Positive Start Markets Gain on Global Support

NiftyTrader • July 31, 2023

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Index	Price	Change	% Chg
Nifty 50	19,753.80	+107.75	+0.55%
Nifty Bank	45,651.10	+183.00	+0.40%
BSE SENSEX	66,527.67	+367.47	+0.56%

At the close, the Nifty 50 was at 19,753.80 up by 0.55%

Today’s NSE trading session showcased a promising start for the Nifty 50 index, opening lower but displaying resilience as it surged by a notable 0.55 percent, ultimately closing in the positive territory. The index successfully surpassed the crucial 19700 mark, indicating a positive sentiment in the market.

India’s benchmark stock indices have regained their upward momentum in sync with the prevailing global market trend. The positive movement has been reinforced by the prospect of easing inflationary pressures worldwide, hinting at a possible end to the era of policy tightening.

A recent favorable development contributing to this positive sentiment is the gradual deceleration of the Eurozone’s inflationary rate throughout July, recording at 5.3 percent, aligning perfectly with market predictions. This outcome has bolstered optimism in the financial landscape.

Additionally, preliminary estimates reveal that the Eurozone economy grew by 0.3 percent during the second quarter of the year, slightly exceeding market expectations. This added positive economic data has further fueled the ongoing rally in Indian indices and global markets.

Bank Nifty: Up by 0.40%

The Bank Nifty started its trading session on a positive note, opening in the green. However, it experienced a brief dip during the session. Nevertheless, the index showed resilience and managed to register a growth of 0.40 percent, ultimately closing in the green zone at a value of 45,651.10. Similarly, the BSE Sensex also displayed a bullish trend, surging by 0.56 percent and achieving a high closing value of 66,527.67.

The local market sentiment received a significant boost from the robust performance of Asian and European indices, contributing to a strong sense of buoyancy. Notably, the previously downturned sectors, including Metals, IT, Power, and Oil & Gas stocks, emerged as the standout performers in recent sessions.

In the current sectoral landscape, the Metal industry has witnessed significant growth, achieving a remarkable high of 1.77%. Notably, Hindustan Copper Ltd. experienced a substantial gain of 10.72%, while NMDC Ltd. also performed well with a gain of 4.13%. Conversely, the FMCG sector faced a slight setback today, declining by 0.62%. Within this domain, Marico Ltd. encountered a loss of -2.13%, and United Breweries Ltd. experienced a decline of -1.99%.

Bank Nifty

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

The gainers included IDFC First Bank with a 3.93% increase, Bandhan Bank with a 3.22% increase, IndusInd Bank with a 1.13% increase, AU Bank with a 0.94% increase and Bank of Baroda with a 0.57% increase. On the other hand, the biggest losers in the sector included Kotak Bank with a 1.06% decline, Punjab National Bank with a 0.24% decline. These results suggest that some banking stocks performed better for the day.

Buzz

On the first day of a data-heavy week that holds crucial implications for US monetary policy, the Indian rupee concluded Monday’s trading with minimal fluctuations. The closing exchange rate against the dollar stood at 82.2450, nearly unchanged from the previous Friday’s closing rate of 82.2475. Throughout the month, the Indian currency experienced a slight decline of 0.2 percent. Notably, the rupee has been confined to a “well-defined” range since October of the previous year, with a lower cap at approximately 83 and the upper cap expanding to the 81.60 level.

In the oil market, prices showed upward movement on Monday, signaling the potential for the largest monthly gains in over a year. This upward trajectory was driven by the anticipation that Saudi Arabia would extend its voluntary output cuts into September, leading to tighter global supply conditions. Brent crude futures saw a rise of 34 cents, reaching $85.33 per barrel, while US West Texas Intermediate crude experienced a price increase of 54 cents, reaching $81.12 per barrel.

Buzzing

Power Grid Corporation of India Ltd. has witnessed a notable increase in its share price, rising by 3.04% from its previous close of Rs 258.20. The current trading price stands at Rs 266.05. Over the last three years, the stock has demonstrated an impressive return of 93.08%, outperforming the Nifty 100’s return of 74.34%. Moreover, the company experienced a remarkable quarter-on-quarter revenue growth of 8.91%, marking the highest in the past three years. Investors can also look forward to receiving a dividend of Rs 4.75 per share, which was announced on 19 May 2023, with a record date of 8 Aug 2023.

On the other hand, Apollo Hospitals Enterprise Ltd. has seen a decline in its share price, falling by -3.03% from its previous close of Rs 5,346.95. The current trading price for the stock is Rs 5,185.00. Despite this recent dip, the stock has delivered an impressive 3-year return of 219.3%, significantly surpassing the return of 56.98% provided by S&P BSE Healthcare during the same period. This exceptional performance also outpaced the Nifty 100’s return of 74.34%. Additionally, the company has declared a dividend of Rs 9.0 per share, scheduled for payment on 30 May 2023, with a record date of 19 Aug 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 1.31, and the market breadth was positive. The volatility index India Vix increased by 2.73 percent to settle at 10.41 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 6071
Decliners – 4647
52Wk High – 246
52Wk Low – 25
High Band Hitters – 98
Low Band Hitters – 67
200d SMA – 18180
50d SMA – 19042
20d SMA – 19599

Top Gainers and Losers Stocks

The top gainers were NTPC (+3.62%), Power Grid (+3.04%), ONGC (+3.03%), Adani Ports (+2.75%), and Tech Mahindra (+2.56%).

The top losers were Apollo Hospital (-3.03%), Britannia (-1.90%), HDFC Life (-1.87%), Bajaj Finance (-1.19%), and Kotak Bank (-1.06%).

Top Gainers and Losers Sector

The top gainers sectors were Metal (+1.77%), IT (+1.49%), Auto (+1.10%), Oil & Gas (+1.03%) and Consumer Durables (+0.95%).

The top losers sectors were FMCG (-0.62%).

The Nifty Midcap 50 was up by 1.27 percent, while the Nifty Small Cap 50 was up by 1.19 percent on the day.

The Nifty Midcap 50 index currently closed at 10,822.50, while the Nifty Small Cap 50 index currently closed at 5,294.75.

SECTORS – NOTABLE ACTION
METAL +1.77%
IT +1.49%
AUTO +1.10%
FMCG -0.62%

Stocks Ban List

As of today, the Securities and Exchange Board of India (SEBI) has not listed any stock in the ban list for Futures and Options (F&O) trading.

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.