Stocks Low Performance

Stocks edge lower, Nifty closed at 17894.85

Today, the Indian stock market started the day on a positive note, but failed to hold on to its gains and ended the day in the red. The NSE Nifty 50 Index fell by 0.34 percent to end the day at 17,900 points.

Weak global cues, with most Asian markets trading in the red, weighed on the Indian market. In addition, concerns about the rising Covid-19 cases in the country also weighed on sentiment.

Sector-wise, all except IT stocks ended the day in the green. Media, metal and financial services stocks were the biggest losers.

Overall, it was a weak day for the Indian stock market.

The Bank Nifty also opened in green and was down by 0.48 percent closed in red at 42167.55. Similarly, the BSE Sensex was down by 0.28 percent and closed in red at a low of 60092.97.

What caused this drop?

There are a few possible explanations. Firstly, there could be some profit-taking after the index reached a new high yesterday. Secondly, global markets were mostly in the red today, which could have dragged the Nifty down.

What does this mean for investors?

If you’re a long-term investor, this dip could be a good opportunity to buy into quality stocks at relatively attractive prices. However, if you’re a short-term trader, it’s best to stay on the sidelines and wait for the market to stabilize.

We are seeing a slowdown in global growth, and this is starting to have an impact on India as well. We are seeing some earnings downgrade for Nifty companies, and this is putting pressure on the index. We expect that Nifty will be under pressure for some time to come, and we recommend that investors remain cautious in the near-term.

Today, the advance-decline ratio was 0.65, and the market breadth was negative. The volatility index India Vix increased by 3.89 percent to settle at 15.02 and the FIIs were net sellers today.

The market breadth was negative today, with the advance-decline ratio coming in at 0.65. This means that for every 65 stocks that gained ground, 100 lost ground. Additionally, the volatility index India Vix increased by 3.89 percent to settle at 15.02. This is a sign that the market is becoming more volatile. Foreign institutional investors were net sellers today, meaning they sold more shares than they bought.

DAILY MARKET ACTION
Advancers – 884
Decliners – 1355
52Wk High –  44
52Wk Low – 34
High Band Hitters – 89
Low Band Hitters – 51
200d SMA – 17277
50d SMA – 18291
20d SMA – 18051

Top Gainers and Losers

The top gainers were Tech Mahindra (+3.08%), HCL Technologies (+1.48%), Infosys (+1.35%), Wipro (+1.28%), and TCS (+1.07%).

The top losers were Adani Enterprises (-2.69%), Axis Bank (-2.28%), Hindalco (-1.13%), JSW Steel (-1.11%), and Maruti (-1.10%).

Sectors & Broader Indices

The top gainers sector were IT (+1.14%), and FMCG (+0.12%).

The top losers sector were Media (-1.36%), Metal (-1.32%), Financial Services (-0.75%), Auto (-0.65%), and Consumer Durables (-0.52%).

The Nifty Midcap 50 was down by 0.46 percent, while the Nifty Small Cap 50 down by 0.06 percent on the day.

The Nifty Midcap 50 index currently closed at 8,707.35, while the Nifty Small Cap 50 index currently closed at 4,338.40.

SECTORS – NOTABLE ACTION
MEDIA -1.36%
METAL -1.32%
FINANCIAL SERVICES -0.75%
IT +1.14%
FMCG +0.12%

(SEBI) F&O ban list L&TFH, GNFC and IBULHSGFIN are not currently on the stock exchange. L&TFH open at 92.25 and close at 95.15, whereas GNFC open at 575.85 and close at 573.85, while IBULHSGFIN open at 140.20 and close at 138.70.

The Securities and Exchange Board of India (SEBI) has banned GNFC and IBULHSGFIN from trading in the futures and options (F&O) segment of the stock exchange.

This is due to the fact that GNFC and IBULHSGFIN are not currently listed on the stock exchange.

GNFC and IBULHSGFIN are both large companies and their share prices are likely to be affected by this ban.

Investors who have invested in these companies should monitor the situation closely.

Daily Pivots

The Nifty trading range is 17810 to 18020.

Read previous -Daily Insights- here
Stocks Edge Higher
Stocks Edge Lower
Nifty–lifetime High!

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