Resilient Markets Overcome Weak Global Cues, End Green

NiftyTrader • August 16, 2023

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Index	Price	Change	% Chg
Nifty 50	19,465.00	+30.45	+0.16%
Nifty Bank	43,946.40	–144.55	-0.33%
BSE SENSEX	65,539.42	+137.50	+0.21%

At the close, the Nifty 50 was at 19,465.00 up by 0.16%

In the current trading session, the NSE Nifty 50 initiated its proceedings with a subdued opening, characterized by a lower valuation. However, as the day unfolded, the index displayed a commendable ascent, posting a notable gain of 0.16 percent by the time the market concluded. The session culminated on a positive note as the Nifty clinched a position within the green territory, underscoring its resilience and potential for growth. Notably, the Nifty’s impressive performance positioned it above the significant threshold of 19,450, reaffirming its role as a pivotal benchmark in the financial landscape.

The equity benchmarks once again demonstrated their resilience by concluding the trading session on a positive note, managing to recuperate from the earlier losses. This impressive turnaround was underpinned by widespread buying across various sectors, which significantly bolstered the market sentiment.

However, despite this noteworthy recovery, it is anticipated that the markets might encounter fluctuations in the near future. This prediction stems from concerns surrounding elevated inflation rates in both domestic and global economies, a factor that could potentially extend the timeline for the conclusion of the rate tightening cycle and subsequently impede economic growth.

The initial unease triggered by an unexpectedly substantial increase in domestic Consumer Price Index (CPI) inflation, primarily attributed to surging food prices, introduced a degree of volatility into the Indian market. Moreover, as the trend of core inflation continued its downward trajectory, the market’s outlook on an immediate rate hike remained subdued. Instead, the likelihood of an extended pause in rate adjustments appeared more plausible.

Across Western markets, the landscape was characterized by fluctuations influenced by multiple factors. Notably, stronger-than-expected retail sales data in the United States and apprehensions concerning potential credit rating downgrades for US banks played a significant role in the observed fluctuations. Meanwhile, Asian markets responded to a noteworthy development: the rate cut implemented by the Chinese central bank.

Bank Nifty: Down by 0.33%

The Bank Nifty commenced the trading session on a negative note, experiencing a decline of 0.33 percent, and concluded in the same downward trajectory, settling at 43,946.40. Concurrently, the BSE Sensex displayed a contrasting performance by registering a positive movement of 0.21 percent and concluding the day in the green zone, reaching an elevated mark of 65,539.42.

On the sectorial forefront, there was a substantial upward momentum observed in the Media sector, recording an impressive gain of 1.20%. Within this sector, notable advancements were evidenced in the performance of Nazara Technologies Ltd., which experienced a remarkable ascent of 5.27%, and Navneet Education Ltd., demonstrating a commendable gain of 2.92%. Conversely, the Metal sector experienced a downturn as the highest loser with a decrement of 0.94%. This sector witnessed the decline of Hindustan Copper Ltd. by a significant margin of -6.04%, along with Welspun Corp Ltd., which faced a reduction of -2.67%.

Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI) displayed notable market activity, with a substantial buy value of 21,055.98 Rs. Cr. and a corresponding sale value of 20,333.22 Rs. Cr. This resulted in a net value gain of 722.76 Rs. Cr. On the domestic front, Domestic Institutional Investors (DII) exhibited strategic moves, showcasing a robust buy value of 7,977.67 Rs. Cr. against a sale value of 5,571.48 Rs. Cr. Consequently, a noteworthy net value surplus of 2,406.19 Rs. Cr. was achieved.

Bank Nifty

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

The gainers included State Bank of India with a 0.76% increase, and IDFC First Bank with a 0.23% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 1.54% decline, Punjab National Bank with a 1.28% decline, Bank of Baroda with a 1.09% decline, AU Bank with a 1.08% decline, and Axis Bank with a 0.74% decline. These results suggest that some banking stocks not performed better for the day.

Buzz

Amidst a backdrop of intricate market dynamics, oil prices exhibited minimal fluctuations on August 16. This stability emerged as investors carefully assessed the potential impact of China’s economic challenges, juxtaposed with the anticipation of a more constrained supply scenario within the United States.

Brent crude futures experienced a marginal decline of 7 cents, settling at $84.82 per barrel, whereas U.S. West Texas Intermediate crude (WTI) exhibited a slight reduction of 8 cents, reaching $81.91 per barrel.

In the preceding session, both benchmark prices recorded a decline exceeding 1%, marking their lowest levels since August 8.

The market’s attention is firmly fixed on China’s economic challenges, with notable disparities between anticipated and realized figures in retail sales, industrial output, and investments.

Buzzing

Apollo Hospitals Enterprise Ltd. (AHEL) is a leading healthcare provider in India, offering a range of services such as hospitals, pharmacies, diagnostics, telemedicine, and insurance. AHEL’s share price rose by 2.60% on 16 Aug, 2023, closing at Rs 4,946.00 per share. This reflects the strong performance of the company, which has delivered a 182.36% return in the last three years, outperforming the Nifty 100 index by more than 100%. AHEL also announced a dividend of Rs 9.0 per share on 30 May, 2023, payable to shareholders on record as of 19 Aug, 2023. AHEL is one of the best stocks to buy in India for long-term growth and income.

Tata Steel Ltd. (TSL) is a leading steel manufacturer in India, with a global presence in over 50 countries. TSL’s share price fell by -1.90% on 16 Aug, 2023, ending at Rs 115.90 per share. This was despite the impressive performance of the company, which has generated a 182.32% return in the last three years, beating the Nifty 100 index by more than 100%. TSL also witnessed a 20 day moving crossover on 14 Aug, 2023, which is a bearish signal for the stock. However, this signal has resulted in an average price decline of only -3.12% within 7 days in the last 5 years. TSL’s sales also contracted by 0.14% for the first time in the last three years, indicating some challenges in the market. TSL is one of the best stocks to invest in India for long-term growth and stability.

Advance Decline Ratio

Today, the advance-decline ratio was 1.06, and the market breadth was positive. The volatility index India Vix increased by 1.08 percent to settle at 12.13 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1208
Decliners – 1137
52Wk High – 125
52Wk Low – 26
High Band Hitters – 91
Low Band Hitters – 57
200d SMA – 18298
50d SMA – 19276
20d SMA – 19629

Top Gainers and Losers Stocks

The top gainers were Apollo Hospitals (+2.60%), UltraTech Cement (+2.37%), NTPC (+2.11%), Infosys (+1.75%), and Tata Motors (+1.72%).

The top losers were Tata Steel (-1.90%), Adani Ports (-1.56%), Hindalco (-1.51%), HDFC Life (-1.35%), and Bharti Airtel (-1.22%).

Top Gainers and Losers Sector

The top gainers sectors were Media (+1.20%), Realty (+1.10%), Auto (+0.64%), Pharma (+0.61%) and IT (+0.59%).

The top losers sectors were Metal (-0.94%), Consumer Durables (-0.39%), and Financial Services (-0.34%).

The Nifty Midcap 50 was up by 0.09 percent, while the Nifty Small Cap 50 was down by 0.10 percent on the day.

The Nifty Midcap 50 index currently closed at 10,837.55, while the Nifty Small Cap 50 index currently closed at 5,329.60.

SECTORS – NOTABLE ACTION
MEDIA +1.20%
REALTY +1.10%
AUTO +0.64%
METAL -0.94%
CONSUMER DURABLES -0.39%
FINANCIAL SERVICES -0.34%

Stocks Ban List

(SEBI) F&O ban list (INDIACEM open at +250.60 and close at -246.80), (GNFC open at -537.20 and close at +541.25), (CHAMBLFERT open at -253.50 and close at +255.65), (DELTACORP open at -182.20 and close at +182.75), (GRANULES open at -291.00 and close at +294.10), (ZEEL open at +275.00 and close at +276.00), (IBULHSGFIN open at -155.40 and close at +165.00), (MANAPPURAM open at -147.20 and close at +148.75), and (BALRAMCHIN open at +393.05 and close at +393.50) 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, BHEL, RECLTD, RBLBANK, SAIL, CANFINHOME, LICHSGFIN, VEDL, MGL and PEL stocks has the possibilities of enterance in the ban list.

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