NSE Nifty 50 Shows Early High but Closes Lower, Dips Below 19750 Mark

NiftyTrader • August 1, 2023

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Index	Price	Change	% Chg
Nifty 50	19,733.55	–20.25	-0.10%
Nifty Bank	45,592.50	–58.60	-0.13%
BSE SENSEX	66,459.31	–68.36	–0.10%

At the close, the Nifty 50 was at 19,733.55 down by 0.10%

In today’s trading session, the NSE Nifty 50 index exhibited a promising start, opening at a high position. However, as the day progressed, it experienced a minor decline of 0.10 percent, ultimately closing in the red zone. The index ended the day below the significant mark of 19750, signaling a cautious sentiment in the market.

IT stocks witnessed a notable rally as investors held on to hopes of a soft landing for the US economy. Meanwhile, India’s manufacturing activity remained sturdy, albeit experiencing a marginal moderation for the second consecutive month in July.

However, cautious sentiment prevailed among investors as markets displayed a range-bound trend and concluded with marginal losses just before the RBI’s upcoming monetary policy announcement.

Global cues are expected to play a crucial role in the market’s trajectory, particularly due to the rapid pace of the recent rally, which has led to expensive valuations. As a result, market participants are exercising caution and selectively booking profits while maintaining an overall bullish sentiment.

Bank Nifty: Down by 0.13%

During today’s trading session, the Bank Nifty commenced on a positive note, opening in the green territory. However, as the day unfolded, the index faced a minor dip of 0.13 percent, concluding in the red zone at 45,592.50. Similarly, the BSE Sensex also encountered a slight downturn of 0.10 percent, ultimately closing in the red at a low of 66,459.31.

Today’s sectorial front shows remarkable growth in IT, with a notable 1.20% increase. Leading the pack are L&T Technology Services Ltd., recording an impressive gain of 2.94%, closely followed by Coforge Ltd. with a substantial rise of 2.80%. Conversely, Realty takes a hit with a significant 1.77% loss. Within this sector, DLF Ltd. experiences a downturn with a decrease of -3.68%, while Mahindra Lifespace Developers Ltd. also faces a decline of -3.33%.

Foreign Institutional Investors (FII/FPI) displayed active participation in the market with a Buy Value of Rs. 8,655.19 Cr. and a Sale Value of Rs. 8,748.04 Cr. However, they experienced a Net Value decrease of Rs. -92.85 Cr. On the other hand, Domestic Institutional Investors (DII) also made significant moves, recording a Buy Value of Rs. 8,156.13 Cr. and a Sale Value of Rs. 7,120.44 Cr., resulting in a Net Value of Rs. 1,035.69 Cr.

Bank Nifty

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

The gainers included Bandhan Bank with a 1.90% increase, IDFC First Bank with a 1.49% increase, Axis Bank with a 0.80% increase, and HDFC Bank with a 0.53% increase. On the other hand, the biggest losers in the sector included IndusInd Bank with a 1.50% decline, AU Bank with a 1.35% decline, State Bank of India with a 1.26% decline, Punjab National Bank with a 0.89% decline, and Bank of Baroda with a 0.49% decline. These results suggest that some banking stocks not performed better for the day.

Buzz

Rupee Gains Ground Against US Dollar Amid Muted Equities; Oil Prices Retreat on Profit-Taking

The Indian rupee showcased resilience as it rebounded from initial losses to close 3 paise higher at 82.26 (pro) against the US dollar on Tuesday, while domestic equities remained relatively stable.

Forex traders observed a subdued pattern in the rupee’s movement as the dollar index gained strength, resulting in lower valuations for Asian currencies against the American currency.

At the interbank foreign exchange market, the rupee began the day at 82.32 against the US dollar and ultimately settled at 82.26 (pro) compared to the previous close.

Throughout the day, the rupee experienced an intra-day high of 82.24 and a low of 82.33, reflecting the currency’s fluctuating performance.

On a separate note, oil prices witnessed a slight decline on Tuesday due to profit-taking activities after experiencing significant gains in July. Earlier, investors had bet on tightening global supplies and anticipated demand growth in the second half of the year.

As of now, Brent crude futures for October stood at $84.09 per barrel, recording a 44-cent decrease from the previous session. Monday saw the front-month Brent settling at its highest level since April 13. Stay informed about the latest market trends to make informed financial decisions.

Buzzing

Coal India Ltd.: A Promising Investment with Impressive Growth

The share price of Coal India Ltd. witnessed a significant uptick, rising by 5.21% from its previous close of Rs 229.25, reaching Rs 241.20. Investors will be pleased with the stock’s remarkable 3-year return of 77.37%, outperforming the Nifty 100, which recorded a return of 74.47%. Additionally, a 5-day moving crossover emerged recently, historically resulting in an average price gain of 2.94% within just 7 days of this signal over the last 5 years.

In terms of financial performance, Coal India Ltd. showcases a commendable annual revenue growth rate of 27.45%, surpassing its 3-year CAGR of 12.19%. This positive trend indicates the company’s strength and potential for future growth. Moreover, shareholders can rejoice as the company announced a dividend of Rs 4.0 per share on 8 May 2023, with a record date of 18 Aug 2023.

Investing in Coal India Ltd. seems promising, given its strong market performance and steady revenue growth. As it continues to make strides in the industry, it remains an attractive choice for discerning investors.

Hero MotoCorp Ltd.: A Closer Look at the Recent Market Movement

The share price of Hero MotoCorp Ltd. experienced a slight decline, decreasing by -3.24% from its previous close of Rs 3,203.70, settling at Rs 3,100.05. Over the past 3 years, the stock has delivered a return of 19.7%, which is lower compared to the Nifty 100’s return of 74.47%. However, the company’s financials show a positive annual revenue growth rate of 15.35%, surpassing its 3-year CAGR of 4.97%.

While the recent market movement may raise questions, Hero MotoCorp Ltd. has displayed consistent revenue growth, indicating a resilient business model. Investors may find solace in the company’s ability to outperform its 3-year revenue growth rate.

As the company continues to navigate the market, potential investors should carefully analyze its financial performance and long-term growth prospects before making investment decisions.

Advance Decline Ratio

Today, the advance-decline ratio was 1.24, and the market breadth was positive. The volatility index India Vix decreased by 1.24 percent to settle at 10.28 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 5922
Decliners – 4763
52Wk High – 229
52Wk Low – 12
High Band Hitters – 107
Low Band Hitters – 31
200d SMA – 18194
50d SMA – 19070
20d SMA – 19616

Top Gainers and Losers Stocks

The top gainers were Coal India (+5.21%), NTPC (+3.05%), Tech Mahindra (+2.38%), HCL Technologies (+1.91%), and LTIM (+1.70%).

The top losers were Power Grid (-5.17%), Hero MotoCorp (-3.24%), Apollo Hospitals (-2.64%), Adani Ports (-1.65%), and Bajaj Finserv (-1.58%).

Top Gainers and Losers Sector

The top gainers sectors were IT (+1.20%), Metal (+0.18%), Pharma (+0.06%).

The top losers sectors were Realty (-1.77%), Oil & Gas (-0.38%), FMCG (-0.26%), Media (-0.14%) and Auto (-0.12%).

The Nifty Midcap 50 was down by 0.26 percent, while the Nifty Small Cap 50 was up by 0.88 percent on the day.

The Nifty Midcap 50 index currently closed at 10,793.95, while the Nifty Small Cap 50 index currently closed at 5,341.50.

SECTORS – NOTABLE ACTION
IT +1.20%
METAL +0.18%
PHARMA +0.06%
REALTY -1.77%
OIL & GAS -0.38%
FMCG -0.26%

Stocks Ban List

(SEBI) F&O ban list (PEL open at -1023.00 and close at -1003.25), and (IBULHSGFIN open at +145.00 and close at -141.45) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned PEL and IBULHSGFIN 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.

HINDCOPPER, CANFINHOME, MANAPPURAM, and ZEEL stocks has the possibilities of enterance in the ban list.