NSE Nifty 50 Shows Resilience with Incremental Gains

At the close, the Nifty 50 was at 19,434.55 up by 0.03%

The NSE Nifty 50 commenced the trading session on a lower note, indicating a degree of market hesitance. However, it demonstrated resilience by gradually climbing throughout the day. The index registered a modest increase of 0.03 percent from its opening levels, suggesting a cautious yet optimistic sentiment among investors. As the trading day progressed, the Nifty 50 exhibited a noteworthy recovery, managing to close in the green.

The index’s closing level above 19400 is a significant development. It implies that the Nifty 50 has breached this key psychological level, showcasing strength in its recent performance.

The recent market closure depicted a session characterized by considerable volatility and intermittent selling pressure. This turbulence, often fueled by a variety of external triggers, underscores the need for investors to exercise caution and maintain a long-term perspective.

The trading day began on a challenging note, marked by a gap-down opening. The initial half saw the market grappling with negative trends, followed by a commendable recovery in the latter part. However, last-hour selling reversed much of the regained ground, culminating in a relatively flat closing.

The market’s erratic behavior can be attributed to the interplay of various factors. While European indices provided a glimmer of hope and buoyancy in IT stocks supported a recovery, concerns stemming from deflation and demand slowdown in China cast a shadow. Furthermore, apprehensions regarding potential rate hikes in developed economies added to the prevailing uncertainty.

Bank Nifty: Down by 0.24%

The Bank Nifty began the session on a negative note, reflecting a cautious sentiment. Throughout the trading day, it faced downward pressure, ultimately closing in the red with a decline of 0.24 percent. The closing value stood at 44,090.95, signifying challenges within the banking sector.

Conversely, the BSE Sensex exhibited a more positive trajectory. Despite opening in the red, it demonstrated resilience, managing to reverse the initial dip. The index closed in the green with a modest gain of 0.12 percent, reaching a high of 65,401.92. This showcases the diversified nature of the Indian stock market, with certain sectors displaying resilience even in the face of broader market fluctuations.

In the sectorial front, the Media sector showcased robust performance, gaining the highest among sectors with an increase of 0.87%. This indicates a positive sentiment toward media-related companies. Notably, PVR Inox Ltd. surged by an impressive 4.77%, showcasing strong investor confidence. Similarly, Navneet Education Ltd. recorded a gain of 1.60%, contributing to the sector’s overall growth.

Conversely, the Metal sector faced a decline, losing ground by 2.14%. This dip indicates a shift in investor sentiment away from metal-related companies. Among the notable performers, Jindal Steel & Power Ltd. experienced a substantial loss of -5.06%, while Hindustan Copper Ltd. also suffered a notable decrease of -5.03%.

Foreign institutional investors (FII/FPI) sold equities worth 9,658.92 while buying shares worth 7,334.69, resulting in a net value decrease of -2,324.23. Domestic institutional investors (DII) purchased shares worth 7,640.85 and sold shares worth 6,179.95, leading to a net value increase of 1,460.90.

Bank Nifty

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

The gainers included ICICI Bank with a 0.65% increase, Bandhan Bank with a 0.35% increase, Axis Bank with a 0.30% increase, Kotak Bank with a 0.20% increase and IDFC First Bank with a 0.17% increase. On the other hand, the biggest losers in the sector included State Bank of India with a 2.29% decline, Bank of Baroda with a 2.21% decline, IndusInd Bank with a 0.68% decline, HDFC Bank with a 0.64% decline, and Punjab National Bank with a 0.48% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

Divi’s Laboratories Ltd. has exhibited a modest increase in share price, climbing by 1.78% from its previous close of Rs 3,679.15 to reach Rs 3,744.80. However, the company’s 3-year return of 19.07% falls short compared to the Nifty 100’s remarkable return of 68.94%. A noteworthy occurrence is the weekly stochastic crossover observed on the week ending Aug 11, 2023. Historically, a similar signal led to an average price decline of -4.61% within 7 weeks. Moreover, the recent sales de-growth of 10.6% is notable, marking the first instance of revenue contraction in the last 3 years.

In contrast, Adani Enterprises Ltd. has experienced a dip in its share price by -3.64% from its previous close of Rs 2,539.50, settling at Rs 2,446.95. The company’s exceptional 3-year return of 1194.34% significantly outpaces the Nifty 100’s return of 68.94%. Notably, Adani Enterprises has demonstrated an impressive annual revenue growth of 96.18%, surpassing its 3-year CAGR of 45.79%.

While Divi’s Laboratories grapples with sales de-growth and a recent stochastic crossover, Adani Enterprises shines with extraordinary share price gains and remarkable revenue growth.

Advance Decline Ratio

Today, the advance-decline ratio was 0.59, and the market breadth was negative. The volatility index India Vix increased by 4.10 percent to settle at 12.00 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 870
Decliners – 1485
52Wk High –  94
52Wk Low – 32
High Band Hitters – 81
Low Band Hitters – 87
200d SMA – 18289
50d SMA – 19258
20d SMA – 19643

Top Gainers and Losers Stocks

The top gainers were Divi’s Laboratories (+1.78%), Infosys (+1.54%), LTIM (+1.46%), Hindustan Unilever (+1.25%), and Reliance (+1.02%).

The top losers were Adani Enterprises (-3.64%), JSW Steel (-2.74%), Hindalco (-2.31%), SBIN (-2.29%), and Adani Ports (-2.13%).

Top Gainers and Losers Sector

The top gainers sectors were Media (+0.87%), IT (+0.68%), FMCG (+0.49%).

The top losers sectors were Metal (-2.14%), Realty (-0.66%), Consumer Durables (-0.41%), Financial Services (-0.34%), and Auto (-0.33%).

The Nifty Midcap 50 was up by 0.05 percent, while the Nifty Small Cap 50 was down by 0.47 percent on the day.

The Nifty Midcap 50 index currently closed at 10,827.45, while the Nifty Small Cap 50 index currently closed at 5,335.05.

SECTORS – NOTABLE ACTION
MEDIA +0.87%
IT +0.68%
FMCG +0.49%
METAL -2.14%
REALTY -0.66%
CONSUMER DURABLES -0.41%

Stocks Ban List

(SEBI) F&O ban list  (INDIACEM open at +248.00 and close at -251.90), (CHAMBLFERT open at -265.30 and close at -254.65), (GRANULES open at -298.00 and close at -291.85), (ZEEL open at -272.00 and close at +271.40), (DELTACORP open at -183.00 and close at -182.30), (IBULHSGFIN open at -162.60 and close at -156.70), (MANAPPURAM open at -147.75 and close at -147.30), (BALRAMCHIN open at -391.35 and close at +392.80), and (HINDCOPPER open at +158.90 and close at -152.40) 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.

GNFC, PNB, LICHSGFIN, BHEL, RECLTD, RBLBANK, VEDL, MGL, PEL and BIOCON stocks has the possibilities of enterance in the ban list.

BALRAMCHIN and HINDCOPPER stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 19300 to 19530 is the Nifty 50 trading range.

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