Upside Contingent on Crucial 17,900 Level as Nifty forms Bearish Candle

At the close, the Nifty 50 was at 17,826.70 down by 0.10%

Nifty 50 index started the day on a positive note, but then declined by 0.10% and closed in the negative territory. Additionally, the index closed below the level of 17830.

A bearish candle on the daily chart of the Nifty 50 index typically indicates that the market has closed lower than the opening price for the day. This suggests that the bears, or the sellers, have been in control of the market sentiment for that particular day, which can be seen as a negative signal for the broader market.

It is not uncommon for stock markets to be range-bound when there is a lack of fresh triggers or catalysts to guide investor sentiment. The US markets were closed on February 20, which likely resulted in a lack of fresh global cues for Indian investors to react to. In such cases, market participants may adopt a cautious stance and refrain from making any major investment decisions.

Buzzing

The FMCG sector is considered to be a reliable indicator of a country’s economic health. In India, the revenue for the FMCG sector has been trending upward due to price hikes to offset raw material inflation. However, this has come at the expense of reduced volumes.

The Hindenburg Research report that you mentioned is a research firm that is known for publishing short-seller reports that can cause temporary stock price declines for companies it targets. The report you referred to flagged the exposure of Indian banks, especially public sector banks, to the Adani Group, which is a major Indian conglomerate with interests in sectors such as infrastructure, energy, and logistics.

Investors were rattled by the Hindenburg Research report, which highlighted the potential exposure of Indian banks, particularly public sector banks, to the Adani Group. This report was swiftly refuted by individual banks and the Reserve Bank of India (RBI).

The State Bank of India (SBI) recently released a statement indicating that its total exposure to the Adani Group was 0.88% of its loan book, or approximately Rs 27,000 crore. Meanwhile, Bank of Baroda’s exposure to the Group stood at 0.60% of its net loans as of the end of the third quarter of FY23.

Bank Nifty: Down by 0.07%

Bank Nifty opened the session on a positive note at 40,785 and traded in the range of 40,500-40,950. However, it closed the session 28 points down at 40,674, indicating that the market sentiment may have turned negative towards the end of the session.

The Bank Nifty is an index of the National Stock Exchange of India that comprises the most liquid and large capitalized banking stocks listed on the exchange. The Bank Nifty opened in the green, but then declined by 0.07 percent and closed in the red at 40,673.60.

Similarly, the BSE Sensex is an index of the Bombay Stock Exchange that tracks the performance of the top 30 companies listed on the exchange. The Sensex also opened on a positive note, but then declined by 0.03 percent and closed in the red at a low of 60,672.72.

The Nifty PSU Bank Index experienced a decline of nearly two percent, while the Information Technology, Metal, Pharma, and Auto Indices all saw losses ranging from 0.2 to 0.88 percent.

Bank Nifty

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

The gainers included Federal Bank with a 1.15% increase, HDFC Bank with a 0.59% increase, ICICI Bank with a 0.32% increase and AU Bank with a 0.15% increase. On the other hand, the biggest losers in the sector included Bank of Baroda with a 2.68% decline, Bandhan Bank with a 2.50% decline, Punjab National Bank with a 1.21% decline, IndusInd Bank with a 0.75% decline and IDFC First Bank with a 0.73% decline. These results suggest that banking stocks not performed better for the day.

Advance Decline Ratio

Today, the advance-decline ratio was 0.60, and the market breadth was negative. The volatility index India Vix increased by 4.67 percent to settle at 14.01 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 835
Decliners – 1389
52Wk High –  44
52Wk Low – 151
High Band Hitters – 54
Low Band Hitters – 68
200d SMA – 17343
50d SMA – 18007
20d SMA – 17824

Top Gainers and Losers Stocks

The top gainers were NTPC (+3.25%), Britannia (+1.17%), Tata Steel (+0.98%), Reliance (+0.86%), and Power Grid (+0.83%).

The top losers were Adani Enterprises (-3.55%), Apollo Hospitals (-2.32%), Coal India (-1.72%), Bajaj Auto (-1.71%), and Tata Motors (-1.53%).

Top Gainers and Losers Sector

The top gainers sector were FMCG (+0.11%), Financial Services (+0.05%) and Consumer Durables (+0.04%).

The top losers sectors were Realty (-1.20%), IT (-0.88%), Media (-0.86%), Oil & Gas (-0.34%), and Metal (-0.33%).

The Nifty Midcap 50 was down by 0.43 percent, while the Nifty Small Cap 50 down by 0.34 percent on the day.

The Nifty Midcap 50 index currently closed at 8,609.95, while the Nifty Small Cap 50 index currently closed at 4,226.65.

SECTORS – NOTABLE ACTION
FMCG +0.11%
FINANCIAL SERVICES +0.05%
CONSUMER DURABLES +0.04%
REALTY -1.20%
IT -0.88%
MEDIA -0.86%

Stocks Ban List

Stocks are not listed in the (SEBI) F&O ban list today.

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.

IDEA, ADANIENT, DELTACORP, PNB and INDIACEM has a possibilites of entery in a ban list.

Daily Pivots

As per the above pivots data, 17770 to 17910 is the Nifty 50 trading range

Read previous -Daily Insights- here
10 Tips for New Traders
Caution Persists as Stocks Weaken Ahead of US Fed Minutes
Cement Shares Buck Market Downturn

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