Last-Minute Purchase by Institutional Investors Boosts Nifty Beyond 19,900

At the close, the Nifty 50 was at 19,889.70 up by 0.48%

The NSE Nifty 50 demonstrated resilience by initiating the session positively, marking a 0.48% escalation and ultimately closing above the 19,850 mark. Despite preceding days with marginal negative closures and ongoing market volatility, the Indian benchmark indices ended strongly, reflecting market strength.

The market commenced with modest gains amidst mixed global cues, encountering fluctuations leading to initial range-bound movements. However, a surge in final-hour buying bolstered the indices to near day’s peak levels. The Nifty’s flat opening gradually ascended, settling near the day’s highs, a testament to robust market sentiment.

Although the week began with promising momentum, the market remained range-bound for most of the time, experiencing an abrupt surge in the final session. The Nifty’s closure at 19,889.70 marked a 95-point gain. Notably, Midcaps outperformed the Frontline Index, while Smallcaps lagged, portraying a mixed trend in the broader markets.

Concurrently, oil stocks exhibited an upward trajectory amidst the recent decline in global crude oil prices. Despite a 16% dip in oil prices over the last two months from the peak of nearly $100 a barrel in September, a reversal in the downward trend was observed. This rebound preceded a crucial OPEC+ meeting, where expectations hovered around potential deepening and extension of oil production cuts. These discussions arose due to concerns about consistently high supply versus demand levels.

The NSE Nifty 50’s resilience amidst market fluctuations and the trajectory of oil stocks in response to global dynamics underscore the significance of monitoring global economic factors. Investors need to track geopolitical events and key meetings, as they significantly influence market movements and investment strategies.

Bank Nifty: Up by 0.26%

The Bank Nifty and BSE Sensex commenced positively, with the Bank Nifty rising by 0.26% to close at 43,880.95 and the BSE Sensex experiencing a 0.31% increase, reaching 66,174.20. This upward trend signals sustained positive momentum, particularly evident in the Bank Nifty from the previous week, reflecting resilience and investor confidence in the banking sector.

The continued positivity in the Bank Nifty emphasizes favorable market conditions, indicating the sector’s potential for growth and stability. Meanwhile, the Oil & Gas sector exhibited significant growth, surging by 2.28%. Adani Total Gas Ltd. led with an impressive surge of 19.99%, followed by Hindustan Petroleum Corporation Ltd. rising by 6.26%. However, the Pharma sector showcased a contrasting picture, experiencing a decline of 0.34%. Granules India Ltd. faced a notable downturn of -2.38%, while Glenmark Pharmaceuticals Ltd. observed a decrease of -2.07%.

Foreign Institutional Investors (FII/FPI) engaged in robust trading activities, with a buy value of Rs. 14,474.29 crore and a sale value of Rs. 13,690.47 crore, resulting in a net value of Rs. 783.82 crore. Simultaneously, Domestic Institutional Investors (DII) significantly participated, recording a buy value of Rs. 8,088.70 crore and a sale value of Rs. 6,763.72 crore, leading to a net value of Rs. 1,324.98 crore.

Bank Nifty

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

The gainers included Punjab National Bank with a 3.42% increase, Bandhan Bank with a 2.31% increase, AU Bank with a 2.15% increase, Bank of Baroda with a 1.84% increase, and Federal Bank with a 1.63% increase. On the other hand, the biggest losers in the sector included Kotak Bank with a 0.17% decline, and HDFC Bank with a 0.08% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Indian Rupee Gains Traction Against Dollar Amidst Market Sentiment Shifts

The Indian rupee showcased resilience on Tuesday, marking a notable rebound from record lows, closing at 83.34 (pro) against the US dollar. This upturn was fueled by positive sentiments prevailing in the equity markets alongside an influx of foreign funds. The currency’s 6 paise gain from its previous close reflects a burgeoning confidence amidst market shifts.

A weakened American currency against major global counterparts coupled with crude prices hovering near the $80 per barrel mark further bolstered the Indian rupee. Within the interbank foreign exchange market, the rupee oscillated between 83.32 to 83.39 against the dollar, starting at 83.37 for the day before settling at 83.34 (pro).

This positive trend in the rupee’s value was spurred by the retreat of the greenback against leading currencies following lackluster US economic data at the start of the week. However, the gains were curbed due to month-end dollar demands, tempering the rupee’s ascent.

Meanwhile, Brent crude futures, the global oil benchmark, surged by 1.18% to $80.92 per barrel, exerting additional support for the Indian currency. The concurrent rise in oil prices might further influence the rupee’s trajectory, signaling a need for cautious monitoring amidst global economic dynamics.

Buzzing

Adani Ports & Special Economic Zone Ltd. experienced a notable 5.65% increase in its share price, reaching Rs 840.50 from its previous close of Rs 795.55. The company’s financial metrics demonstrate a Price-to-Earnings (PE) ratio of 28.56, indicating the market’s assessment of its earnings. Additionally, an Earnings Per Share (EPS) of Rs. 29.34 suggests the company’s profitability per outstanding share. With a substantial Market Capitalization of Rs. 1,80,954 crore, the firm holds a leading position in its sector by market cap. The Price-to-Book (PB) ratio stands at 3.89, reflecting the market’s valuation concerning the company’s book value. Despite a Face Value of Rs. 2.00 and a Beta of 1.46, suggesting the stock’s volatility concerning the broader market, the Volume-Weighted Average Price (VWAP) remains at Rs. 836.47, portraying the average price at which the stock has traded.

In contrast, Cipla Ltd. observed a slight decline of -0.60% in its share price, reaching Rs 1,191.50 from the previous close of Rs 1,198.65. The company’s PE ratio stands at 27.91, depicting the market’s valuation concerning its earnings, while an EPS of Rs. 42.72 highlights its profitability per outstanding share. Cipla holds a significant position with a Market Capitalization of Rs. 96,257.41 crore, ranked third in its sector by market cap. The PB ratio at 4.21 showcases the market’s valuation concerning the company’s book value. Despite a Face Value of Rs. 2.00 and a Beta of -0.43, indicating its volatility relative to the broader market, the Volume-Weighted Average Price (VWAP) hovers at Rs. 1,195.31, representing the average traded price.

Cipla’s price performance has varied across different timeframes, showing a marginal decline over a day (-0.52%) and a week (-4.86%), while displaying a slight uptick over a month (1.54%). Over three months, the return reflects a decrease of -2.98%, depicting fluctuations in its performance during this period.

Advance Decline Ratio

Today, the advance-decline ratio was 1.00, and the market breadth was positive. The volatility index India Vix increased by 7.45 percent to settle at 12.18 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1241
Decliners – 1236
52Wk High –  165
52Wk Low – 12
High Band Hitters – 132
Low Band Hitters – 58
200d SMA – 18773
50d SMA – 19590
20d SMA – 19502

Top Gainers and Losers Stocks

The top gainers were Adani Enterprises (+9.19%), Adani Ports (+5.65%), Tata Motors (+3.61%), BPCL (+2.97%), and Coal India (+2.79%).

The top losers were Cipla (-0.60%), Apollo Hospitals (-0.58%), Hindustan Unilever (-0.50%), Sun Pharmaceutical (-0.45%), and ITC (-0.43%).

Top Gainers and Losers Sector

The top gainers sector were Oil & Gas (+2.28%), Metal (+1.85%), Auto (+0.95%), Realty (+0.57%), and Financial Services (+0.26%).

The top losers sector were Pharma (-0.34%), and FMCG (-0.17%).

SECTORS – NOTABLE ACTION
OIL & GAS +2.28%
METAL +1.85%
AUTO +0.95%
PHARMA -0.34%
FMCG -0.17%

Stocks Ban List

(SEBI) F&O ban list (BHEL open at +152.50 and close at +156.05), (GRANULES open at +388.50 and close at -377.95), (BALRAMCHIN open at -463.10 and close at +468.25), (IBULHSGFIN open at -184.00 and close at +187.85), (HINDPETRO open at +329.05 and close at +342.75), (HINDCOPPER open at +165.35 and close at +168.70), and (ZEEL open at +253.65 and close at +255.80) 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.

NMDC, PEL, SAIL, PNB, CHAMBLFERT, IEX, GNFC, BIOCON, and NATIONALUM stocks has the possibilities of enterance in the ban list.

HINDPETRO, HINDCOPPER, and ZEEL stocks has the possibilities of exit from ban list.

Daily Pivots

As per the above pivots data, 19800 to 19950 is the Nifty 50 trading range.

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