At the close, the Nifty 50 was at 18,534.40 down by 0.53%
NSE Nifty 50 commenced trading at a diminished level and experienced a decrease of 0.53 percent throughout the day, concluding the session in a negative territory. Notably, the Nifty index settled below the 18550 mark.
Based on various economic indicators, the Indian economy is currently undergoing a strong rebound, resulting in an upward trajectory for domestic equity markets. However, this rally occasionally faces obstacles due to adverse signals from international counterparts, as witnessed today. Apprehensions regarding a potential recession and the possibility of interest rate increases in Western markets are impacting the domestic market, yet it continues to outperform despite these challenges.
In terms of sector performance, Realty emerged as the top gainer, recording an increase of 0.76%. Within this sector, Brigade Enterprises Limited observed a gain of 4.36%, Macrotech Developers Limited witnessed a gain of 3.73%, and Mahindra Lifespace Developers Limited experienced a gain of 2.63%. On the other hand, Oil & Gas emerged as the top loser, with a decline of 1.26%. Within this sector, Adani Total Gas Limited registered a loss of 4.92%, Oil & Natural Gas Corporation Limited saw a loss of 3.24%, and Aegis Logistics Limited suffered a loss of 2.21%.
As of 31st May 2023, Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) recorded a Buy Value of 65,024.36 (Rs. Cr.) and a Sale Value of 61,618.46 (Rs. Cr.), resulting in a Net Value of 3,405.90 (Rs. Cr.). On the other hand, Domestic Institutional Investors (DII) reported a Buy Value of 11,726.46 (Rs. Cr.), a Sale Value of 14,254.98 (Rs. Cr.), and a Net Value of -2,528.52 (Rs. Cr.) during the same period.
Bank Nifty: Down by 0.69%
Bank Nifty demonstrated a bearish trend as it commenced in a negative position and experienced a decline of 0.69 percent, ultimately closing in the red at a value of 44,128.15. Likewise, the BSE Sensex exhibited a similar pattern, with a decrease of 0.55 percent, culminating in a red finish at a relatively low level of 62,622.24.
The financial markets experienced a wave of profit-taking, leading to a decline of more than half a percent, as they closely followed a combination of conflicting signals. Following an initial downward movement, the Nifty index remained predominantly bearish throughout the trading session. The sentiment was weighed down by downward pressure observed in the energy, banking, and metal sectors, while the pharma and realty sectors demonstrated resilience and closed with gains. Interestingly, despite the prevailing conditions, the broader indices displayed noticeable strength and recorded gains ranging from 0.4% to 1%. The presence of global headwinds, particularly emanating from the US markets, has contributed to intermittent volatility, yet the overall upward trend remains intact. Given the circumstances, it is advisable to prioritize position management while maintaining a positive outlook.
In light of the aforementioned scenario, it is prudent to adopt a strategic approach that emphasizes position management and upholds a favorable bias. By carefully monitoring and adjusting positions in accordance with market dynamics, investors can navigate the current environment effectively. While external factors from the global markets may introduce some volatility in the short term, the underlying upward trend should not be overlooked. Therefore, it is recommended to stay vigilant, maintain a positive mindset, and execute investment decisions in a manner that aligns with the prevailing market conditions.
The Nifty Banking sector had some gainers and some losers for the day.
The gainers included Kotak Bank with a 1.87% increase, Bank of Baroda with a 0.90% increase, Punjab National Bank with a 0.78% increase, IDFC First Bank with a 0.42% increase and AU Bank with a 0.23% increase. On the other hand, the biggest losers in the sector included Axis Bank with a 2.13% decline, HDFC Bank with a 1.56% decline, IndusInd Bank with a 0.78% decline, Bandhan Bank with a 0.45% decline, and Federal Bank with a 0.12% decline. These results suggest that some banking stocks performed better for the day.
The share price of Tech Mahindra Ltd. exhibited an increase of 2.33% compared to its previous closing value of Rs 1,098.40. The most recent traded price of Tech Mahindra Ltd. stock stands at Rs 1,123.95. Over a period of 3 years, the stock has generated a return of 107.07%, surpassing the return of 89.46% offered by the Nifty 100 index. Yesterday, a 5-day moving crossover occurred, indicating a potential signal. Historical data shows an average price decline of -2.19% within 7 days of this signal over the past 5 years. Furthermore, the company has demonstrated an impressive annual revenue growth of 18.57%, outperforming its 3-year compound annual growth rate (CAGR) of 12.41%.
The share price of Oil And Natural Gas Corporation Ltd. experienced a decline of -3.24% in comparison to its previous closing value of Rs 158.85. The most recent traded price of Oil And Natural Gas Corporation Ltd. stock stands at Rs 153.70. Over a span of 3 years, the stock has delivered a return of 90.93%, outperforming the return of 89.46% offered by the Nifty 100 index. On May 29, 2023, a 50-day moving crossover occurred, potentially indicating a signal. Historical data reveals an average price decline of -4.59% within 30 days of this signal over the past 5 years. Additionally, the company has exhibited an impressive annual revenue growth of 38.94%, surpassing its 3-year compound annual growth rate (CAGR) of 19.31%. It is worth noting that only 1.34% of trading sessions in the last 18 years have witnessed intraday declines exceeding 5%.
Indian rupee experienced a depreciation of 3 paise against the US dollar, reaching a value of 82.70. This decline can be attributed to the strength of the US dollar against its major counterparts in the global markets, as well as subdued sentiments prevailing in both domestic and international equity markets. The US dollar was trading at an elevated level of 104, supported by positive developments surrounding the US debt ceiling bill, which boosted investor confidence. However, market participants also harbored concerns regarding the upcoming release of payroll data scheduled for Friday.
At the interbank foreign exchange, the Indian rupee began the day on a weaker note at 82.71 against the US dollar. Throughout the session, the currency witnessed a range of fluctuations, hitting a low of 82.73 and reaching a high of 82.68 before settling at 82.70, reflecting a decrease of 3 paise compared to its previous closing value. During the preceding trading session, the Indian rupee had concluded at 82.67 against the US dollar.
Advance Decline Ratio
Today, the advance-decline ratio was 1.05, and the market breadth was positive. The volatility index India Vix decreased by 0.31 percent to settle at 11.97 and the FIIs were net buyers today.
DAILY MARKET ACTION
Advancers – 1165
Decliners – 1113
52Wk High – 110
52Wk Low – 12
High Band Hitters – 67
Low Band Hitters – 53
200d SMA – 17839
50d SMA – 17831
20d SMA – 18326
Top Gainers and Losers Stocks
The top gainers were Tech Mahindra (+2.33%), Bharti Airtel (+1.90%), Kotak Bank (+1.87%), SBI Life (+1.82%), and Sun Pharmaceutical (+1.71%).
The top losers were ONGC (-3.24%), NTPC (-2.35%), Axis Bank (-2.13%), Reliance (-2.10%), and HDFC (-1.81%).
Top Gainers and Losers Sector
The top gainers sectors were Realty (+0.76%), Consumer Durables (+0.75%), Pharma (+0.58%), Media (+0.31%), and FMCG (+0.23%).
The top losers sectors were Oil & Gas (-1.26%), Financial Services (-0.82%), and Metal (-0.78%).
The Nifty Midcap 50 was up by 0.35 percent, while the Nifty Small Cap 50 was up by 1.35 percent on the day.
The Nifty Midcap 50 index currently closed at 9,539.90, while the Nifty Small Cap 50 index currently closed at 4,625.15.
SECTORS – NOTABLE ACTION
CONSUMER DURABLES +0.75%
OIL & GAS -1.26%
FINANCIAL SERVICES -0.82%
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.
BHEL, IBULHSGFIN, and ZEEL Face Possible Entry in Ban List.
As per the above pivots data, 18470 to 18610 is the Nifty 50 trading range.
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This article is only for educational purposes and is not an investment advice.