Midcap 50 was up by 0.46 percent, while the Nifty Small Cap 50 at 0.00 percent on the day.

The Nifty Midcap 50 index currently closed at 8,456.70, while the Nifty Small Cap 50 index currently closed at 4,127.40.

SECTORS – NOTABLE ACTION
MEDIA +2.46%
REALTY +1.14%
AUTO +0.45%
OIL & GAS -1.34%
PHARMA -1.31%
IT -0.85%

Stocks Ban List

F&O ban, Securities and Exchange Board of India (SEBI) has not put any stocks under the F&O ban for the current trading day.

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.

GNFC has a possibilites of entery in a ban list.

Daily Pivots

As per the above pivots data, 17220 to 17420 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty 50 Closes in RED for Sixth Consecutive Day
Volatile Market on the Monthly Expiry
Indian Stocks Rattled by Overnight Slump in US Markets

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