WPI Negative for Second Consecutive Month on Falling Fuel and Goods Prices

At the close, the Nifty 50 was at 18,755.90 up by 0.21%

Today, the NSE Nifty 50 commenced the trading session on a positive note, opening at a significantly higher level. Throughout the day, it displayed a consistent upward movement, ultimately gaining 0.21 percent by the closing bell, indicating a positive market sentiment. The Nifty index successfully surpassed the key resistance level of 18,750, further reinforcing the bullish trend.

After a significant drop in US inflation, reaching its lowest point in over two years, investors are eagerly anticipating the Federal Reserve’s policy meeting and the subsequent release of its forward policy guidance. This highly anticipated event is scheduled for later, and investors are closely monitoring the outcome.

Bank Nifty: Down by 0.21%

Today, the Bank Nifty initiated the trading session on a strong note, experiencing a notable surge in its opening levels. However, as the day progressed, the index encountered a downward shift, concluding the session with a decline of 0.21 percent. This downturn resulted in the Bank Nifty closing in the red zone at 43,988.00. In parallel, the BSE Sensex witnessed a contrasting performance. It registered an increase of 0.14 percent during the trading session and ultimately closed in the green territory, reaching a high of 63,228.51.

In May, India experienced a noteworthy decrease in Wholesale Price Index (WPI) inflation, plummeting to -3.48 percent from -0.92 percent in April. This recent observation signifies the lowest level of WPI inflation witnessed in seven-and-a-half years, with the last instance of lower wholesale inflation recorded in November 2015 at -3.68 percent.

Bank Nifty

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

The gainers included IDFC First Bank with a 2.47% increase, AU Bank with a 1.03% increase, Kotak Bank with a 0.33% increase, and Bank of Baroda with a 0.13% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 3.38% decline, IndusInd Bank with a 1.06% decline, Axis Bank with a 0.87% decline, Punjab National Bank with a 0.67% decline, and ICICI Bank with a 0.47% decline. These results suggest that some banking stocks not performed better for the day.

Buzzing

The Indian IT sector’s performance in the recent quarter has remained subdued, indicating a tempered growth outlook for FY24. Several factors have contributed to this, including delayed spending in certain segments, concerns within the BFSI (Banking, Financial Services, and Insurance) sector, and apprehensions regarding a potential global economic slowdown.

Despite these challenges, Indian companies have successfully bolstered their profit margins through adept cost optimization strategies and resolving challenges on the supply side. It is worth noting that the Indian IT sector has a proven track record of resilience and adaptability, and we remain optimistic about its long-term growth prospects.

Moving forward, it will be crucial for companies in the Indian IT sector to continue to innovate and stay ahead of the curve in terms of technology and market trends. By doing so, they can position themselves for success in an increasingly competitive global landscape.

Advance Decline Ratio

Today, the advance-decline ratio was 1.12, and the market breadth was positive. The volatility index India Vix increased by 0.47 percent to settle at 11.16 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1230
Decliners – 1096
52Wk High –  150
52Wk Low – 13
High Band Hitters – 80
Low Band Hitters – 38
200d SMA – 17887
50d SMA – 18148
20d SMA – 18504

Top Gainers and Losers Stocks

The top gainers were Tata Consumer (+5.17%), Grasim (+2.42%), JSW Steel (+2.35%), Tata Steel (+2.34%), and Power Grid (+1.53%).

The top losers were IndusInd Bank (-1.06%), Bajaj Finance (-1.02%), Bharti Airtel (-0.93%), Axis Bank (-0.87%), and Hero MotoCorp (-0.83%).

Top Gainers and Losers Sector

The top gainers sectors were Metal (+1.42%), Oil & Gas (+0.91%), FMCG (+0.59%), Consumer Durables (+0.46%), and Realty (+0.28%).

The top losers sectors were Media (-0.56%), Financial Services (-0.26%), IT (-0.15%), and Pharma (-0.13%).

The Nifty Midcap 50 was up by 0.25 percent, while the Nifty Small Cap 50 was down by 0.42 percent on the day.

The Nifty Midcap 50 index currently closed at 9,819.65, while the Nifty Small Cap 50 index currently closed at 4,775.75.

SECTORS – NOTABLE ACTION
METAL +1.42%
OIL & GAS +0.91%
FMCG +0.59%
MEDIA -0.56%
FINANCIAL SERVICES -0.26%
IT -0.15%

Stocks Ban List

(SEBI) F&O ban list  (MANAPPURAM open at +121.00 and close at -121.10), (DELTACORP open at -247.10 and close at -243.30), (INDIACEM open at -228.00 and close at -227.25), (BHEL open at -85.10 and close at -83.85), (IEX open at +125.50 and close at -123.35), and (IBULHSGFIN open at +114.60 and close at -113.15) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned MANAPPURAM, DELTACORP, INDIACEM, BHEL, IEX, and IBULHSGFIN 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.
ZEEL, HAL, HINDCOPPER, BALRAMCHIN, L&TFH, RBLBANK, and PFC Face Possible Entry in Ban List.

Daily Pivots

As per the above pivots data, 18700 to 18800 is the Nifty 50 trading range.

Read previous -Daily Insights- here
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Caution Grips Domestic Indices Amid Data-Packed Week
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Early Gains Fizzle, Late Profit Booking Drags Indices

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