Profit Booking Impact Benchmark Indices Experience a Dip on Monday

At the close, the Nifty 50 was at 22,122.05 down by 0.41%

On February 26, the NSE Nifty 50 started the day in the red, marking a decline of 0.41% and closed below the 22,150 mark. Despite volatility, Indian equity indices concluded with losses, with Nifty registering below 22,150, witnessing selling pressure across sectors except for oil & gas, power, and capital goods.

Throughout the day, the market opened negatively due to mixed global cues, experiencing prolonged selling in the initial half. However, a resurgence in buying activity within the power and capital goods segments during the latter half facilitated a partial recovery from intraday losses. Nifty ultimately closed at 22,122.05, down 90.65 points, reflecting a 0.41% decrease.

The tepid start to the week gradually compounded losses for Indian equities. Despite a mid-session attempt at recovery, the index struggled to maintain higher levels, ultimately settling with a loss of 90.65 points.

Technical analysis reveals a consolidation phase for Nifty over the past four trading sessions, indicating a period of indecision among market participants. Investors are now shifting focus from earnings to key economic indicators such as US and India GDP data, eurozone inflation, and US jobless claims. These figures will influence central bank decisions regarding interest rates, thereby impacting market sentiment in the short term.

Furthermore, concerns over demand and elevated US inventory levels contributed to a decline in oil prices, adding to market uncertainties.

Bank Nifty: Down by 0.50%

On the trading day, the Bank Nifty commenced with a decline, opening in the red and marking a 0.50% decrease. The downward trend persisted throughout the session, leading to a closure below the previous mark, with Bank Nifty ending at 46,576.50, reflecting the prevailing bearish sentiment. Similarly, the BSE Sensex also faced a downtrend, down by 0.48%, and concluded the session at a low of 72,790.13, remaining in negative territory. Despite early hopes for recovery, both indices struggled to gain traction, ultimately succumbing to selling pressure and closing in the red. The day’s trading session underscored the prevailing challenges in the market, prompting investors to closely monitor developments and adjust their strategies accordingly to navigate through uncertain market conditions.

In the sectorial front, the Oil & Gas sector witnessed a notable increase of 0.12%. Notably, Adani Total Gas Ltd. surged by an impressive 4.90%, indicating a positive trajectory for the company. Similarly, Hindustan Petroleum Corporation Ltd. also showed promising growth, gaining 2.91%. On the flip side, the Information Technology (IT) sector faced challenges, marking a decline of 1.17%. Persistent Systems Ltd. experienced a significant loss of -2.68%, while Tech Mahindra Ltd. also saw a downturn of -2.00%.

Foreign Institutional Investors (FII)/Foreign Portfolio Investors (FPI) recorded a buy value of Rs. 12,525.31 crore and a sale value of Rs. 12,810.46 crore. Consequently, the net value stood at -Rs. 285.15 crore, indicating a net selling activity by FIIs/FPIs. On the other hand, Domestic Institutional Investors (DII) reported a buy value of Rs. 8,526.82 crore and a sale value of Rs. 8,532.15 crore. Consequently, the net value amounted to -Rs. 5.33 crore, suggesting a marginal net selling activity by DIIs.

Bank Nifty

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

The gainers included IDFC First Bank with a 1.87% increase, HDFC Bank with a 0.10% increase, and Bank of Baroda with a 0.06% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 2.83% decline, Punjab National Bank with a 2.38% decline, AU Bank with a 2.29% decline, Axis Bank with a 1.17% decline, and Kotak Bank with a 0.99% decline. These results suggest that some of the banking stocks not performed better for the day.

Rupee Appreciates Slightly Amidst Mixed Market Signals

In early Monday trading, the Indian rupee saw a modest appreciation of 2 paise against the US dollar, reaching 82.89. This uptick was attributed to increased foreign fund inflows and a retreat in crude oil prices on the global market. However, the domestic unit faced pressure due to subdued sentiment in the equity market and the strengthening of the American currency.

Starting at 82.88 against the greenback at the interbank foreign exchange, the rupee marginally strengthened to 82.89, marking a gain of 2 paise from its previous close. Just last Friday, the rupee experienced a minor setback, settling 6 paise lower at 82.91 against the US dollar.

Meanwhile, the dollar index, which measures the strength of the US dollar against a basket of six major currencies, showed a slight increase of 0.06%, standing at 103.92.

In the global oil market, Brent crude futures, a key indicator, were down by 0.45%, trading at $82.25 per barrel. This decline in crude oil prices contributed to the positive sentiment surrounding the rupee’s performance against the dollar.

Stocks Highlights

Larsen & Toubro Ltd. witnessed a notable increase in its share price, rising by 2.43% from its previous close of Rs 3,387.95 to Rs 3,470.35. Notably, the company’s annual revenue growth stood at an impressive 17.31%, surpassing its three-year Compound Annual Growth Rate (CAGR) of 7.93%. Regarding expenses, Larsen & Toubro allocated 1.75% of its operating revenues towards interest expenses and 20.3% towards employee costs in the fiscal year ending March 31, 2023.

On the other hand, Asian Paints Ltd. experienced a decline in its share price, dropping by -3.95% from its previous close of Rs 2,985.95 to Rs 2,868.00. Despite this, the company’s expenses remained relatively low, with less than 1% allocated towards interest expenses and 5.88% towards employee costs in the same fiscal year.

Noteworthy for Asian Paints Ltd. is the recent buy signal, indicated by a weekly stochastic crossover on the week ending February 23, 2024. Historical data shows an average price gain of 6.16% within seven weeks following this signal over the past decade, suggesting a potential opportunity for bullish investors.

Advance Decline Ratio

Today, the advance-decline ratio was 0.63, and the market breadth was negative. The volatility index India Vix increased by 4.19 percent to settle at 15.60 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 992
Decliners – 1569
52Wk High –  171
52Wk Low – 10
High Band Hitters – 131
Low Band Hitters – 81
200d SMA – 19986
50d SMA – 21707
20d SMA – 21900

Top Gainers and Losers Stocks

The top gainers were Larsen & Toubro (+2.43%), Power Grid (+1.99%), Adani Enterprises (+1.67%), Tata Consumer  (+1.53%), and SBI Life (+1.49%).

The top losers were Asian Paint (-3.95%), Apollo Hospitals (-2.62%), Hindalco (-2.47%), Divi’s Laboratories (-2.05%), and Tech Mahindra (-2.00%).

Top Gainers and Losers Sector

The top gainers sector were Oil & Gas (+0.12%), Auto (+0.10%), and Realty (+0.07%).

The top losers sector were IT (-1.17%), Metal (-0.94%),  Consumer Durables (-0.89%), Pharma (-0.48%), and Media (-0.37%).

SECTORS – NOTABLE ACTION
OIL & GAS +0.12%
AUTO +0.10%
REALTY +0.07%
IT -1.17%
METAL -0.94%
CONSUMER DURABLES -0.89%

Stocks Ban List

(SEBI) F&O ban list (CANBK open at -584.00 and close at -573.25), (ABFRL open at +228.20 and close at -225.30), (SAIL open at -128.00 and close at -124.20), (BALRAMCHIN open at -379.50 and close at -375.10), (PVRINOX open at +1393.00 and close at +1406.45), (RBLBANK open at -269.25 and close at +272.85), (PEL open at -936.95 and close at -909.55), (ASHOKLEY open at +174.20 and close at -174.00), (ZEEL open at +174.55 and close at -171.35), (GNFC open at +674.05 and close at +678.60), (BIOCON open at +274.80 and close at -272.95), (GMRINFRA open at +88.80 and close at -87.65), (HINDCOPPER open at -263.60 and close at -262.45) 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.

PNB, NMDC, TATACHEM, INDIACEM, VEDL, BHEL, and MANAPPURAM stocks has the possibilities of entrance in the ban list.

PVRINOX, RBLBANK, PEL, ASHOKLEY, ZEEL, GNFC, BIOCON, GMRINFRA, and HINDCOPPER stock have the possibility of exit from the ban list.

Daily Pivots

As per the above pivots data, 22000 to 22250 is the Nifty 50 trading range.

Read previous -Daily Insights- here
NSE Nifty 50 Sees Volatility Amid Cautionary Market Sentiment
Nifty 50’s Resilience Bouncing Back from Previous Losses
Engulfing Bear Candle Forms as Nifty Index Peaks and Plummets

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