Mid-market update: Nifty recovers from day’s low, PSU Bank stocks and broader markets under selling pressure

Indian benchmark indices have managed to recover from the lower levels on Monday. In the afternoon trading session, the 30-share S&P BSE Sensex was seen trading above the 74,100 mark with gains of about 250 points. Nifty 50 index has regained its 22,500 mark and was trading up by 0.18% or 40 points. Meanwhile, Bank Nifty rose 0.32% above the 49,000 mark.

The Nifty 50 index was seen trading within the range of the first hour of the trading session. The first-hour range of the Nifty 50 index was about 156 points. From the day’s high, the index marked an intraday low during the first hour itself.

On the options front, aggressive call (CE) writing is seen at the strike price of 22,600 and 22,500. On the other hand, aggressive put (PE) writing is seen at the strike price of 22,500. Nearly 22 lakh shares in the open interest were added at the 22,500 PE strike, which suggests this could be the immediate support for the index. That said, writing at the 22,500 CE is also aggressive with an open interest addition of 16.03 lakh shares added. It is to be seen who wins because high volatility has kept the market participants guessing.

Talking about the broader market performance, Nifty Midcap 100 and Nifty Smallcap 100 are under selling pressure with a loss of 0.31% and 0.94%, respectively. Considering selling pressure in the broader markets, the market breadth is in favour of declining stocks. About 1,473 stocks have declined as against 635 stocks advancing.

Sector-wise, Nifty PSU Bank (-3.19%) is the top loser, followed by Nifty Media (-1.9%) and Nifty Energy (-1.17%). On the other hand, Nifty Realty (+2.15%) is the top gainer followed by Nifty IT (+1.28%).

The Dow Jones futures were seen trading marginally higher at 38,887 level.

Some of the stocks which were seen buzzing on Monday were Titan Company and Power Finance Corporation Ltd.

Shares of Titan Company have seen the sharpest single-day fall since July 2022. The stock plummeted over 6.5% on Monday after the earnings fell short of expectations. Furthermore, Jewellery segment margins are expected to stay soft in the near future due to rising competition and increased gold prices.

Power Finance Corporation stock is currently trading lower by 8%, it has recovered substantially from the intraday low of ₹416.55 and is currently trading at ₹441. The stock has seen such a drastic fall amid RBI project financing guidelines.