The markets on Tuesday moved in a narrow range, not opting to give a directional hint. The Nifty too traded in a limited range and ended the day almost flat. In the broader markets, though, stock-specific opportunities were available.

Benchmark indices remained stable as investors remained on the sidelines before the Reserve Bank of India's interest rate decision later in the week. The Sensex grew a trivial 5 points to 62,792 and the Nifty ended at 18,599 levels, while banking, auto, and financials emerged as winners, and FMCG, IT, and pharma as laggards. Ultratech Cement and Mazagon Dock Shipbuilders are both suggested as "Buys" by Pravesh Gour, Senior Technical Analyst at Swastika Investmart, while Persistent Systems is viewed positively as well.

The Securities and Exchange Board of India (SEBI) has proposed a new rule to track the source of foreign money for high-risk investors in an effort to root out questionable foreign investment in India’s publicly traded companies. If passed, the new rule would require any investor with more than INR 250 billion ($3.3 billion) invested locally or if they have a concentration of over 50% in any one Indian business group, to disclose full ownership details. Although some experts worry about excessive compliance, SEBI's consultation paper estimates that only 6% of foreign investment, or less than 1% of total market capitalization, will be considered high risk.

US stocks closed higher on Tuesday as investors awaited inflation data and the Federal Reserve's policy meeting next week. Fed fund futures suggest an 80% chance that the central bank will hold interest rates when it meets in June. Financials rose 1.33%, while the KBW regional banking index rose 5.41%. The S&P 500 and Nasdaq Composite both gained, while the Russell 2000 index of small-cap companies added 2.69%, with about three-and-a-half times as many advancers as decliners on the New York Stock Exchange. Megacap stocks were among major indexes that wavered, having added almost 20% since October lows.

"Bharat Forge has been a consistent performer but also witnesses volatility, which offers entry opportunities to investors at regular intervals. It has formed a base in the last 3 months and now looks set for a resumption of trend," Ajit Mishra, SVP - Technical Research, Religare Broking Ltd, said.

Torrent Power has signed an MoU with the government of Maharashtra for three Pumped Storage Hydro Projects of 5,700 MW capacity.

Auto industry companies in India are awaiting clarity on whether they will receive incentive funds for the first year of the ₹25,938 crore production-linked incentive scheme, which has been in effect for over a year. The standard operating procedure (SOP) for the scheme, which is required for products to be certified, was released on April 27, 2023, causing a delay. Companies are also concerned that key changes agreed upon by the industry and government have not been incorporated into the final draft of the SOP. Additionally, some manufacturers were wrongfully claiming subsidies in violation of conditions.

The lenders see value in selling the assets while ITNL wants a resolution by transferring the asset to its infrastructure investment trust (InvIT).

Analysts are crediting this drop to seasonality in the credit cycle when growth remains tepid in the first quarter. While both sets of banks saw a month-on-month dip, it was higher for private banks at 44 bps versus 18 bps for public sector banks.

The companies were earlier considering seeking an extension from the Department of Telecommunications (DoT) on the deadline to meet roll out obligations. But with the equipment makers assuring of supply of gear, the telcos have decided to set up the radios in all telecom circles to meet the basic roll out conditions.

In a circular on Tuesday, NSE said weekly, monthly and quarterly contracts of Bank Nifty will expire on Friday. Bank Nifty derivatives are the second most popular contracts after the benchmark Nifty with nearly 26% share in total options trading volume.

EPAM cut its sales growth guidance for 2023 by an unexpected 500 basis points citing a slowdown in discretionary spending. The company now sees its revenues lower by 2% on a year-on-year basis, compared to its earlier guidance of a 3% growth.

Bharat Forge, a part of the casting and forging industry, has a solid technical setup that suggests short-term traders can look to accumulate the stock on dips. While it is down about 10% from its record high of Rs 919, the stock has formed a strong base above Rs 740 levels and has managed to climb above the 50-Weeks Moving Average at Rs 791.

The S&P 500 and Nasdaq showed gains as investors awaited inflation data and the Federal Reserve's policy meet next week. Banks led a rally in economically sensitive sectors, with financials rising 1.2% to lead gains among the major S&P 500 sectors, while the KBW regional banking index jumped 6.1%.

Five out of ten Adani group stocks ended positively on Tuesday after the conglomerate announced that it had repaid loans totalling $2.65bn as part of its deleveraging programme. Adani Power, Adani Green Energy, Adani Ports, Ambuja Cements, and ACC all rose on the BSE, while shares in Adani Total Gas, Adani Wilmar, Adani Transmission and NDTV fell. The Adani Group has been seeking to win back investor trust after US short-seller Hindenburg Research published a report alleging accounting fraud and stock price manipulation. The group has denied all allegations.

For Adani Green Energy, Adani Transmission, and Adani Wilmar, the circuit limits have been revised to 10% from 5%. The biggest boost is for Adani Power as the circuit limit has been increased to 20% from 5%.

Shares of major US banks and regional lenders rose on Tuesday, with the KBW Regional Banking index reaching its highest level since April. This comes at a challenging time for the sector, given concerns over deposit flight, growing interest rates and exposure to commercial real estate.

The Securities Appellate Tribunal (SAT), which hears appeals against orders passed by SEBI, said violations by Brickwork Ratings "were not deliberate or fraught with malafides or fraud and therefore cannot result in the cancellation of the license".

Banking, IT and insurance are the three sectors that are quite popular right now. In fact, a handful of brokerages are also bullish on these sectors. According to Trendlyne data, these stocks have high analyst ratings and can even rally up to 40%. Let's take a look at these stocks.

Bajaj Finserv on Tuesday launched its mutual fund (MF) business. Known as Bajaj Finserv Mutual Fund, this will be India's 41st asset management company (AMC). The fund house will start rolling out products in the next 30 days. Ganesh Mohan will be the CEO of Bajaj Finserv AMC, the firm said in a press conference.

Indian shares closed little-changed on Tuesday, with a rise in autos and realty balancing out a fall in information technology stocks ahead of a widely expected rate hike pause by the US Federal Reserve, as well as the Reserve Bank of India this week.The blue-chip Nifty 50 index closed 0.03% higher at 18,599, while the benchmark S&P BSE Sensex rose 0.01% to 62,793. Meanwhile, marginal gains were witnessed in Bank Nifty.“Nifty formed a relatively large lower shadow, suggesting renewed buying interest at lower levels. However, positive follow-up through above 18650 is essential to end the recent consolidation,”said Amit Trivedi, CMT, Technical Analyst - Institutional Equities, YES SECURITIES.Here are the stock recommendations for Wednesday:

NDTV will exit the stock exchanges' short-term additional surveillance framework from Wednesday, following a rally in its stock prices. The announcement comes after Adani Enterprises was removed from the same ASM framework by stock exchanges earlier this month.

Multi-cap mutual funds invest in large-, mid-, and small-cap stocks, and mandate 65% of corpus in equity and equity-linked instruments. It offers the advantages of all three categories of stocks, offering moderate risks. Returns on five multi-cap mutual funds have beaten inflation, according to a list compiled.

India's largest derivative bourse National Stock Exchange of India (NSE) on Tuesday announced that it will shift the futures and options (F&O) expiry of Nifty Bank to Friday from Thursday. The new rule comes into effect from July 14. "The above shall be effective from trade date July 7, 2023, Friday and accordingly, all existing contracts with Thursday expiry will be revised to Friday on July 6, 2023, EOD. The first Friday expiry will be on July 14, 2023," NSE said in a circular. ET NOW's Managing Editor Nikunj Dalmia explains the significance of the move. Watch.

Dow falls 15.19 points; S&P 500 opens lower by 2.45 points and Nasdaq drops 29.84 points

On Tuesday, Indian equity indices made a slight recovery from their lows but ultimately closed flat. Sensex concluded the day with a marginal gain of 5 points, reaching the 62,793 level. Despite a lackluster trading session, 10 stocks from the BSE midcap index successfully scaled new 52-week highs. The 52-week metric is considered a vital technical indicator used by traders and investors to assess a stock's current value and forecast future price trends. It represents the highest price at which a stock has traded over the course of the past one year.

Nithin Kamath, co-founder and CEO of India's leading stock broker Zerodha, urges Indians to consider other investment options besides savings accounts and fixed deposits. He believes that the over Rs. 60 lakh crore held in savings bank accounts is earning sub-par returns. Even startups keep idle funds in their current bank accounts that generate no interest income instead of finding alternatives with better returns, he added. Kamath also suggests investing in T-bills, which currently generate more than bank fixed deposits and are known as the safest instrument in India.

The National Stock Exchange (NSE) in India has moved its weekly futures and options (F&O) expiry of Nifty Bank contracts to Friday from Thursday starting July 14. Analysts predict that increasing the volumes in the index will help traders allocate margins effectively and reduce volatility in Nifty on Thursdays. This change will bring about additional participation, as traders can use the same margin money on Friday in Bank Nifty that they use for Nifty and Bank Nifty on Thursdays. NSE's decision is also expected to boost turnover in the derivative segment.

Sectorally, buying was seen in realty, auto, and healthcare stocks, while selling was visible in IT, metals, and oil & gas stocks. Stocks that were in focus included names like Sharda Cropchem, which saw a massive increase in volumes to close with gains of over 10%, Mazagon Dock Shipbuilders closed with gains of over 4% and Bharat Dynamics hit a fresh 52-week high on Tuesday.

Fear gauge India VIX was up by 2.15% from 11.12 to 11.38 levels. Volatility negated its lower highs formation on daily frames but overall lower levels kept the index in a smaller range. Options data suggests a broader trading range between 18300 to 18800 zones, while an immediate trading range between 18450 to 18700 zones.

Closing Bell: Sensex snaps 2-day rally, ends flat; Nifty above 18,600; Suzlon Energy surges 8%, Gravita falls 5%

From the Sensex pack, UltraTech Cement and Kotak Bank were the top gainers, rising 2-3%.

“We have observed an improvement in credit metrics for a majority of the Adani Group companies in FY23 versus FY22, while a couple of them have managed to keep their credit metrics stable or seen only a modest deterioration,” the analyst at the Fitch Group unit said.

The National Stock Exchange (NSE) has suggested the exclusion of non-F&O stocks from the Nifty Next 50 index to improve the ease of replication for passive funds. The Nifty Next 50 represents 50 stocks from the Nifty 100 index after excluding the standard Nifty 50 stocks.

ICICI Securities warns that investors are increasingly willing to take higher risks for lower returns as the Nifty approaches record highs. The shift from abnormally low interest rates to normal levels may limit equity returns from risky assets. The brokerage firm predicts a modest 8% upside from the current levels, with SBI, Bharti Airtel, and BHEL among its top picks. Despite this risk, ICICI Securities notes that the earnings outlook has improved, citing the Q4FY23 earnings season, which saw a significantly higher number of beats and in-line results as compared to misses.

Shares of defence companies in India surged following an agreement between India and the US on a roadmap for military-industrial cooperation during the visit of US Secretary of Defence Lloyd Austin. Companies including Mazagon Dock, Hindustan Aeronautics, and Bharat Dynamics hit fresh 52-week highs. The initiative looks to change the paradigm for cooperation between the two countries' defence sectors and could provide India access to cutting-edge technologies.

RSI or the relative strength index computes the ratio of the recent upward price movements to the absolute price movement. The RSI ranges from 0 to 100. Herein StockEdge, in order to compute the RSI, has taken 14 days as the time period. Further, in case the RSI heads below 70 from above then it hints at a bearish signal. So, here are 5 largecaps that have seen such an RSI on June 5.

The National Stock Exchange (NSE) has made it harder for its only competitor, BSE, to challenge its monopoly-like dominance in the equity derivative market by delaying the expiry of futures and options contracts of Nifty Bank until Friday, instead of Thursday. Bengaluru-based options trader Rajesh Sriwastava highlighted that BSE Sensex would see liquidity decline, and more attention would flow towards Nifty Bank. Following the announcement, shares of BSE were trading over 2% lower. The shift in Nifty Bank expiry will boost NSE's banking index's standing and lead to more volume, ultimately limiting BSE's opportunities in the equity derivative market.

SEBI committee member Nithin Kamath has stated that although investment advisers are helpful to investors, they often set unrealistic expectations that can lead to disappointment. Underlining the positive impact advisors have had, Kamath said that when people expect to achieve returns they cannot realistically aspire to, they can end up being disenchanted. Speculating that such dissatisfaction could result in discouragement from further participation in the market, Kamath stressed that it is \"not really good for anyone.” SEBI is working on regulations to address the rise of unregistered investment advisers active on social media platforms.

RSI or the relative strength index computes the ratio of the recent upward price movements to the absolute price movement. The RSI ranges from 0 to 100. Herein StockEdge, in order to compute the RSI, has taken 14 days as the time period. Further, in case the RSI heads below 70 from above then it hints at a bearish signal. So, here are 5 largecaps that have seen such an RSI on June 5.

The National Stock Exchange (NSE) has moved the maturity day of their Nifty Bank futures and options contracts to Fridays. This change will give Nifty all the attention, and BSE Sensex and Bankex derivatives contracts, which expire on Fridays, will be affected. Market participants say the move will lead to an increase in volumes as well as volatility on Fridays. Asia's oldest exchange, BSE, had recently relaunched Sensex derivatives contracts and cut the contract size in response to increased competition. Both Nifty and Nifty Bank currently expire on Thursdays.

The Nifty IT index fell by 2.48% as all 10 constituents saw their stock prices drop following US firm EPAM's guidance cut. The firm cut its CY2023E revenue-growth outlook for the second time on the slowdown in discretionary spending by US companies; declines in shares ranged from 1% to more than 5%. EPAM expects a 2% CC revenue decline at the midpoint of the guided band, as total pipeline has fallen. Kotak Institutional Equities expects IT-company Q4 to be weaker than Q1FY24E, with delays in client decision-making and pullbacks in discretionary spending impacting the sector's growth.

European shares opened flat on Tuesday as worries of further interest rate hikes by major central banks in the face of slowing economic growth countered support from defensive healthcare stocks.

The Nikkei 225 rose 0.90% and the Topix index increased 0.74% in Tokyo despite early losses and profit-taking over in the US stock markets. Real-term wages for Japanese workers fell by 3% in April YoY, while household spending in April dipped by 4.4% in real terms from the last year, according to a recent government survey. Fast Retailing increased 1.72% to 34,750 yen, SoftBank Group rose 0.97% to 6,081 yen, Toyota surged 1.05% to 2,050 yen, and Nintendo picked up 0.60% to 6,120 yen.

While every industry faced supply chain issues in covid, one segment of consumer durable industry had more headwinds to deal with. Right from supply chain disruption to increased raw material prices in the post covid word and now higher inflation. However, after facing all the headwinds, some tailwinds are emerging. Will this bring them back in focus ?

The Nifty IT index fell by 2.48% as all 10 constituents saw their stock prices drop following US firm EPAM's guidance cut. The firm cut its CY2023E revenue-growth outlook for the second time on the slowdown in discretionary spending by US companies; declines in shares ranged from 1% to more than 5%. EPAM expects a 2% CC revenue decline at the midpoint of the guided band, as total pipeline has fallen. Kotak Institutional Equities expects IT-company Q4 to be weaker than Q1FY24E, with delays in client decision-making and pullbacks in discretionary spending impacting the sector's growth.

MACD or Moving average convergence divergence in stock market parlance, is a trend suggestive of the momentum indicator. The metric shows the relationship between the two moving averages of prices. For calculating MACD, 26-day EMA is subtracted from 12-day EMA. Also,A 9-day EMA of the MACD, called the signal line, is plotted on the top of the MACD, which provides the likely trading strategy in a stock i.e. a buy or a sell.

The Reserve Bank of India's upcoming June 6-8 MPC meeting may result in a pause in policy measures in light of the positive economic data. April's retail inflation rate hit an 18-month low, while GDP growth was 7.2% in FY23, a whole percentage point higher than expected. While the Indian Meteorological Department predicts a normal monsoon season, El Nino could still spark temporary food shortages. Despite inflation rates being under control, the RBI has warned the war against inflation is not over.

Suzlon Energy's shares increased by 6% to reach Rs 12 after the company announced it had surpassed 20 GW of installed wind turbine capacity worldwide. The energy provider has installed 12,467 turbines in 17 countries across six continents, according to a company statement. In the Q4FY23, Suzlon Energy reported a consolidated net profit of Rs 320 crore ($43m), compared to a net loss of Rs 205.52 crore in the year-ago period. The company's total income for the quarter dropped by 31% year on year to reach Rs 1700 crore, although its stock has risen 38% in the last month.

After a few weeks of upward movement, some of the IT stocks are once again witnessing pressure. Is the start of another round of fresh delivery based selling. Stock Reports Plus, powered by Refinitiv, is a comprehensive research report that evaluates five key components of 4,000+ listed stocks - earnings, fundamentals, relative valuation, risk and price momentum to generate standardized scores.