Nifty Bounces Back as Financials Recover from Friday’s Decline

At the close, the Nifty 50 was at 18,264.40 up by 1.08%

NSE Nifty 50 commenced at a remarkable high point and surged ahead by a notable 1.08 percent throughout the day, ultimately closing in the profitable green zone. It is noteworthy that the Nifty index stood resolutely above the impressive 18200 mark, marking an impressive milestone for the day.

Monday’s trading session in India saw a positive turn, with shares experiencing a notable uptick, thanks to the resurgence of the financial sector, the robust performance of domestic earnings, and the general improvement in market sentiment, which was further boosted by the release of impressive economic data from the United States. This confluence of positive factors contributed to a more optimistic outlook among investors and traders, with the potential for further growth and prosperity in the near future.

Benchmark indices led by Reliance, Bajaj Twins & HDFC Twins rose over one percent while other big banks also performed well. Mid and Small Indices rallied smartly as most sectoral indices closed in the green. The Nifty crossed the 18250 mark, with good market breadth as shown by the Advance-Decline ratio.

Bank Nifty: Up by 1.46%

A day of positive movements and bullish trends, as evidenced by the Bank Nifty’s impressive opening in the green zone, rising by an impressive 1.46 percent and holding strong until the end of trading, ultimately closing at a notable 43,284.00 in the profitable green. In a similar vein, the BSE Sensex exhibited an upward surge of 1.16 percent throughout the day, ultimately closing at a noteworthy high of 61,764.25, adding to the sense of optimism in the market. These noteworthy movements indicate a promising outlook for investors and traders, and signal a potentially profitable period ahead.

The majority of the 13 major sectoral indexes saw an upward movement, with eleven of them recording notable gains. The financial sector, which holds significant weightage in the market, exhibited a particularly impressive performance, surging by 1%. This positive momentum was also reflected in the Nifty Bank and Nifty Private Bank indexes, both of which rose by over 1%, further contributing to the overall bullish outlook of the market. These strong showings across key sectors point towards a potentially fruitful period for investors and traders alike.

After a poor showing on Friday, where the financials index experienced its worst day in over three months with a 2.34% decline, the sector rebounded on Monday, despite being dragged down by Housing Development Finance Corporation and HDFC Bank due to concerns of potential foreign funds outflows from their merged entity.

Bank Nifty

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

The gainers included IndusInd Bank with a 5.12% increase, AU Bank with a 2.51% increase, Bandhan Bank with a 1.94% increase, Axis Bank with a 1.69% increase and IDFC First Bank with a 1.66% increase. On the other hand, the biggest losers in the sector included Punjab National Bank with a 0.48% decline, and Bank of Baroda with a 0.11% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

The start of the week saw benchmark indices surge by over 1%, led by heavyweights such as Reliance, Bajaj Twins, and HDFC Twins, while significant players in the banking sector also contributed to the positive sentiment. Additionally, mid and small indices rallied impressively, with most sectoral indices closing in the green, and the Nifty reaching above the 18250 mark. The market breadth was largely positive, with a good advance-decline ratio, signaling potential growth opportunities for investors and traders.

Strong domestic earnings and positive job data from the US have helped to boost investor confidence in the Indian equity market, with concerns over the US economic slowdown beginning to dissipate. The weakening of the US dollar is also encouraging greater foreign investment, with FIIs remaining net buyers for seven consecutive days. The upcoming US inflation report, due on Wednesday, is anticipated to be in line with March’s 5.0% figure, further contributing to a sense of stability in the market.

IndusInd Bank Ltd. saw a notable increase in its share price, rising by 4.82% from its previous close of Rs 1,073.30 to a last traded price of 1,125.00. The stock has yielded a 3-year return of 143.74%, outperforming the Nifty 100, which yielded a return of 91.83%. Furthermore, the company’s annual revenue growth of 16.51% has exceeded its 3-year CAGR of 7.54%. IndusInd Bank Ltd. also reported a YoY increase of 21.28% in its advances, surpassing its 5-year CAGR of 9.24%, which bodes well for the bank’s growth prospects.

Coal India Ltd. The share price of Coal India Ltd. experienced a decline of -1.92% from its previous close of Rs 237.40, with the stock last trading at 232.85. Over the course of the last 3 years, the stock has generated a return of 84.03%, which is lower than the 242.49% return generated by the Nifty Metal index. In comparison to the Nifty 100, which yielded a return of 91.83%, Coal India Ltd. has also underperformed.

Advance Decline Ratio

Today, the advance-decline ratio was 1.37, and the market breadth was positive. The volatility index India Vix increased by 2.76 percent to settle at 12.64 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1338
Decliners – 980
52Wk High –  95
52Wk Low – 15
High Band Hitters – 68
Low Band Hitters – 54
200d SMA – 17698
50d SMA – 17531
20d SMA – 17848

Top Gainers and Losers Stocks

The top gainers were IndusInd Bank (+5.12%), Tata Motors (+4.92%), Bajaj Finance (+4.09%), Bajaj Finserv (+3.29%), and ONGC (+2.74%).

The top losers were Coal India (-1.83%), Adani Enterprises (-1.47%), Sun Pharma (-0.88%), Dr. Reddy (-0.74%), and Britannia (-0.58%).

Top Gainers and Losers Sector

The top gainers sectors were Auto (+1.79%), Realty (+1.64%), Financial Services (+1.47%), FMCG (+0.73%), and IT (+0.73%).

The top losers sectors were Media (-0.60%).

The Nifty Midcap 50 was up by 1.24 percent, while the Nifty Small Cap 50 was up by 0.81 percent on the day.

The Nifty Midcap 50 index currently closed at 9,149.15, while the Nifty Small Cap 50 index currently closed at 4,475.40.

SECTORS – NOTABLE ACTION
AUTO +1.79%
REALTY +1.64%
FINANCIAL SERVICES +1.47%
MEDIA -0.60%

Stocks Ban List

(SEBI) F&O ban list (GNFC open at 599.50 and close at 599.20), (MANAPPURAM open at 107.70 and close at 110.95) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned GNFC 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.

Daily Pivots

As per the above pivots data, 18140 to 18340 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Falls Below 18,100 as HDFC Shares Drop Up to 6%
Nifty50 Surges with 166-Point Gain, Resumes Upward Momentum
Nifty’s Short-Term Trend Cools off after a Bullish Move

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