Diwali Festivities and Mutual Fund Investments Boost Market Sentiment

At the close, the Nifty 50 was at 19,425.35 up by 0.15%

In a challenging trading session, the NSE Nifty 50 demonstrated remarkable resilience. It began on a subdued note but managed to close in the green, marking a 0.15% increase and surpassing the 19,400 mark. The benchmark indices faced periods of decline, but the market exhibited a strong rebound, largely driven by robust buying interest in banking, financial, and oil & gas stocks.

A noteworthy aspect was the outperformance of broader market indices compared to their headline counterparts. This outperformance was influenced by optimism regarding a potential reduction in retail inflation, alleviating concerns among investors. The festive atmosphere of Diwali and consistent inflows from mutual funds further bolstered market sentiment.

Amidst selling pressure affecting Asian and European markets, selective buying played a pivotal role in guiding Indian markets toward a marginal gain. Concerns persisted regarding foreign fund outflows, especially as volatile US treasury yields prompted overseas investors to retreat from emerging markets.

In terms of technical analysis, a small positive candle on the daily chart signaled the possibility of an upside bounce within the confines of a range-bound movement. Additionally, rotational buying across heavyweight stocks contributed to the index’s resilience during a phase of consolidation.

As the Indian market remains steadfast amid global uncertainties, including rising bond yields and inflation concerns, it underscores the nation’s confidence in effectively managing October’s inflation levels and anticipates a positive revision in Q1FY24 GDP growth.

Bank Nifty: Up by 0.31%

In the financial markets, the Bank Nifty embarked on a challenging journey as it initially began on a downward trend but showcased resilience, ultimately closing with a 0.31% increase, reaching 43,820.10 by the end of the trading day. A similar story unfolded with the BSE Sensex, which started with a modest 0.11% increase and concluded positively, achieving an impressive high of 64,904.68. This upward trajectory signaled a bullish sentiment in the market.

Furthermore, sectorial trends unveiled a promising scenario for the metal sector, which witnessed a substantial gain of 0.70%. Vedanta Ltd. emerged as a standout performer in this sector, with an impressive gain of 4.17%, closely trailed by NMDC Ltd., which registered a remarkable 3.56% increase in their stock values.

In contrast, the media sector grappled with challenges, with a decline of 1.23%. Notably, Zee Entertainment Enterprises Ltd. faced a significant loss, plummeting by -5.14%, while Sun TV Network Ltd. also saw a decline of -1.36%. These fluctuations reflect the diverse dynamics within the market, as different sectors respond to distinct influences and factors, making it essential for investors to remain vigilant and adaptable in their investment strategies.

Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) recorded a buy value of Rs. 6,583.57 crore and a sale value of Rs. 6,845.38 crore, resulting in a net value deficit of Rs. -261.81 crore. Conversely, the Domestic Institutional Investors (DII) witnessed a buy value of Rs. 6,239.42 crore and a sale value of Rs. 5,416.78 crore, resulting in a positive net value of Rs. 822.64 crore. This data depicts contrasting market behaviors, with FIIs/FPIs experiencing a net selling scenario while DIIs exhibited a net buying trend during the specified period.

Bank Nifty

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

The gainers included Federal Bank with a 1.49% increase, AU Bank with a 1.37% increase, Bank of Baroda with a 1.06% increase, IDFC First Bank with a 1.00% increase, and Axis Bank with a 0.77% increase. On the other hand, the biggest losers in the sector included IndusInd Bank with a 0.50% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Rupee Hits Lifetime Low at 83.33 Against the Dollar due to Oil Prices and Capital Outflows

The rupee faced a challenging week, marking a record low of 83.33 against the US dollar, influenced by rising crude oil prices and significant foreign capital outflows. This decline was notably impacted by an upward movement in crude oil rates, prompting concerns about India’s import bill and foreign exchange reserves.

Investors, closely monitoring industrial output and inflation data, witnessed the rupee’s journey from opening at 83.28 and hitting an intra-day low of 83.49 at the interbank foreign exchange. Eventually, it settled at the unprecedented 83.33, marking a 4 paise drop from the previous close and reaching its lowest level since September 18.

Amid a weaker American currency and positive signals from equity markets, the dollar index exhibited a marginal decline at 105.89 against a basket of currencies. Simultaneously, Brent crude futures, the global oil benchmark, surged by 0.81% to $80.66 per barrel, further impacting market sentiments and the rupee’s trajectory against the dollar.

The rupee’s performance underscores the influence of global dynamics, particularly oil prices and foreign capital movements, urging a cautious approach in financial strategies amidst these fluctuations.

Buzzing

NTPC Ltd. witnessed a positive uptick in its share price, climbing by 1.91% from the previous close of Rs 237.95 to reach Rs 242.50. The company displayed an impressive annual revenue growth of 31.84%, surpassing its 3-year Compound Annual Growth Rate (CAGR) of 16.39%. Notably, only 1.21% of trading sessions in the last 19 years saw intraday gains higher than 5%. Moreover, the company allocated 6.33% of its operating revenues to interest expenses and 3.7% towards employee costs by the year ending on March 31, 2023.

Conversely, Hero MotoCorp Ltd. experienced a decline in its share price, dropping by 2.08% from the previous close of Rs 3,173.90 to settle at Rs 3,108.00. While the company showcased annual revenue growth of 15.35%, surpassing its 3-year CAGR of 4.97%, only 1.39% of trading sessions in the last 19 years witnessed intraday gains higher than 5%. Hero MotoCorp allocated less than 1% of its operating revenues to interest expenses but allocated a significant 6.59% towards employee costs by the year ending March 31, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 1.10, and the market breadth was positive. The volatility index India Vix increased by 1.13 percent to settle at 11.11 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1263
Decliners – 1150
52Wk High –  106
52Wk Low – 16
High Band Hitters – 98
Low Band Hitters – 71
200d SMA – 18678
50d SMA – 19568
20d SMA – 19355

Top Gainers and Losers Stocks

The top gainers were NTPC (+1.91%), ONGC (+1.66%), Tata Consumer (+1.27%), Tech Mahindra (+1.25%), and UltraTech Cement (+1.08%).

The top losers were Hero MotoCorp (-2.08%), M&M (-1.84%), HCL Technologies (-0.91%), Titan (-0.72%), and Hindalco (-0.71%).

Top Gainers and Losers Sector

The top gainers sector were Metal (+0.70%), Oil & Gas (+0.60%), Financial Services (+0.41%), Realty (+0.23%), FMCG (+0.18%).

The top losers sectors were Media (-1.23%), Auto (-0.42%), IT (-0.26%), and Consumer Durables (-0.16%).

SECTORS – NOTABLE ACTION
METAL +0.70%
OIL & GAS +0.60%
FINANCIAL SERVICES +0.41%
MEDIA -1.23%
AUTO -0.42%
IT -0.26%

Stocks Ban List

(SEBI) F&O ban list (CHAMBLFERT open at +306.80 and close at +307.80), (MCX open at -2452.00 and close at +2603.90), (DELTACORP open at -138.70 and close at +140.10), and (GNFC open at +684.00 and close at -675.55) 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.

MANAPPURAM, INDIACEM, IBULHSGFIN, BALRAMCHIN, and ZEEL stocks has the possibilities of enterance in the ban list.

GNFC stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 19330 to 19490 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Faces Resistance at 19,500 Amid Global Uncertainties
Market Stays Rangebound Despite Mixed Global Trends
Indian Stock Market Ends Slightly Lower in Volatile Session

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