Stock Market Indices Close with Modest Gains Amid IT Stock Sell-Off

At the close, the Nifty 50 was at 22,402.40 up by 0.15%

The NSE Nifty 50 commenced the day on a positive note, edging up by 0.15% and maintaining its upward trajectory to close in the green. With the index surpassing the 22,400 mark, investors navigated through choppy waters, particularly with the looming monthly F&O expiry scheduled for April 25. Despite the volatility, the Nifty 50 recorded its fourth consecutive day of gains on April 24, settling above the crucial 22,400 level and bridging the significant downside gap formed on April 15.

Throughout the day, the index experienced fluctuations, reaching a high of 22,476.45 before encountering selling pressure in the final hour of trade. However, a late-session rebound propelled it to close at 22,402.40, marking an increase of 34.40 points. Although a small bearish candlestick pattern with a minor upper shadow emerged on the daily charts, sentiment for the short term remains positive, supported by the index’s closure above critical moving averages and a positive crossover in the RSI.

While Indian markets lagged behind their Asian counterparts due to subdued Q4 earnings, particularly in the IT sector, positive indicators such as strong manufacturing and service sectors buoyed the domestic composite PMI to a multi-year high, injecting optimism into the broader market. Globally, easing tensions in the Middle East and declining oil prices contributed to an improvement in investor sentiment, further bolstering market confidence.

Bank Nifty: Up by 0.46%

The Bank Nifty commenced the trading session on a positive note, opening in the green and advancing by 0.46 percent. This upward trajectory persisted throughout the day, culminating in a green finish at 48,189.00, reflecting the sector’s resilience amidst prevailing market conditions. Likewise, the BSE Sensex followed suit, posting a gain of 0.16 percent and concluding the session in the green, reaching a peak of 73,852.94.

In the sectorial front, the metal sector has shown significant gains, with an increase of 2.69%. Leading this surge is Steel Authority Of India Ltd., which gained by 7.36%, followed by NMDC Ltd. with a gain of 5.58%. Conversely, the IT sector experienced losses, declining by 0.81%. Persistent Systems Ltd. saw a decrease of -1.69%, while Tech Mahindra Ltd. recorded a loss of -1.07%.

Foreign Institutional Investors (FII/FPI) have shown a net selling position, with a sale value of Rs. 12,754.69 crore exceeding the buy value of Rs. 10,242.95 crore, resulting in a net value of -Rs. 2,511.74 crore.

Conversely, Domestic Institutional Investors (DII) have demonstrated a bullish stance, with a higher buy value of Rs. 12,601.22 crore compared to the sale value of Rs. 8,791.32 crore, resulting in a net value of Rs. 3,809.90 crore.

Bank Nifty

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

The gainers included AU Bank with a 1.73% increase, Kotak Bank with a 1.65% increase, Axis Bank with a 0.88% increase, ICICI Bank with a 0.53% increase, and Bandhan Bank with a 0.46% increase. On the other hand, the biggest losers in the sector included Bank of Baroda with a 0.35% decline, Federal Bank with a 0.16% decline, and State Bank of India with a 0.06% decline. These results suggest that most of the banking stocks performed better for the day.

Rupee Inches Up Slightly Amidst Mixed Market Sentiments

The Indian rupee saw marginal gains against the US dollar on Wednesday, closing at 83.30, up by 1 paisa from the previous day’s close. The day witnessed a tight consolidation within a narrow range for the rupee, with positive domestic equities providing support while the strength of the American currency offset some of these gains.

Investor sentiment was tempered by elevated crude oil prices and substantial foreign fund outflows in the international market. Despite opening at 83.29 against the greenback, the rupee oscillated between an intraday high of 83.26 and a low of 83.33.

The rupee’s outlook remains cautiously optimistic, with expectations of a slight positive bias driven by improved global risk sentiments and a decrease in geopolitical tensions in the Middle East. However, any escalation in the region could limit gains for the local currency.

On Tuesday, the rupee had closed marginally weaker at 83.31 against the US dollar. Meanwhile, Brent crude futures, the global oil benchmark, experienced a slight decline of 0.34% to $88.12 per barrel, providing some relief amidst the volatility in energy markets.

Stocks Highlights

Hindalco Industries Ltd. witnessed a notable increase in share price by 3.96%, reaching Rs 636.00 from its previous close of Rs 611.80. Intriguingly, historical data over the last 19 years reveals that only 3.05% of trading sessions experienced intraday declines exceeding 5%. Moreover, the company allocated 1.63% of its operating revenues to interest expenses and 5.85% towards employee costs in the fiscal year ending March 31, 2023. Over a 3-year period, Hindalco Industries Ltd. delivered robust returns of 75.05%, outperforming both Nifty 100 and Nifty Metal indices.

Conversely, Tata Consumer Products Ltd. observed a decline in share price by -5.48%, falling to Rs 1,109.00 from its previous close of Rs 1,173.35. Despite this, the company maintained a low allocation of less than 1% towards interest expenses but devoted 8.28% of operating revenues to employee costs in the fiscal year ending March 31, 2024. Over the same 3-year timeframe, Tata Consumer Products Ltd. showcased strong returns of 76.55%, surpassing benchmarks such as Nifty 100 and Nifty FMCG indices.

Advance Decline Ratio

Today, the advance-decline ratio was 1.59, and the market breadth was positive. The volatility index India Vix increased by 0.78 percent to settle at 10.28 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1564
Decliners – 984
52Wk High – 150
52Wk Low – 6
High Band Hitters – 158
Low Band Hitters – 43
200d SMA – 20687
50d SMA – 22204
20d SMA – 22359

Top Gainers and Losers Stocks

The top gainers were Hindalco (+3.96%), Cipla (+3.92%), JSW Steel (+3.87%), Tata Steel (+2.82%), and Power Grid (+1.66%).

The top losers were Tata Consumer (-5.48%), Grasim (-1.27%), Bajaj Auto (-1.16%), Tech Mahindra (-1.07%), and HDFC Life (-1.06%).

Top Gainers and Losers Sector

The top gainers sector were Metal (+2.69%), Consumer Durables (+0.90%), Realty (+0.89%), Oil & Gas (+0.67%), and Pharma (+0.66%).

The top losers sector were IT (-0.81%), Media (-0.29%), and Auto (-0.08%).

SECTORS – NOTABLE ACTION
METAL +2.69%
CONSUMER DURABLES +0.90%
REALTY +0.89%
IT -0.81%
MEDIA -0.29%
AUTO -0.08%

Stocks Ban List

(SEBI) F&O ban list (HINDCOPPER open at -374.90 and close at +379.65), (ZEEL open at +144.50 and close at -140.10), and (IDEA open at +13.75 and close at -13.10) 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.

ABFRL, LICHSGFIN, CANBK, NATIONALUM, OFSS, TATACHEM, INDUSTOWER, INDIACEM, and BANDHANBNK stocks has the possibilities of entrance in the ban list.

IDEA stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 22300 to 22500 is the Nifty 50 trading range.

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