NSE Nifty 50 Edges Closer to All-Time High Amid Flat-to-Positive Trading

At the close, the Nifty 50 was at 23,264.85 up by 0.02%

On June 11, the NSE Nifty 50 commenced trading on a positive note, marking a slight increase of 0.02%. The day witnessed volatile market conditions, ultimately culminating in a marginal change, with the Nifty closing at 23,264.85, just above the 23,250 mark. While the benchmark indices flirted with record highs earlier in the session, they relinquished gains towards the day’s end, settling flat.

Despite opening with marginal gains, the Nifty index experienced consolidation throughout the session, inching closer to the 23,400 level before concluding with a modest increase of 5.65 points. The formation of a small negative candle on the daily chart, coupled with an upper shadow, hints at the possibility of a minor downward correction in the short term.

The Nifty encountered resistance around the 23,400 levels, witnessing choppy movement before closing the day marginally positive. Intraday weakness emerged near the aforementioned hurdle, resulting in the erasure of earlier gains.

The market remained sideways on Tuesday, lacking a clear directional move. Sentiment may continue in this vein until a breakout from the 23,150-23,350 range occurs. Any decisive move beyond this range could indicate the future trajectory of the market.

Investor sentiment was tempered by uncertainties surrounding the Federal Reserve’s policy decision and upcoming consumer price inflation data. Additionally, concerns regarding potential US rate cuts, despite strong job data, have led to increased scrutiny of global indicators. The focus now shifts to key policy decisions from the US Federal Reserve and the Bank of Japan, as well as inflation data from both countries. These developments are expected to provide insights into the future direction of rate cuts and market movements.

Bank Nifty: Down by 0.15%

The Bank Nifty commenced with losses, opening in the red and declining by 0.15%. It concluded the session in negative territory, closing at 49,705.75. Similarly, the BSE Sensex saw a marginal decline of 0.04%, also closing in the red at a low of 76,456.59.

In the sectorial front, the media sector has shown robust performance, surging by 1.75% recently. Leading the charge, Nazara Technologies Ltd. experienced a notable increase, jumping by 6.19%. Similarly, Sun TV Network Ltd. reported a substantial gain of 4.09%.

Conversely, the pharmaceutical sector emerged as the day’s top loser, slipping by 0.43%. Within this sector, Divi’s Laboratories Ltd. saw a decline of 1.27%, while Lupin Ltd. dropped by 1.25%.

Foreign Institutional Investors (FII/FPI) recorded a buy value of Rs. 15,527.24 crore, while their sale value amounted to Rs. 15,638.28 crore, resulting in a net value of -Rs. 111.04 crore.

On the other hand, Domestic Institutional Investors (DII) exhibited robust activity, with a buy value of Rs. 14,162.60 crore and a sale value of Rs. 10,969.31 crore, leading to a net value of Rs. 3,193.29 crore.

Bank Nifty

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

The gainers included Federal Bank with a 1.43% increase, Punjab National Bank with a 0.59% increase, State Bank of India with a 0.44% increase, AU Bank with a 0.43% increase, and HDFC Bank with a 0.11% increase.

On the other hand, the biggest losers in the sector included Kotak Bank with a 1.30% decline, Bank of Baroda with a 0.71% decline, Bandhan Bank with a 0.67% decline, ICICI Bank with a 0.61% decline, and Axis Bank with a 0.58% decline. These results suggest that some of the banking stocks performed better for the day.

Rupee Weakens Amid Strong US Dollar and High Crude Oil Prices

On Tuesday, the Indian rupee concluded trading lower by 6 paise, settling at 83.56 against the US dollar. This decline was influenced by a muted trend in domestic equities and the robust strength of the American currency in international markets.

The US dollar strengthened due to increased demand from oil importers and stronger-than-expected economic data from the United States. Additionally, elevated crude oil prices put further pressure on the Indian currency. At the interbank foreign exchange market, the rupee opened at 83.49, hit an intra-day low of 83.58, and ultimately settled at 83.56.

On Monday, the rupee had already dipped by 10 paise, closing at 83.50 against the US dollar. Analysts expect the rupee to trade with a slight negative bias due to the strong US dollar and high crude oil prices. However, positive global market trends and fresh foreign inflows might offer some support at lower levels.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six major currencies, was up by 0.10%, trading at 105.25. On the commodities front, Brent crude futures, the global benchmark for oil, saw a slight decline of 0.05%, trading at $81.59 per barrel.

The interplay between a strong US dollar, high crude oil prices, and domestic equity trends will likely continue to impact the rupee’s performance. Investors and traders should keep an eye on these factors to navigate the forex market effectively.

Stocks Highlights

The Oil and Natural Gas Corporation Ltd. (ONGC) experienced a notable increase in its share price, rising by 5.69% from its previous close of Rs 259.15 to a last traded price of Rs 273.90. This upward movement is significant considering that in the past 19 years, only 1.32% of trading sessions have seen intraday declines of more than 5%. Furthermore, ONGC delivered a return on equity (ROE) of 14.6% for the year ending March 31, 2024, outperforming its five-year average of 12.06%. The company managed its expenses efficiently, allocating 1.59% of its operating revenues to interest expenses and 1.14% to employee costs. Over the past three years, ONGC’s stock has returned 108.91%, significantly outpacing the Nifty 100 index, which returned 52.57%.

In contrast, Kotak Mahindra Bank Ltd. saw a decrease in its share price, dropping by 1.30% from Rs 1,745.65 to Rs 1,722.90. Despite this, the bank’s long-term performance indicators remain strong. Over the last 19 years, only 2.37% of trading sessions recorded intraday declines exceeding 5%. The bank’s loan book grew by 19.84% year-over-year, surpassing its five-year compound annual growth rate (CAGR) of 11.49%. Additionally, Kotak Mahindra Bank reported an annual revenue growth of 38.35%, outperforming its three-year CAGR of 18.19%. However, the stock has returned -2.09% over the past three years, underperforming the Nifty 100 index’s return of 52.57%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.69, and the market breadth was positive. The volatility index India Vix decreased by 9.95 to settle at 14.77 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1645
Decliners – 972
52Wk High – 162
52Wk Low – 13
High Band Hitters – 173
Low Band Hitters – 38
200d SMA – 21170
50d SMA – 22518
20d SMA – 22714

Top Gainers and Losers Stocks

The top gainers were ONGC (+5.69%), Tata Motors (+1.75%), Larsen & Toubro (+1.59%), Adani Ports (+1.59%), and Maruti (+1.20%).

The top losers were Kotak Bank (-1.30%), Divi’s Laboratories (-1.27%), ITC (-0.95%), Reliance (-0.94%), and Dr. Reddy (-0.90%).

Top Gainers and Losers Sectors

The top gainers sector were Media (+1.75%), Oil & Gas (+1.33%), Realty (+1.13%), Auto (+0.83%), and Consumer Durables (+0.25%).

The top losers sector were Pharma (-0.43%), FMCG (-0.34%), Financial Services (-0.13%), and Metal (-0.06%).

SECTORS – NOTABLE ACTION
MEDIA +1.75%
OIL & GAS +1.33%
REALTY +1.13%
PHARMA -0.43%
FMCG -0.34%
FINANCIAL SERVICES -0.13%

Stocks Ban List

(SEBI) F&O ban list (INDIACEM open at +218.15 and close at -216.16), (BALRAMCHIN open at -398.00 and close at +405.40), (SAIL open at -151.12 and close at +151.01), and (ZEEL open at +165.03 and close at +165.23) 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.

HINDCOPPER, BANDHANBNK, PEL, PNB, and GMRINFRA stocks has the possibilities of entrance in the ban list.

ZEEL stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 23100 to 23450 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty’s Winning Streak Cut Short by Market Volatility After Ministerial Reshuffle
RBI’s Revised GDP Forecast Sparks Nifty50’s Upward Trend
IPO Landscape: A few success storied and some failure stories of the Indian companies

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