Volatile Session Ends on a Sour Note for Indian Benchmark Indices

At the close, the Nifty 50 was at 19,079.60 down by 0.32%

The NSE Nifty 50 commenced the day optimistically, opening with gains but later faced a 0.32% dip, closing below the critical 19,100 level. The Indian benchmark indices navigated through a turbulent session marked by persistent selling pressure across sectors. Despite a positive start, the indices relinquished their early gains and ultimately ended the day near their lowest point.

This market volatility can be attributed to various factors, including expectations of sustained high interest rates in the United States. The continuous selling of Indian shares by foreign investors, drawn by higher US yields, has also contributed to the consolidation observed in the Indian market.

Caution has seeped into the market, particularly in anticipation of the upcoming US Federal Reserve policy meeting. This cautious sentiment has had a ripple effect on both Asian and developed markets. Notably, IT stocks experienced slight losses, while mid- and small-cap stocks demonstrated resilience, benefitting from recent valuation adjustments and the readiness of domestic investors to buy during market downturns. Optimism in the mid- and small-cap segments is fueled by hopes of increased demand with the festive season on the horizon.

Bank Nifty: Down by 0.45%

In recent trading sessions, the Bank Nifty displayed an encouraging start by opening in positive territory, but ultimately closed in the negative, shedding 0.45% and settling at 42,845.95. Similarly, the BSE Sensex witnessed a decline of 0.37% and wrapped up the day at a lower point, specifically at 63,874.93.

These downward movements indicate a notable shift in market sentiment, possibly signaling the conclusion of the relief rally. An important indicator to observe is the negative crossover in the hourly momentum indicator, occurring from above the equilibrium line. This suggests the onset of a new market cycle, one that could potentially lead to a downturn in the Bank Nifty.

On the sectorial front, the Realty sector surged by 1.27%, with significant gains from key players. Macrotech Developers Ltd. demonstrated remarkable growth with a gain of 3.47%, while Oberoi Realty Ltd. also secured a substantial increase of 1.66%. Conversely, the auto sector faced challenges in recent trading sessions, with a 0.67% decrease in value. Mahindra & Mahindra Ltd. experienced a notable loss, declining by -2.26%, and Eicher Motors Ltd. recorded a decrease of -1.84%.

In the current financial landscape, Foreign Institutional Investors (FIIs/FPIs) displayed a net selling behavior with a total sale value of Rs. 11,636.22 Crore and a purchase value of Rs. 10,940.20 Crore. This resulted in a net outflow of Rs. 696.02 Crore. Conversely, Domestic Institutional Investors (DIIs) were net buyers, with a purchase value of Rs. 6,479.49 Crore and a sale value of Rs. 6,139.24 Crore, leading to a net inflow of Rs. 340.25 Crore.

Bank Nifty

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

The gainers included Kotak Bank with a 1.08% increase, AU Bank with a 0.57% increase, State Bank of India with a 0.13% increase. On the other hand, the biggest losers in the sector included Bank of Baroda with a 1.13% decline, IndusInd Bank with a 0.94% decline, ICICI Bank with a 0.93% decline, Axis Bank with a 0.88% decline, and HDFC Bank with a 0.68% decline. These results suggest that some banking stocks not performed better for the day.

Buzz

The Indian rupee exhibited stability against the US dollar, settling at 83.26, in a trading session influenced by various factors. Weakness in domestic equity markets and continuous foreign fund outflows had a neutralizing effect on investor sentiments. However, the rupee found support from declining crude oil prices, despite ongoing geopolitical tensions in the Middle East.

In interbank foreign exchange, the rupee’s trading range remained narrow, opening and settling at 83.26 against the US dollar. Throughout the day, the currency experienced minimal fluctuations, reaching an intraday high of 83.25 and a low of 83.27, emphasizing its range-bound behavior.

The previous trading session saw the rupee closing just 1 paisa lower at 83.26, indicating a relatively flat performance. Simultaneously, the dollar index, measuring the greenback’s strength against a basket of currencies, showed a slight decrease of 0.07%, settling at 106.04.

Notably, Brent crude futures, the global oil benchmark, registered a 0.90% increase, reaching $88.24 per barrel. This price movement in the crude oil market holds significance for the rupee’s stability, as it impacts India’s trade balance and inflation.

Buzzing

SBI Life Insurance Company Ltd. witnessed a notable uptick, with its share price increasing by 3.30% to reach Rs 1,369.95. A “Buy Signal” was triggered as the 50-day moving average crossed over, a trend that has historically resulted in an average price gain of 4.31% within 30 days over the last 5 years. It’s essential to note that while the stock is showing strength, the company’s sales have contracted by 3.96%. This marks the first revenue contraction in the last 3 years. Additionally, SBI Life Insurance Company has been prudent in managing expenses, allocating less than 1% of its operating revenues towards interest costs and 2.54% towards employee expenses for the year ending March 31, 2023.

Sun Pharmaceutical Industries Ltd., on the other hand, experienced a decrease in its share price by -2.71% to Rs 1,085.00. A “Sell Signal” has emerged with the Weekly MACD crossover, a pattern that has historically resulted in an average price decline of -6.44% within 7 weeks over the last decade. Despite this, the company boasts impressive fundamentals, with an annual revenue growth of 12.49%, surpassing its 3-year CAGR of 9.87%. Sun Pharmaceutical Industries also outperformed its 5-year average return on equity (ROE), achieving an ROE of 15.13% in the year ending March 31, 2023, compared to its 5-year average of 8.89%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.05, and the market breadth was positive. The volatility index India Vix increased by 2.91 percent to settle at 11.83 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1229
Decliners – 1169
52Wk High –  63
52Wk Low – 17
High Band Hitters – 123
Low Band Hitters – 49
200d SMA – 18625
50d SMA – 19576
20d SMA – 19482

Top Gainers and Losers Stocks

The top gainers were SBI Life (+3.30%), Titan (+2.49%), HDFC Life (+2.19%), Kotak Bank (+1.08%), and Asian Paint (+1.08%).

The top losers were Sun Pharmaceutical (-2.71%), M&M (-2.26%), Eicher Motors (-1.84%), LTIM (-1.67%), and ONGC (-1.51%).

Top Gainers and Losers Sector

The top gainers sector were Realty (+1.27%), Media (+0.91%), Consumer Durables (+0.61%), and FMCG (+0.16%).

The top losers sector were Auto (-0.67%), Pharma (-0.62%), Oil & Gas (-0.53%), Metal (-0.24%), and Financial Services (-0.19%).

SECTORS – NOTABLE ACTION
REALTY +1.27%
MEDIA +0.91%
CONSUMER DURABLES +0.61%
AUTO -0.67%
PHARMA -0.62%
OIL & GAS -0.53%

Stocks Ban List

Today, the Securities and Exchange Board of India (SEBI) has not included any stock in the F&O ban list.

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.

GNFC, and MANAPPURAM stocks has the possibilities of enterance in the ban list.

Daily Pivots

As per the above pivots data, 19000 to 19200 is the Nifty 50 trading range.

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