Profit Booking and News Flows Impact Market Sentiment Amid First Quarter Earnings

NiftyTrader • July 24, 2023

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Index	Price	Change	% Chg
Nifty 50	19,672.35	–72.65	-0.37%
Nifty Bank	45,923.05	-152.15	-0.33%
BSE SENSEX	66,384.78	–299.48	–0.45%

At the close, the Nifty 50 was at 19,672.35 down by 0.37%

In today’s trading session, the NSE Nifty 50 commenced on a bearish note, opening at a low point and witnessing a decline of 0.37 percent. As the day progressed, the index struggled to recover, ultimately closing in the red below the crucial 19700 level.

The NSE Nifty 50’s performance today indicates a bearish sentiment in the market, with investors exercising caution amidst prevailing uncertainties. The index’s dip below the significant 19700 mark is a matter of concern for traders and investors alike.

As the first quarter earnings season unfolds, market expectations are undergoing a reset. Today, profit booking ensued, affecting heavyweights and financials due to the ongoing earnings releases and emerging news flows.

Investors are closely monitoring the corporate performance during this crucial reporting period, leading to potential adjustments in investment strategies. Amidst these developments, staying informed and vigilant is paramount to make prudent decisions in response to the changing market sentiment.

In today’s sectorial analysis, the Pharmaceutical sector emerged as the top gainer, registering an impressive growth of 0.41%. Within this sector, Glenmark Pharmaceuticals Limited witnessed substantial gains of 4.12%, followed by Alkem Laboratories Limited with a rise of 2.27%.

Conversely, the Fast-Moving Consumer Goods (FMCG) sector experienced a downturn, recording a decline of 1.72%. Leading the losses in this sector, United Spirits Limited reported a significant drop of -5.83%, while ITC Limited faced a decrease of -4.30%.

Bank Nifty: Down by 0.33%

In today’s trading session, the Bank Nifty displayed a brief surge, opening in the green but quickly succumbed to a decline of 0.33 percent, leading to a red finish with a closing value of 45,923.05. Simultaneously, the BSE Sensex experienced a similar bearish trend, losing 0.45 percent and ending the day in the red zone at a low of 66,384.78.

The Bank Nifty’s short-lived positive opening indicates the prevailing market volatility, with traders and investors facing uncertainty. Such fluctuations demand careful analysis and vigilant decision-making to navigate these turbulent times successfully.

With the release of initial Q1 results falling short of expectations, the market has witnessed a re-emergence of volatility. Notably, the FMCG and IT sectors experienced setbacks, revealing challenges stemming from weak demand and elevated input costs.

The banking sector displayed mixed performance during this period, while pharmaceutical stocks have demonstrated resilience, holding back volatility. Investors are anticipating improved demand from developed economies, potential resolutions to US pricing concerns, and enhanced operating margins in the pharma industry.

Foreign Institutional Investors (FII/FPI) recorded a buy value of Rs. 9,719.18 Cr. and a sale value of Rs. 9,802.14 Cr., resulting in a net value of -Rs. 82.96 Cr. On the other hand, Domestic Institutional Investors (DII) made purchases worth Rs. 8,655.89 Cr. and sales worth Rs. 7,721.02 Cr., yielding a net value of Rs. 934.87 Cr.

Bank Nifty

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

The gainers included IndusInd Bank with a 1.96% increase, IDFC First Bank with a 0.97% increase, Bank of Baroda with a 0.89% increase, State Bank of India with a 0.46% increase, and Bandhan Bank with a 0.37% increase. On the other hand, the biggest losers in the sector included Kotak Bank with a 3.88% decline, AU Bank with a 3.82% decline, Punjab National Bank with a 0.88% decline, ICICI Bank with a 0.51% decline and Federal Bank with a 0.11% decline. These results suggest that some banking stocks performed better for the day.

Buzz

On Monday, the Indian rupee demonstrated strength, gaining 15 paise to close at 81.83 (pro) against the US dollar, fueled by a significant surge in the country’s forex reserves, which bolstered investor confidence.

During the day’s trading session at the interbank foreign exchange market, the local unit commenced at 82 against the US dollar and fluctuated within the range of 81.82 to 82.04.

The rupee’s closing at 81.83 (pro) signified a notable improvement of 15 paise compared to the previous close of 81.98 on Friday, showcasing a positive outlook for the currency and market sentiment.

Equity markets faced downward pressure due to foreign fund outflows and the surge in crude oil prices. As traders awaited the forthcoming US Federal Reserve’s monetary policy decision scheduled for this week, uncertainty loomed over market sentiments.

Foreign fund outflows and fluctuations in crude oil prices can significantly impact equity markets, making it essential for investors to closely monitor global economic developments. With the US Federal Reserve’s policy decision on the horizon, market participants are advised to exercise caution and stay informed to make well-informed investment choices during this period of heightened market volatility.

Buzzing

IndusInd Bank Ltd. Stock Performance Analysis Impressive Growth and Strong Returns

IndusInd Bank Ltd. witnessed a notable uptrend in its share price, marking a 1.96% increase from its previous close of Rs 1,407.35, with the stock’s last traded price at Rs 1,435.00. Over the past 3 years, the stock has delivered an impressive return of 169.48%, outperforming the Nifty 100, which yielded a return of 72.95%.

Additionally, IndusInd Bank Ltd. demonstrated robust financial performance with an annual revenue growth of 16.51%, surpassing its 3-year Compound Annual Growth Rate (CAGR) of 7.54%. Moreover, the company reported a year-on-year (YoY) increase of 21.28% in its advances, which exceeded its 5-year CAGR of 9.24%.

ITC Ltd. Stock Analysis Facing Decline Amidst Market Volatility

ITC Ltd. experienced a downturn in its share price, declining by -4.30% from its previous close of Rs 490.45, with the stock’s last traded price at Rs 469.35. Despite a 3-year return of 145.72%, outperforming the Nifty 100’s return of 72.95%, the stock’s performance in comparison to Nifty FMCG’s 72.65% return over the same period is worth noting.

While the company showcased a commendable annual revenue growth of 16.66%, it slightly underperformed its 3-year Compound Annual Growth Rate (CAGR) of 11.8%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.12, and the market breadth was positive. The volatility index India Vix increased by 1.45 percent to settle at 11.65 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 5633
Decliners – 5042
52Wk High – 172
52Wk Low – 20
High Band Hitters – 77
Low Band Hitters – 74
200d SMA – 18117
50d SMA – 18896
20d SMA – 19423

Top Gainers and Losers Stocks

The top gainers were IndusInd Bank (+1.96%), SBI Life (+1.96%), Dr. Reddy (+1.93%), M&M (+1.54%), and UltraTech Cement (+1.41%).

The top losers were ITC (-4.30%), Kotak Bank (-3.88%), Tech Mahindra (-3.10%), Reliance (-2.00%), and Britannia (-1.47%).

Top Gainers and Losers Sector

The top gainers sectors were Pharma (+0.41%), Realty (+0.20%), Auto (+0.17%).

The top losers sectors were FMCG (-1.72%), Metal (-0.73%), Oil & Gas (-0.71%), Consumer Durables (-0.31%), and Media (-0.18%).

The Nifty Midcap 50 was up by 0.14 percent, while the Nifty Small Cap 50 was up by 0.23 percent on the day.

The Nifty Midcap 50 index currently closed at 10,461.20, while the Nifty Small Cap 50 index currently closed at 5,196.05.

SECTORS – NOTABLE ACTION
PHARMA +0.41%
REALTY +0.20%
AUTO +0.17%
FMCG -1.72%
METAL -0.73%
OIL & GAS -0.71%

Stocks Ban List

(SEBI) F&O ban list (DELTACORP open at -189.50 and close at +188.65), (BALRAMCHIN open at +394.05 and close at +396.30), (PNB open at -63.10 and close at -62.10), (IBULHSGFIN open at -121.70 and close at +121.60), (MANAPPURAM open at +129.80 and close at -126.10), and (L&TFH open at -129.20 and close at +131.70) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned DELTACORP, BALRAMCHIN, PNB, IBULHSGFIN, MANAPPURAM, and L&TFH 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.

ZEEL, CANBK, BHEL, SUNTV, GNFC, HINDCOPPER, INDIACEM, TATACHEM, GRANULES, and INDUSTOWER are stock that are potentially facing the possibility of being included in the ban list.

MANAPPURAM, and L&TFH has the possibilities of exit from ban list.