Volatility Persists, but Nifty Ends on a High Note at 18,315 Mark

At the close, the Nifty 50 was at 18,315.10 up by 0.27%

NSE Nifty 50 commenced trading with a strong opening and registered a gain of 0.27 percent before concluding on a positive note. Notably, the Nifty index closed above the crucial level of 18300.

Despite some late-day buying on May 10, benchmark indices saw an uptick in response to the nervousness surrounding the US inflation data that is expected to influence the tone of the next FOMC meeting.

Interest rate-sensitive sectors, such as private banks, auto, and realty, witnessed a surge in buying activity. However, PSU banks, which have been experiencing intensified selling over the past few days, continued to observe a downtrend.

Amidst the uncertainties surrounding the US market, the domestic market exhibited a flatline trend, with investors avoiding a definitive direction and instead oscillating between gains and losses.

In the global arena, investors exercised caution in view of the upcoming US inflation data and a meeting between US political leaders to discuss fiscal concerns. Meanwhile, oil prices experienced a dip, with industry data revealing an unexpected increase in US crude stock, hinting at a possible fragility in demand.

Bank Nifty: Up by 0.31%

The Bank Nifty followed suit by initiating trade in the positive territory, with a gain of 0.31 percent, and went on to close in green at 43,331.05. In a similar vein, the BSE Sensex exhibited a rise of 0.29 percent and concluded the trading session in the green, reaching a high of 61,940.20.

Following a weak start, Bank Nifty made a robust recovery, buoyed by bullish sentiments. The support level at 43,000 proved to be a strong demand zone. At present, the index is facing immediate resistance at 43,500, and a breakthrough of this level would pave the way for further gains towards 44,000. Market participants are closely monitoring the forthcoming US CPI inflation data.

On 10/05/2023, the Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) bought stocks worth Rs. 8,094.74 Cr. and sold stocks worth Rs. 6,261.61 Cr., resulting in a net investment of Rs. 1,833.13 Cr. On the other hand, Domestic Institutional Investors (DII) purchased stocks worth Rs. 5,061.73 Cr. and sold stocks worth Rs. 5,851.40 Cr., resulting in a net outflow of Rs. 789.67 Cr.

Bank Nifty

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

The gainers included IndusInd Bank with a 2.77% increase, Bandhan Bank with a 0.75% increase, Federal Bank with a 0.58% increase, HDFC Bank with a 0.47% increase, and Kotak Bank with a 0.39% increase. On the other hand, the biggest losers in the sector included Punjab National Bank with a 3.58% decline, AU Bank with a 1.41% decline, IDFC First Bank with a 0.78% decline, and State Bank of India with a 0.24% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

IndusInd Bank Ltd. witnessed a rise of 2.58% in its share price from the previous day’s close of Rs 1,140.60. The stock’s last traded price was Rs 1,170.00. On May 08, 2023, a 200-day moving crossover occurred, with an average price gain of 6.61% within 30 days of this signal over the past 5 years. The company’s annual revenue growth of 16.51% outperformed its 3-year CAGR of 7.54%. Additionally, IndusInd Bank Ltd. reported a YoY increase of 21.28% in its advances, surpassing its 5-year CAGR of 9.24%. Over the last 18 years, only 3.43% of trading sessions witnessed intraday gains higher than 5%.

HDFC Life Insurance Company Ltd. The share price of HDFC Life Insurance Company Ltd. saw a rise of 1.80% from the previous day’s close of Rs 552.05. The stock’s last traded price was Rs 562.00. Over the past 3 years, the stock gave a return of 6.15% compared to Nifty 100, which yielded a return of 92.57%. On May 08, 2023, a 200-day moving crossover occurred, with an average price gain of 2.93% within 30 days of this signal over the past 5 years. With increasing life expectancy and urbanization, there is a growing demand for insurance products that provide coverage and also serve as a savings tool. However, the issue is that combining saving products with insurance results in lower margins for insurance companies.

UPL Ltd. The share price of UPL Ltd. saw a decline of -2.12% from its previous close of Rs 694.40, with the stock’s last traded price being Rs 679.70. Over the past 3 years, the stock has yielded a return of 90.46%, compared to Nifty 100, which gave a return of 92.57%.

On the sectoral front, Media emerged as the top gainer, registering a gain of 1.36%. Within this sector, TV18 Broadcast Limited gained 8.49%, Network18 Media & Investments Limited gained 4.71%, Hathway Cable & Datacom Limited gained 2.22%, and Zee Entertainment Enterprises Limited gained 1.69%. Meanwhile, the Metal sector was the top loser, declining by 0.25%. Within this sector, Ratnamani Metals & Tubes Limited lost 1.45%, Welspun Corp Limited lost 1.28%, NMDC Limited lost 0.73%, and Hindalco Industries Limited lost 0.52%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.15, and the market breadth was positive. The volatility index India Vix increased by 3.19 percent to settle at 13.08 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1210
Decliners – 1053
52Wk High –  49
52Wk Low – 15
High Band Hitters – 46
Low Band Hitters – 42
200d SMA – 17722
50d SMA – 17549
20d SMA – 17916

Top Gainers and Losers Stocks

The top gainers were IndusInd Bank (+2.77%), HDFC Life (+1.80%), Power Grid (+1.66%), Tata Motors (+1.27%), and BPCL (+1.27%).

The top losers were UPL (-2.00%), Dr. Reddy (-1.30%), Infosys (-0.53%), Hindalco (-0.52%), and Sun Pharmaceutical (-0.36%).

Top Gainers and Losers Sector

The top gainers sectors were Media (+1.36%), Realty (+0.86%), Oil & Gas (+0.80%), Auto (+0.75%) and FMCG (+0.57%).

The top losers sectors were Metal (-0.25%), IT (-0.12%).

The Nifty Midcap 50 was up by 0.06 percent, while the Nifty Small Cap 50 was up by 0.07 percent on the day.

The Nifty Midcap 50 index currently closed at 9,158.00, while the Nifty Small Cap 50 index currently closed at 4,471.95.

SECTORS – NOTABLE ACTION
MEDIA +1.36%
REALTY +0.86%
OIL & GAS +0.80%
METAL -0.25%
IT -0.12%

Stocks Ban List

(SEBI) F&O ban list  (CANBK open at 299.80 ↓ and close at 300.80 ↓ ),(GNFC open at 591.00 ↓ and close at 598.75 ↑ ), (BHEL open at 79.20 ↓ and close at 80.60 ↑ ) and (MANAPPURAM open at 117.00 ↑ and close at 114.45 ↓ ) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned CANBK, GNFC, BHEL, and MANAPPURAM 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.

It seems that BHEL, GNFC and MANAPPURAM may be at risk of being added to the ban list.

MANAPPURAM has the possibilites of exit from ban list.

Daily Pivots

As per the above pivots data, 18230 to 18370 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Flat as Late Sell-Off Erases Early Gains
Nifty Bounces Back as Financials Recover from Friday’s Decline
Nifty Falls Below 18,100 as HDFC Shares Drop Up to 6%

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