Rupee at record low against dollar and inflation concerns keep the bulls at bay.
Nifty below 16000. The benchmark indices finished in the red for the third day in a row. Today, the Nifty closed below 16000 after hovering around 16200 level for three days. Despite several attempts by bulls, the record low of the rupee against dollar kept the bears in action.
Even encouraging economic news, such as increased automotive sales in the first quarter, stable retail inflation, May month IIP at a one-year high, and the RBI allowing trade settlement in Indian rupees, failed to raise market mood. All eyes are on rising dollar and inflation.
Today Nifty opened with a gap up of 70 points, but towards the end of the trading session it fell 92 points, or 0.57 percent, to close at 15967. During the day, it reached a high of 16140 and a low of 15950. The Nifty made a lower high and lower low compared to previous closing values.
The advance-decline ratio was 0.85 today, while market breadth was negative. The volatility index India Vix, on the other hand, decreased 0.14 percent to settle at 18.55. Furthermore, FIIs were net sellers today.
DAILY MARKET ACTION
Advancers – 973
Decliners – 1141
52Wk High – 21
52Wk Low – 19
High Band Hitters – 104
Low Band Hitters – 46
200d SMA – 17099
50d SMA – 16049
20d SMA – 15778
Nifty Top Gainers and Losers
The top gainers on the Nifty 50 were Divi’s Laboratories (+2.62%), JSW Steel (+2.29%), Hindustan Unilever (+1.94%), Cipla (+1.85%), and Grasim Industries (+1.66%).
Meanwhile, the top losers were IndusInd Bank (-3.13%), HDFC (-2.53%), Bharti Airtel (-2.46%), HDFC Bank (-2.32%), and Reliance (-1.71%).
Nifty Sectors & Broader Indices
On the sectoral front, it was a mixed show today. Nifty oil and gas, financial services, and IT were the biggest losers, while pharma, FMCG, and metals were the biggest winners. The large-cap stocks took the beating while the broader indices outperformed the benchmarks. The Nifty Midcap 50 was up 0.46 percent, while the Nifty Small cap 50 was up 0.13 percent.
SECTORS – NOTABLE ACTION
OIL & GAS -1.32%
FINACIAL SERVICES -0.97%
Earlier, Nifty closed the prior gap down around 16200 levels, and as noted previous blog, we may see some volatility around this level as the market attempts to take out the 16200 level and move forward. The more it hovers around 16200 levels, the more likely it may break on the downside.
The Nifty trading range for tomorrow is 15890 to 16090.
The Nifty has recorded lower highs and lower lows in the last three trading sessions, which is a bearish indicator. Inflation and rising dollar combined with a sluggish earnings season is keeping the bulls at bay. The sideways movement with considerable volatility may continue in the short term.
This article is only for educational purposes and is not an investment advice.