NSE Nifty 50 Remains Range-Bound, Closes Slightly Lower Amidst Volatility

At the close, the Nifty 50 was at 19,802.00 down by 0.05%

The trading day for the NSE Nifty 50 witnessed a positive start but concluded with a marginal 0.05% dip, closing the session in the red. Market volatility led to a relatively flat closure for the Indian benchmark indices.

Although the Nifty surged initially, breaching the 19,850 mark, sustaining this upward momentum proved challenging. Throughout the day, maintaining gains became a struggle, ultimately succumbing to selling pressures at higher levels, resulting in a modest 10-point downturn by the session’s end.

Persistent within a range, the market sought catalysts to break decisively beyond the crucial 19,800 level. Despite this uncertainty, mid- and small-cap stocks witnessed substantial buying activity. Investors strategically targeted underperforming stocks, swiftly engaging in purchasing these segments.

Favorable signs for broader market recovery included declining oil prices and eased US bond yields, sparking optimism among investors. Conversely, in European markets, a mixed sentiment prevailed, with anticipation surrounding significant events like the ECB minutes and manufacturing index data release.

The market continues its quest for direction, with participants closely monitoring global cues and potential triggers to guide a more decisive move beyond current levels. The strength observed in mid- and small-cap sectors indicates nuanced investor strategies amid the ever-evolving market dynamics.

Bank Nifty: Up by 0.29%

The Bank Nifty began the day positively, with a 0.29% increase, sustaining this upward trend and closing at 43,577.50, resiliently finishing in the green. In contrast, the BSE Sensex experienced a slight 0.01% decline, concluding the trading session at 66,017.81, albeit with a modest decrease after initial struggles to maintain gains.

In the sectoral landscape, the real estate segment showed robust momentum, surging by 1.03%. Leading the gains, The Phoenix Mills Ltd. soared impressively by 3.05%, demonstrating remarkable market performance. Similarly, Oberoi Realty Ltd. experienced notable growth, marking a substantial uptick of 2.01%.

Conversely, the pharmaceutical industry faced a downturn, emerging as the top loser with a decline of 1.57%. Within this sector, Cipla Ltd. encountered a significant decrease of -7.64%, highlighting inherent challenges. Likewise, Aurobindo Pharma Ltd. saw a downturn, recording a loss of -2.28%.

The Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) reflected a net investment of Rs. 255.53 crore in the Indian market. Their buying activity amounted to Rs. 7,348.72 crore, slightly higher than their sales at Rs. 7,093.19 crore. Conversely, the Domestic Institutional Investors (DII) exhibited robust net buying with an impressive Rs. 457.39 crore. Their buying activity totaled Rs. 6,234.47 crore, surpassing sales at Rs. 5,777.08 crore.

Bank Nifty

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

The gainers included IDFC First Bank with a 1.26% increase, Federal Bank with a 1.13% increase, IndusInd Bank with a 1.13% increase, HDFC Bank with a 0.60% increase, and State Bank of India with a 0.28% increase. On the other hand, the biggest losers in the sector included Kotak Bank with a 0.33% decline, and Bank of Baroda with a 0.23% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Rupee Marginally Weakens Against US Dollar Amidst FII Outflows and Market Volatility

The Indian rupee experienced a slight dip of 2 paise, settling at 83.34 against the US dollar on Thursday. Factors contributing to this decline included Foreign Institutional Investor (FII) outflows coupled with a lackluster performance in the domestic equity market.

Amidst this scenario, external influences such as a decrease in oil prices by over 1% and a relative weakening of the US currency against major global counterparts helped cap the rupee’s slide. Trading within a narrow range of 83.29 to 83.36 during the day at the interbank foreign exchange market, the rupee witnessed marginal fluctuations in its valuation.

Ultimately, the rupee closed marginally lower at 83.34 against the dollar, compared to its previous closure at 83.32 on Wednesday. Concurrently, the dollar index, measuring the greenback’s strength against six currencies, exhibited a 0.31% decline, standing at 103.60.

The dollar’s recent strength, as indicated by the Federal Reserve meeting minutes projecting a more hawkish tone from the Federal Open Market Committee (FOMC), contributed to fluctuations in the rupee’s value. Additionally, Brent crude futures, the global oil benchmark, experienced a decrease of 1.45%, settling at $80.77 per barrel.

The rupee’s minor setback against the dollar reflects ongoing market volatility and external factors influencing currency movements, warranting close monitoring for potential implications on trade and investments.

Buzzing

Bharat Petroleum Corporation Ltd. observed an upward movement in its share price, rising by 2.23% from its previous closing value of Rs 402.10 to reach Rs 411.05. A buy signal emerged with a bullish trend, evident from a 5-day moving average crossover that manifested recently. Historical data within the past 5 years revealed an average price gain of 2.9% within 7 days following this signal. Notably, only 1.79% of trading sessions in the last 19 years saw intraday gains exceeding 5%.

Conversely, UltraTech Cement Ltd. experienced a decline in its share price by -1.77% from its prior closing figure of Rs 8,759.90, settling at Rs 8,604.55. Despite a recent bullish signal arising from a 10-day moving average crossover on Nov 21, 2023, the stock showed an average price gain of 2.84% within 7 days historically. Additionally, another bullish signal emerged from a 5-day moving average crossover, historically averaging a 2.65% gain within 7 days. Similarly, only 1.62% of trading sessions in the last 19 years demonstrated intraday gains surpassing 5%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.18, and the market breadth was positive. The volatility index India Vix decreased by 4.63 percent to settle at 11.32 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1316
Decliners – 1113
52Wk High –  129
52Wk Low – 13
High Band Hitters – 107
Low Band Hitters – 50
200d SMA – 18750
50d SMA – 19596
20d SMA – 19413

Top Gainers and Losers Stocks

The top gainers were Hero MotoCorp (+4.52%), Bajaj Auto (+3.14%), BPCL (+2.23%), IndusInd Bank (+1.13%), and Eicher Motors (+1.07%).

The top losers were Cipla (-7.64%), UltraTech Cement (-1.77%), SBI Life (-1.54%), LTIM (-1.50%), and Larsen & Toubro (-1.01%).

Top Gainers and Losers Sector

The top gainers sector were Realty (+1.03%), Oil & Gas (+0.90%), Metal (+0.53%), Media (+0.47%), and Auto (+0.36%).

The top losers sector were Pharma (-1.57%), IT (-0.59%), and Consumer Durables (-0.43%).

SECTORS – NOTABLE ACTION
REALTY +1.03%
OIL & GAS +0.90%
METAL +0.53%
PHARMA -1.57%
IT -0.59%
CONSUMER DURABLES -0.43%

Stocks Ban List

(SEBI) F&O ban list (HINDCOPPER open at -158.25 and close at +162.15), (IBULHSGFIN open at -183.25 and close at +185.65), (RBLBANK open at -234.50 and close at +238.85), (INDIACEM open at -218.10 and close at -217.30), (MANAPPURAM open at -153.05 and close at +152.40), (MCX open at -2864.00 and close at +2926.30), (ZEEL open at -250.90 and close at +249.85), (NMDC open at +173.00 and close at +172.40), and (BHEL open at +141.50 and close at +142.75) 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.

HINDPETRO, BALRAMCHIN, PNB, BIOCON, SAIL, TATACHEM, L&TFH, PEL, and NATIONALUM stocks has the possibilities of enterance in the ban list.

ZEEL, NMDC, and BHEL stocks has the possibilities of exit from ban list.

Daily Pivots

As per the above pivots data, 19750 to 19880 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty bounces back from mid-session selling as last-hour buying boosts index
Nifty Surges with a Gap Up Opening, Gains 89 Points by Closing

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