Nifty’s Flat Opening and Narrow Consolidation A Marginal Red Finish

At the close, the Nifty 50 was at 19,731.75 down by 0.10%

Amidst a day of market turbulence, India’s benchmark indices closed on a negative note. The NSE Nifty 50 began with a 0.10% dip and eventually ended in the red, slipping below the 19,800 mark. The market’s trajectory was shaped by mixed global cues, initially setting a negative tone that briefly pushed Nifty below 19,700. However, a recovery followed, leading to range-bound trading throughout the session. The ongoing Middle East conflict introduced an element of uncertainty into the global stock market, causing Indian equity indices to oscillate between gains and losses.

Despite persistent geopolitical tensions, mid- and small-cap indices saw an increase due to bargain hunting driven by festival-related demand and positive Q2 results.

It’s crucial to monitor oil prices, as sustained increases could potentially raise yields and operational costs, putting pressure on margins in H2FY24. As the earnings season picks up, investors are leaning toward a bottom-up approach for portfolio restructuring.

Investors are proceeding cautiously in an uncertain global environment, where the Israel-Palestine conflict, weak overseas fundamentals, and ongoing FII selling collectively contribute to subdued market sentiment. Staying informed about these factors is vital for making well-considered investment decisions.

Bank Nifty: Down by 0.14%

The Bank Nifty, representing the financial sector, opened the trading day in the red, concluding at 44,225.90, signifying a 0.14% decline. In tandem, the broader market, as measured by the BSE Sensex, faced challenges, closing with a 0.17% loss and reaching a low point of 66,166.93.

The market maintained a persistent bearish sentiment, with both major indices struggling to remain in positive territory.

In the sectorial landscape, the metal sector showed substantial gains, with an impressive surge of 0.91%. Key players in this sector contributed to this growth, with NMDC Ltd. gaining an impressive 3.35% and Hindustan Copper Ltd. boasting a substantial 1.75% increase.

Conversely, the pharmaceutical sector experienced a setback, with a 0.46% decrease. Prominent companies within this sector, including Gland Pharma Ltd. reporting a loss of -3.37% and Divi’s Laboratories Ltd. seeing a decline of -2.28%.

Foreign Institutional Investors (FII/FPI) recorded a buy value of Rs. 7,013.59 crore, while their sale value amounted to Rs. 7,607.25 crore. This resulted in a net value of -Rs. 593.66 crore, indicating a net selling position by FIIs/FPIs.

On the domestic front, Domestic Institutional Investors (DIIs) exhibited a buy value of Rs. 6,737.67 crore, with a sale value of Rs. 5,553.43 crore. This translates to a positive net value of Rs. 1,184.24 crore, reflecting a net buying stance by DIIs.

Bank Nifty

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

The gainers included Bandhan Bank with a 1.41% increase, Axis Bank with a 1.12% increase, Bank of Baroda with a 1.03% increase, and IDFC First Bank with a 0.83% increase. On the other hand, the biggest losers in the sector included IndusInd Bank with a 1.21% decline, AU Bank with a 1.04% decline, Kotak Bank with a 0.68% decline, Federal Bank with a 0.47% decline, and HDFC Bank with a 0.24% decline. These results suggest that some banking stocks not performed better for the day.

Buzz

Rupee Gains 2 Paise Against US Dollar Amid Geopolitical Tensions

The Indian rupee displayed resilience in the foreign exchange market, closing 2 paise higher at 83.28 (pro) against the US dollar on Monday. This modest appreciation can be attributed to positive macroeconomic data that supported the rupee. However, it’s important to note that geopolitical tensions, notably the Israel-Hamas conflict, had a dampening effect on investor sentiment.

At the interbank foreign exchange market, the rupee began the day at 83.25 against the US dollar, fluctuating within a range of 83.24 to 83.28 during the trading session. Ultimately, it concluded the day 2 paise higher than the previous close.

In the broader global context, the US dollar saw a slight easing as the US and its allies made efforts to contain the Hamas-Israel conflict. This development led to a reduction in safe-haven demand for the greenback.

Additionally, the global oil benchmark, Brent crude futures, experienced a marginal decline, dropping 0.08% to reach $90.82 per barrel. These events collectively underscore the intricate interplay of geopolitical factors and economic data in influencing currency and commodity markets. Investors should closely monitor these dynamics for informed decision-making in an ever-changing global landscape.

Buzzing

The share price of Hero MotoCorp Ltd. has seen a positive movement, increasing by 1.99% from its previous close of Rs 3,098.45 to reach a last traded price of Rs 3,160.00. Notably, the company has demonstrated impressive annual revenue growth at 15.35%, outperforming its 3-year CAGR of 4.97%. Hero MotoCorp also maintains a robust financial position, with less than 1% of operating revenues allocated towards interest expenses and a reasonable 6.59% spent on employee costs for the year ending on March 31, 2023.

Conversely, Divi’s Laboratories Ltd. has experienced a decline in its share price by -2.28% from the previous close of Rs 3,735.35, with a last traded price of Rs 3,650.00. Notably, the company witnessed a weekly MACD crossover on the week ending October 13, 2023, with an average price decline of -4.78% within 7 weeks of this signal over the last 10 years. Furthermore, sales have de-grown by 10.6%, marking the first revenue contraction in the last 3 years. Similar to Hero MotoCorp, Divi’s Laboratories Ltd. has also managed its expenses well, allocating less than 1% of operating revenues to interest expenses but spending a higher 12.55% on employee costs for the year ending on March 31, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 1.13, and the market breadth was positive. The volatility index India Vix increased by 5.03 percent to settle at 11.15 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1299
Decliners – 1153
52Wk High –  174
52Wk Low – 15
High Band Hitters – 137
Low Band Hitters – 65
200d SMA – 18563
50d SMA – 19611
20d SMA – 19716

Top Gainers and Losers Stocks

The top gainers were Hero MotoCorp (+1.99%), JSW Steel (+1.75%), Tata Steel (+1.64%), LTIM (+1.39%), and UPL  (+1.30%).

The top losers were Divi’s Laboratories (-2.28%), Nestle India (-1.81%), TCS (-1.40%), IndusInd Bank (-1.21%), and Adani Ports (-1.20%).

Top Gainers and Losers Sector

The top gainers sector were Metal (+0.91%), Consumer Durables (+0.76%), Auto (+0.45%), and Oil & Gas (+0.27%).

The top losers sector were Pharma (-0.46%), Realty (-0.34%), FMCG (-0.23%), Media (-0.23%), and IT (-0.18%).

SECTORS – NOTABLE ACTION
METAL +0.91%
CONSUMER DURABLES +0.76%
AUTO +0.45%
PHARMA -0.46%
REALTY -0.34%
FMCG -0.23%

Stocks Ban List

(SEBI) F&O ban list (DELTACORP open at -133.40 and close at -128.00), (BALRAMCHIN open at +417.10 and close at +423.20), (SUNTV open at -632.75 and close at +644.55), (SAIL open at +89.00 and close at +89.20), (BHEL open at -128.10 and close at +131.15), (INDIACEM open at -225.05 and close at -218.85), (HINDCOPPER open at +157.40 and close at +160.15), (IBULHSGFIN open at -172.00 and close at -171.65), (MANAPPURAM open at -145.55 and close at -143.90), (PNB open at +75.15 and close at +75.25), and (L&TFH open at -132.90 and close at +134.90) are not currently on 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.

METROPOLIS, NMDC, RBLBANK, ESCORTS, GNFC, CHAMBLFERT, and MCX stock has the possibilities of enterance in the ban list.

MANAPPURAM, PNB, and L&TFH stock has the possiblities of exit from ban list.

Daily Pivots

As per the above pivots data, 19680 to 19790 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Selling Pressure Hits Market as IT Giants See Lower Demand
Tech Stocks Tumble Nifty’s Impressive Run Meets a Roadblock
Market Soars with Steady Gains Sector-Wide Buying Keeps Momentum Alive

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