|Nifty MidCap 50||11,033.10||+140.10||+1.29%|
|Nifty SmallCap 50||5,825.75||+132.80||+2.33%|
At the close, the Nifty 50 was at 19,047.25 up by 1.01%
In recent trading, the NSE Nifty 50 demonstrated strength, opening positively and gaining 1.01 percent, with the Nifty index surpassing 19,000 points. This turnaround was primarily driven by increased buying activity, effectively ending a six-day losing streak. Nevertheless, global markets remain cautious due to ongoing concerns about the Middle East situation and lingering unease surrounding bond yields, despite some adjustments that have already been factored in.
The Indian domestic market showed a significant recovery compared to the sharp corrections witnessed in the previous trading session. Several factors contributed to this resurgence, including reduced selling by foreign institutional investors (FIIs), stabilization in the currency market, and a decrease in global bond yield volatility. Regarding earnings, Q2 results have met expectations, but there is tempered optimism as the market prepares for potential earnings downgrades. The looming possibility of a global economic slowdown, driven by rising interest rates and geopolitical risks, continues to be a prominent concern.
While domestic equities rallied with strong buying support and maintained the 19,000 level, it’s important to acknowledge that several negative factors, such as the Israel-Hamas conflict, increasing US bond yields, FII fund outflows, and apprehensions about interest rate hikes, continue to cast uncertainty over the markets. Moving forward, investors should be prepared for ongoing volatility in the financial landscape.
Bank Nifty: Up by 1.19%
The Bank Nifty, following a significant decline, staged an impressive recovery during the week. It began positively and closed with a notable gain of 1.19 percent, reaching a level of 42,782.00. Similarly, the BSE Sensex displayed resilience, surging 1.01 percent and closing at a remarkable high of 63,782.80.
In sectorial performance, the Media sector experienced substantial growth, posting an impressive 2.58% increase. This growth was largely driven by outstanding performances from key companies within the sector. Zee Entertainment Enterprises Ltd. recorded a notable gain of 4.42%, while Network18 Media & Investments Ltd. and Nazara Technologies Ltd. saw gains of 0.73% and 0.94%, respectively. Notably, all sectors closed in positive territory.
In terms of foreign institutional investor (FII) activity, the buy value amounted to Rs. 9,360.25 Crores, while the sale value stood at Rs. 10,860.38 Crores, resulting in a net value of -Rs. 1,500.13 Crores. This negative net value indicates that foreign institutional investors have sold more than they have bought during this period.
Conversely, domestic institutional investor (DII) activity revealed a buy value of Rs. 7,135.99 Crores and a sale value of Rs. 6,822.30 Crores, leading to a positive net value of Rs. 313.69 Crores. This indicates that domestic institutional investors have a net positive position, signifying they have purchased more than they have sold.
The Nifty Banking sector had some gainers and some losers for the day.
The gainers included Punjab National Bank with a 4.80% increase, Bank of Baroda with a 4.41% increase, Axis Bank with a 2.87% increase, State Bank of India with a 2.69% increase, and IDFC First Bank with a 2.06% increase. These results suggest that some banking stocks performed better for the day.
Rupee Steadies Amid External and Internal Pressures
The Indian rupee exhibited resilience on Friday, putting a halt to its three-day decline against the US dollar, as it settled flat at 83.25 (pro). This stabilization came as a result of positive movements in the domestic equities market. However, the rupee’s ascent was offset by the relentless surge in crude oil prices, which remains a significant external factor impacting the currency’s performance.
The rupee, in recent sessions, found itself confined to a narrow trading range, a reflection of sustained selling pressure from foreign equity investors, placing added stress on the Indian currency. At the interbank foreign exchange market, the rupee opened at 83.24, moving within a tight band of 83.22 to 83.25 before ultimately closing unchanged at Thursday’s level of 83.25 (pro) against the US dollar.
This marks the third consecutive day of decline for the rupee, having weakened by 8 paise against the dollar on Thursday. Prior to this, it had recorded a 4 paise drop on Monday, followed by a minor 1 paisa dip on Wednesday. The currency’s journey reflects a delicate balance between domestic and international influences, making it crucial for market participants to stay vigilant and informed in this dynamic landscape.
Coal India Ltd. witnessed a notable 3.11% increase in its share price, rising from its previous close of Rs 305.25 to Rs 314.75. However, it’s worth noting that a sell signal emerged as the 14-day moving crossover trended yesterday, often associated with a short-term bearish sentiment. Historical data suggests an average price decline of -3.1% within 7 days of this signal over the past 5 years. Despite this, Coal India Ltd. has showcased impressive annual revenue growth, with a 27.45% increase, outperforming its 3-year compound annual growth rate (CAGR) of 12.19%. Intriguingly, over the last 13 years, only 0.5% of trading sessions saw intraday declines surpassing 5%, underlining the stock’s historical resilience.
On the other hand, UPL Ltd. experienced a slight decline of -0.40% in its share price, dropping from Rs 561.05 to Rs 558.80. The company’s performance is further impacted by a concerning quarter-on-quarter revenue decline of 45.98%, marking the lowest in the last 3 years. Additionally, UPL Ltd. allocated 5.53% of its operating revenues toward interest expenses and 9.44% towards employee costs in the fiscal year ending on March 31, 2023.
Advance Decline Ratio
Today, the advance-decline ratio was 4.04, and the market breadth was positive. The volatility index India Vix decreased by 7.03 percent to settle at 10.91 and the FIIs were net sellers today.
DAILY MARKET ACTION
Advancers – 1918
Decliners – 475
52Wk High – 48
52Wk Low – 16
High Band Hitters – 145
Low Band Hitters – 44
200d SMA – 18613
50d SMA – 19588
20d SMA – 19529
Top Gainers and Losers Stocks
The top gainers were Coal India (+3.11%), HCL Technologies (+2.90%), Axis Bank (+2.87%), SBIN (+2.69%), and Bajaj Auto (+2.61%).
The top losers were UPL (-0.40%), ITC (-0.10%), Hindalco (-0.05%), BPCL (-0.04%), and Asian Paint (-0.04%).
Top Gainers and Losers Sector
The top gainers sector were Media (+2.58%), Realty (+1.95%), Auto (+1.35%), Oil & Gas (+1.28%), and IT (+1.24%).
SECTORS – NOTABLE ACTION
Stocks Ban List
Today, the Securities and Exchange Board of India (SEBI) has not included any stock in the F&O ban list.
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.
As per the above pivots data, 18940 to 19120 is the Nifty 50 trading range.
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This article is only for educational purposes and is not an investment advice.