Volatile Market on the Monthly Expiry

At the close, the Nifty 50 was at 17,511.25 down by 0.25%

Nifty 50 started the day with a slight increase, but then declined by 0.25% and closed in the red. A decline in the Nifty 50 index generally indicates that the overall market sentiment is negative.

The equity market seems to be reacting to a few different factors. The minutes of the central bank policy meeting suggest that there are concerns over high inflation, which could lead to rate hikes. This is causing some caution among investors. Meanwhile, the US 10-yr treasury yield is staying high, which suggests that investors are also worried about inflation and potential rate hikes.

The dollar index is rising as the greenback benefits from hawkish Fed comments and rising geopolitical tensions. This suggests that investors are seeking safe-haven assets amid the uncertainty.

These factors are contributing to a cautious trading environment in the equity market, as investors try to assess the potential impact of inflation and rate hikes on the economy and corporate earnings.

Buzzing

Latest meeting minutes of the Federal Reserve, it appears that the US central bank is not fully convinced about the need for cooling inflation, and as a result, the markets’ optimistic bets on potential rate cuts in late 2023 have been crushed. This suggests that while rate hikes may be smaller than previously anticipated, they are still likely to happen.

The minutes of the latest meeting indicate that while the Fed may not be convinced that inflation will continue to rise, it is still concerned about the potential risks associated with it.

According to the economic research division of State Bank of India, the minutes from the Fed suggest a strong rationale for a 50-basis point increase in the funds’ rate at the March meeting. It should be noted that a basis point refers to a one-hundredth of a percentage point.

In the energy markets, the benchmark U.S. crude saw an increase of 37 cents, reaching $74.32 per barrel during electronic trading on the New York Mercantile Exchange. However, the contract had fallen by $2.41 on Wednesday to $73.95.

The price of Brent crude, which is used as the basis for international oil trading, rose by 37 cents to reach USD 80.82 per barrel in London, but it had dropped from its previous session’s value of $80.60 by $2.45.

Bank Nifty: Up by 0.01%

Bank Nifty opened lower (in the “red”), but managed to rise slightly by 0.01 percent by the end of the trading day, closing higher (in the “green”) at a level of 40,001.55. On the other hand, the BSE Sensex experienced a larger decline of 0.23 percent and closed lower (in the “red”) at a level of 59,605.80. It’s important to keep in mind that the performance of individual stocks and sectors can vary significantly from these broader indices, and that the stock market can be subject to significant volatility and fluctuations in the short term.

Sectors such as power and realty experienced a decline in their stock prices, losing over 1% each. On the other hand, sectors such as metals, PSU Banks, and fast-moving consumer goods (FMCG) companies saw some buying, indicating that their stock prices may have increased or remained stable.

Metals refer to companies involved in the production and processing of metals, such as steel, copper, and aluminum. PSU Banks refer to public sector undertaking banks, which are government-owned banks in India. FMCG companies are involved in the production and distribution of fast-moving consumer goods, such as food, beverages, personal care products, and household items.

Bank Nifty

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

The gainers included Federal Bank with a 2.36% increase, Axis Bank with a 1.58% increase, Punjab National Bank with a 1.36% increase, State Bank of India with a 1.26% increase and IDFC First Bank with a 1.22% increase. On the other hand, the biggest losers in the sector included IndusInd Bank with a 1.44% decline, HDFC Bank with a 0.63% decline, and Bank of Baroda with a 0.38% decline. These results suggest that some banking stocks performed better for the day.

Advance Decline Ratio

Today, the advance-decline ratio was 0.76, and the market breadth was negative. The volatility index India Vix decreased by 3.28 percent to settle at 15.08 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 950
Decliners – 1256
52Wk High –  19
52Wk Low – 192
High Band Hitters – 40
Low Band Hitters – 61
200d SMA – 17355
50d SMA – 17963
20d SMA – 17777

Top Gainers and Losers Stocks

The top gainers were Hindalco (+1.79%), Coal India (+1.63%), Axis Bank (+1.58%), JSW Steel (+1.33%), and Tata Motors (+1.29%).

The top losers were Asian Paint (-3.18%), LT (-1.86%), Titan (-1.63%), Divi’s Laboratories (-1.56%), and IndusInd Bank (-1.44%).

Top Gainers and Losers Sector

The top gainers sectors were Metal (+0.35%), and FMCG (+0.26%).

The top losers sectors were Realty (-1.78%), Media (-1.77%), Consumer Durables (-0.88%), Pharma (-0.20%), and Oil & Gas (-0.17%).

The Nifty Midcap 50 was down by 0.14 percent, while the Nifty Small Cap 50 up by 0.40 percent on the day.

The Nifty Midcap 50 index currently closed at 8,507.45, while the Nifty Small Cap 50 index currently closed at 4,186.45.

SECTORS – NOTABLE ACTION
METAL +0.35%
FMCG +0.26%
REALTY -1.78%
MEDIA -1.77%
CONSUMER DURABLES -0.88%

Stocks Ban List

(SEBI) F&O ban list (IDEA open at 7.00 and close at 6.70) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned IDEA from trading in the futures and options (F&O) segment of 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, IBULHSGFIN, and DELTACORP has a possibilites of entery in a ban list.

Daily Pivots

As per the above pivots data, 17430 to 17610 is the Nifty 50 trading range

Read previous -Daily Insights- here
Indian Stocks Rattled by Overnight Slump in US Markets
Upside Contingent on Crucial 17,900 Level as Nifty forms Bearish Candle
10 Tips for New Traders

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