Market Bounces Back as Dollar and Treasury Yields Take a Dive

At the close, the Nifty 50 was at 19,689.85 up by 0.91%

In a promising development, the NSE Nifty 50 exhibited strong momentum today, posting a notable gain of 0.91 percent. This upward trend persisted throughout the trading day, culminating in a positive close, with the Nifty comfortably above the 19650 mark. This resurgence is a welcome relief for investors, as Indian benchmark indices rebounded diligently from losses in the previous session.

The global market sentiment played a crucial role in driving this revival, with reassuring statements from US Federal Reserve officials alleviating concerns of imminent interest rate hikes. Despite the ongoing Israel-Hamas conflict, the reduction in rate hike anxieties injected fresh optimism into the Indian market.

Yesterday’s downturn, primarily attributed to the volatile situation in the Middle East, was effectively countered by today’s robust performance. This rapid recovery can be attributed to various factors, including a decline in crude oil prices and positive global cues influenced by the Federal Reserve’s accommodative stance. The stability in US bond yields further boosted investor confidence, contributing to today’s gains.

As the Indian market shifts its focus towards the upcoming earnings season, investors are brimming with optimism. The spotlight now firmly rests on corporate performance, as stakeholders eagerly anticipate favorable outcomes in light of these promising developments.

Bank Nifty: Up by 1.08%

In sync with the impressive performance of the NSE Nifty 50, the Bank Nifty demonstrated remarkable strength, opening in positive territory and surging by 1.08 percent to close at 44,360.15. The BSE Sensex, showing its resilience, followed suit with a 0.87 percent climb, reaching a high of 66,079.36.

Examining the sectorial landscape, it’s gratifying to note a widespread surge in green. The realty sector, in particular, stood out with a remarkable gain of 4.01 percent. Leading the pack in this sector was Prestige Estates Projects Ltd. with a substantial increase of 7.82 percent, closely followed by Sobha Ltd. boasting a gain of 6.34 percent, and Godrej Properties Ltd. notching an impressive 5.42 percent increase.

Foreign Institutional Investors/Foreign Portfolio Investors (FIIs/FPIs) maintained a cautious stance, reflecting a net value of -1,005.49 crore rupees (Rs. Cr.) during the specified period. They purchased equities amounting to 8,067.15 crore rupees while divesting equities worth 9,072.64 crore rupees.

Conversely, Domestic Institutional Investors (DIIs) displayed a more optimistic outlook, recording a net value of 1,963.34 crore rupees (Rs. Cr.). They acquired equities worth 8,623.58 crore rupees while selling equities valued at 6,660.24 crore rupees.

Bank Nifty

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

The gainers included Punjab National Bank with a 2.66% increase, Kotak Bank with a 2.43% increase, Bandhan Bank with a 2.17% increase, Federal Bank with a 2.10% increase, and Axis Bank with a 1.51% increase. On the other hand, the biggest losers in the sector included IndusInd Bank with a 0.70% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Indian Rupee Gains Amidst Equity Market Rally Despite Global Headwinds

Despite global uncertainties, the Indian rupee displayed resilience, strengthening by 4 paise to close at 83.24 (pro) against the US dollar on Tuesday. This positive momentum was primarily driven by a robust rally in the domestic equity markets, instilling confidence among investors and reinforcing the rupee’s position.

However, the rupee encountered challenges from elevated crude oil prices in international markets and increased safe-haven demand for the US dollar. Ongoing concerns related to the Middle East conflict introduced an element of caution into the currency markets, contributing to the rupee’s mixed performance.

In the interbank foreign exchange market, the rupee initiated its trading day at 83.23 and traded within a narrow range of 83.22 to 83.26 against the greenback. Ultimately, it settled at 83.24 (pro), marking a modest gain of 4 paise compared to its previous close.

In the global oil market, Brent crude futures, the global oil pricing benchmark, experienced a slight decrease of 0.23 percent, reaching $87.95 per barrel. This nuanced movement in oil prices added further complexity to the dynamics of the currency market.

Buzzing

Coal India Ltd. demonstrated a robust performance with its share price surging by 5.07%, reaching Rs 302.40 from its previous close at Rs 287.80. Notably, a weekly stochastic crossover occurred during the week ending October 6, 2023, signaling a potential bullish trend. However, historical data reveals an average price decline of -5.54% within seven weeks following this signal in the last decade, suggesting a need for cautious optimism. The company’s impressive annual revenue growth of 27.45% outshone its 3-year CAGR of 12.19%, underscoring its growth trajectory. Remarkably, only 1.03% of trading sessions in the past 13 years witnessed intraday gains exceeding 5%.

Conversely, IndusInd Bank Ltd. experienced a slight dip of -0.70% in its share price, closing at Rs 1,418.60, down from Rs 1,428.55. Despite this minor setback, the bank demonstrated strong fundamentals, boasting an annual revenue growth of 16.51%, surpassing its 3-year CAGR of 7.54%. Further, the YoY increase of 21.28% in advances exceeded its 5-year CAGR of 9.24%. On the downside, 3.58% of trading sessions in the past 18 years saw intraday declines exceeding 5%, indicating occasional volatility.

Advance Decline Ratio

Today, the advance-decline ratio was 2.91, and the market breadth was positive. The volatility index India Vix decreased by 1.42 percent to settle at 11.24 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1795
Decliners – 617
52Wk High –  102
52Wk Low – 11
High Band Hitters – 133
Low Band Hitters – 52
200d SMA – 18530
50d SMA – 19603
20d SMA – 19770

Top Gainers and Losers Stocks

The top gainers were Coal India (+5.07%), Adani Ports (+3.54%), Bharti Airtel (+2.54%), Kotak Bank (+2.43%), and Hindalco  (+2.38%).

The top losers were IndusInd Bank (-0.70%), Cipla (-0.50%), TCS (-0.24%), Dr. Reddy (-0.16%), and Titan (-0.05%).

Top Gainers and Losers Sector

The top gainers sector were Realty (+4.01%), Metal (+2.05%), Auto (+1.24%), Financial Services (+1.23%), and Media  (+1.01%).

SECTORS – NOTABLE ACTION
REALTY +4.01%
METAL +2.05%
AUTO +1.24%

Stocks Ban List

(SEBI) F&O ban list (MCX open at -2095.45 and close at +2099.80), (L&TFH open at -131.80 and close at +133.70), (PNB open at -74.05 and close at +75.25), (IBULHSGFIN open at +174.80 and close at +176.30), (MANAPPURAM open at +141.60 and close at +144.60), and (DELTACORP open at +141.80 and close at +142.20) are not currently on 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.

HINDCOPPER, BALRAMCHIN, SAIL, RBLBANK, BHEL, and SUNTV stock has the possibilities of enterance in the ban list.

DELTACORP stock has the possiblities of exit from ban list.

Daily Pivots

As per the above pivots data, 19590 to 19760 is the Nifty 50 trading range.

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