At the close, the Nifty 50 was at 16,988.40 down by 0.65%
National Stock Exchange (NSE) Nifty 50 index, which is a benchmark stock market index in India, and that it opened low and closed down by 0.65 percent. The Nifty 50 index closing below 17000 indicates a bearish sentiment in the market.
Nifty index formed a hammer-like candlestick pattern on the daily chart, which is typically viewed as a bullish reversal signal. However, the lower shadow of the candlestick was particularly long, which indicates that there was selling pressure at higher levels, preventing the price from rising further. This suggests that while buyers are present at lower support zones, there is not enough follow-up buying to push the price higher.
Indian equity indices closed lower due to negative signals from global peers and concerns about a potential global banking crisis before the Federal Reserve meeting, which was expected to decide on further interest rate hikes.
The Nifty index may see some relief in the near future, but mixed global signals are making market participants anxious, and this trend may persist in the absence of any major domestic events. However, if the Nifty index fails to sustain levels of 16,800, the positive outlook may be reversed. In the meantime, it is important for investors to prioritize risk management.
Bank Nifty: Down by 0.60%
Bank Nifty and the BSE Sensex. It appears that both indices also had a bearish day, with the Bank Nifty opening and closing in the red with a 0.60 percent decline, and the BSE Sensex also opening and closing in the red with a 0.62 percent decline.
Except for the FMCG and Media sectors, all other sectoral indices closed lower. Realty, capital goods, information technology, metal, and PSU bank sectors experienced declines of around 1-2 percent.
The Nifty Banking sector had some gainers and some losers for the day.
The gainers included Federal Bank with a 0.62% increase, Kotak Bank with a 0.39% increase, ICICI Bank with a 0.07% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 2.80% decline, AU Bank with a 2.07% decline, IndusInd Bank with a 1.99% decline, State Bank of India with a 1.85% decline, and Punjab National Bank with a 1.67% decline. These results suggest that some banking stocks not performed better for the day.
On Monday, Asian stock markets experienced a decline, following the arranged takeover of Credit Suisse by Swiss authorities amid concerns of a potential global banking crisis. The markets were also anticipating the Federal Reserve meeting to determine the possibility of further interest rate hikes, which added to the negative sentiment.
Credit Suisse is a global investment bank headquartered in Switzerland, and Adani is an Indian conglomerate with businesses in various sectors such as energy, infrastructure, and mining. The Hindenburg report you mentioned is a research report by a short-selling firm that raised concerns about Adani’s business practices and financial disclosures. Following the report’s release, Credit Suisse reportedly refused to accept Adani bonds as collateral for some transactions.
Over the last 8 trading sessions, Credit Suisse’s stock has experienced a significant decline of more than 74%. Following the government-brokered rescue deal, in which the embattled bank was sold to rival UBS Group at a valuation of just $3.25 billion, the stock plummeted by over 63%, reaching a low of SFr 0.68 on the exchange today. The deal with UBS values the stock at 0.76 a share.
Adani Group stocks have experienced a significant decline in their combined market value, having lost around 52% since the release of the Hindenburg report on January 25. In under two months, the market value of Adani stocks has decreased by approximately Rs 10 lakh crore.
On Monday, oil prices dropped to a 15-month low due to concerns over potential recession caused by risks in the global banking sector, which could lead to a decline in fuel demand. Additionally, there were apprehensions regarding a possible hike in US interest rates this week.
The May settlement of Brent crude futures witnessed a significant decline of $2.08 (2.81%) to reach $70.95 a barrel. The contract hit a low of $70.56, marking the lowest point since December 2021. In parallel, the April delivery of US West Texas Intermediate crude also dropped to $65.09 a barrel, down $1.84 (2.75%).
Advance Decline Ratio
Today, the advance-decline ratio was 0.36, and the market breadth was negative. The volatility index India Vix increased by 8.39 percent to settle at 16.01 and the FIIs were net sellers today.
DAILY MARKET ACTION
Advancers – 611
Decliners – 1692
52Wk High – 31
52Wk Low – 277
High Band Hitters – 43
Low Band Hitters – 87
200d SMA – 17448
50d SMA – 17695
20d SMA – 17399
Top Gainers and Losers Stocks
The top gainers were Hindustan Unilever (+2.51%), BPCL (+2.22%), ITC (+0.85%), Grasim (+0.61%), and Kotak Bank (+0.39%).
The top losers were Bajaj Finserv (-4.21%), Adani Enterprises (-3.44%), Bajaj Finance (-2.97%), Hindalco (-2.63%), and Tata Steel (-2.34%).
Hindustan Unilever emerged as the top gainer in the Nifty 50, recording a gain of 2.51%. However, the agro-inputs, palm oil and tea, could result in volatility in the company’s gross margins. Currently, the price of palm oil is trending higher, and this could potentially act as a headwind in the upcoming quarter.
On the other hand, Bajaj Finserv witnessed a significant decline of 4.21% and emerged as the top loser in the Nifty 50. The company allocated 13.89% of its operating revenues towards interest expenses and 9.59% towards employee costs in the financial year that ended on 31 March 2022.
Top Gainers and Losers Sector
The top gainers sectors were FMCG (+0.79%), and Media (+0.12%).
The top losers sectors were Metal (-2.35%), IT (-1.43%), Realty (-1.00%), Auto (-0.93%), and Financial Services (-0.69%).
The Nifty Midcap 50 was down by 1.13 percent, while the Nifty Small Cap 50 was down by 0.67 percent on the day.
The Nifty Midcap 50 index currently closed at 8,392.20, while the Nifty Small Cap 50 index currently closed at 4,100.25.
SECTORS – NOTABLE ACTION
Stocks Ban List
(SEBI) F&O ban list (IBULHSGFIN open at 101.60 and close at 99.00) and (GNFC open at 525.10 and close at 523.55) are not currently on the stock exchange.
The Securities and Exchange Board of India (SEBI) has banned IBULHSGFIN and GNFC 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.
BIOCON and PEL has the possiblities of entrance in the ban list.
GNFC is currently under scrutiny and has the potential to be removed from the banned list. The ban has caused significant setbacks for GNFC, but with the possibility of an exit from ban list.
As per the above pivots data, 16850 to 17100 is the Nifty 50 trading range.
Read previous -Daily Insights- here
Indian Market Remains Under Pressure: Nifty 50 Experiences Another Volatile Week
Nifty’s Rollercoaster Session! Marginal Gains of 13 Points After Positive Opening
Nifty Falls Below 17,000 as Market Loses Ground !
This article is only for educational purposes and is not an investment advice.