Nifty 50 & Bank Nifty rising on thin volumes – Smart money exiting the markets?

At the close, the Nifty 50 was at 21,654.75 up by 1.00%

The NSE Nifty 50 commenced trading at elevated levels, displaying a notable 1.00% surge and ultimately closing in the green zone. The index reached a significant milestone, surpassing the 21,650 mark, marking the fourth consecutive session with an upward trajectory. Positive global cues and widespread buying across sectors, excluding power and oil & gas, propelled the Indian benchmark indices to conclude the day with Nifty settling at 21,650.

Buoyed by favorable global cues, the market initiated on a positive note and sustained gains throughout the day, with the Nifty breaching the 21,600 mark. While a mid-session saw some profit booking, last-hour buying bolstered indices, culminating near the day’s peak. The continuation of positive momentum on the second trading session witnessed a firm start for Nifty50. However, a minor correction emerged in the mid-session attributed to bearish divergence in the Relative Strength Index (RSI).

The optimistic domestic market’s ascent to a new record high effectively rebounded from last week’s losses. This upward trajectory predominantly stemmed from the Santa Claus rally, fueled by anticipations of early rate cuts by the US Federal Reserve and a global inflation cooling trend. Additionally, news regarding major shipping companies resuming operations through the Red Sea amid ongoing tensions further buoyed domestic sentiment.

This resilient performance of the NSE Nifty 50, fueled by global optimism and buoyant domestic factors, underscores the market’s resilience and investor confidence. The anticipation of favorable economic measures and improved global scenarios continues to drive positive sentiments, contributing to the market’s robust trajectory and highlighting potential opportunities for investors.

Bank Nifty: Up by 1.17%

The Bank Nifty initiated the trading day with a robust opening, soaring by 1.17% and concluding at an impressive 48,282.20 by day’s end. Similarly, the BSE Sensex mirrored this bullish trend, notching a notable 0.98% surge, culminating at an impressive high of 72,038.43.

Bank Nifty’s recent performance on the daily chart unveils a breakout from a consolidation phase. This breakout is substantiated by its consistent positioning above a pivotal moving average, signaling a sustained upward trajectory. Moreover, a bullish crossover on the Relative Strength Index (RSI) in the daily chart underscores positive market sentiment and reinforces the Bank Nifty’s current trend.

In the sectorial landscape, the Automotive sector emerges as a strong performer, boasting a noteworthy 1.51% rise. Notably, Sona BLW Precision Forgings Ltd. emerges as a standout, registering a remarkable gain of 6.43%, followed by Bajaj Auto Ltd. with a substantial 3.86% surge. Conversely, the Oil & Gas sector faced a downturn, declining by 0.29%. Castrol India Ltd. witnessed a notable decrease of -2.79%, while Aegis Logistics Ltd. experienced a more moderate loss of -1.42%.

The Foreign Institutional Investors (FIIs/FPIs) exhibited a positive trend in their investment activities, with a buy value of Rs. 10,654.11 crore and a sale value of Rs. 7,728.06 crore, resulting in a net value of Rs. 2,926.05 crore. Conversely, Domestic Institutional Investors (DIIs) experienced a divergence in their activities, with a buy value of Rs. 9,136.75 crore and a sale value of Rs. 9,328.76 crore, leading to a net value of -Rs. 192.01 crore.

Bank Nifty

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

The gainers included Punjab National Bank with a 4.01% increase, Bank of Baroda with a 3.04% increase, State Bank of India with a 1.66% increase, IndusInd Bank with a 1.54% increase, and Bandhan Bank with a 1.19% increase. These results suggest that most of the banking stocks performed better for the day.

Rupee Declines Slightly Against Dollar Amidst Foreign Fund Outflows

The Indian rupee saw a marginal dip of 4 paise against the US dollar, reaching 83.23 in early Wednesday trade. This shift was influenced by continuous foreign fund outflows and the US dollar’s strengthened position against other global currencies.

Despite a positive performance in the domestic equity market, investor sentiment remained tempered due to apprehensions regarding the volatile crude oil prices. There are concerns about potential disruptions in global trade routes, particularly through the Red Sea.

Initiating at 83.21, the rupee further weakened to 83.23 against the dollar in the interbank foreign exchange, indicating a slight decline from its previous close at 83.19 on Tuesday. Simultaneously, the dollar index, a measure of the dollar’s strength against major currencies, showed a 0.07% increase, standing at 101.17 on Wednesday.

In the realm of oil markets, the global benchmark Brent crude experienced a minor decrease of 0.10%, settling at $80.99 per barrel. These fluctuations in oil prices add to the ongoing economic considerations, influencing currency movements and global market sentiments.

The rupee’s subtle shift against the dollar mirrors the impact of external factors like foreign fund flows and the dollar’s global performance. While the domestic market displayed resilience, the concerns surrounding oil prices hint at ongoing caution among investors navigating international trade complexities.

Stocks Highlights

UltraTech Cement Ltd. observed a noteworthy surge in its share price, marking a 4.50% increase from its previous closing value of Rs 10,018.65 to Rs 10,469.95. The company has demonstrated a robust annual revenue growth rate of 20.03%, surpassing its three-year compound annual growth rate (CAGR) of 13.8%. An intriguing observation is that over the last 19 years, merely 1.61% of trading sessions recorded intraday gains exceeding 5%. Regarding expenses, UltraTech Cement allocated 1.3% of its operating revenues towards interest costs and 4.33% towards employee expenditures in the fiscal year ending on March 31, 2023.

Conversely, Oil And Natural Gas Corporation Ltd. witnessed a slight decline in its share price by -0.94% from the earlier value of Rs 207.35 to Rs 205.40. Despite this dip, the company boasts an impressive annual revenue growth rate of 28.41%, surpassing its 3-year CAGR of 16.24%. Similar to UltraTech Cement, a mere 1.36% of trading sessions over the past 19 years exhibited intraday gains surpassing 5%. In terms of expenses, Oil And Natural Gas Corporation allocated 1.25% of its operating revenues for interest expenses and 2.36% for employee costs in the fiscal year ending on March 31, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 1.11, and the market breadth was positive. The volatility index India Vix increased by 5.99 percent to settle at 15.56 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1298
Decliners – 1170
52Wk High –  187
52Wk Low – 13
High Band Hitters – 138
Low Band Hitters – 46
200d SMA – 19101
50d SMA – 20091
20d SMA – 21002

Top Gainers and Losers Stocks

The top gainers were UltraTech Cement (+4.50%), Hindalco (+4.25%), Bajaj Auto (+3.86%), JSW Steel (+3.03%), and Tata Motors (+2.88%).

The top losers were ONGC (-0.94%), NTPC (-0.90%), Adani Enterprises (-0.68%), Britannia (-0.65%), and UPL (-0.63%).

Top Gainers and Losers Sector

The top gainers sector were Auto (+1.51%), Metal (+1.39%), Financial Services (+0.96%), IT (+0.70%), and Realty (+0.68%).

The top losers sector were Oil & Gas (-0.29%).

SECTORS – NOTABLE ACTION
AUTO +1.51%
METAL +1.39%
FINANCIAL SERVICES +0.96%
OIL & GAS -0.29%

Stocks Ban List

(SEBI) F&O ban list (RBLBANK open at -263.15 and close at +262.75), (NATIONALUM open at -116.05 and close at +117.85), (BALRAMCHIN open at -390.50 and close at +396.25), (DELTACORP open at +146.50 and close at +147.25), and (HINDCOPPER open at +234.50 and close at +235.25) 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.

PEL, GMRINFRA, CHAMBLFERT, ABCAPITAL, IRCTC, TATACHEM, PVRINOX, ZEEL, BHEL, INDUSTOWER, and IEX stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 21500 to 21900 is the Nifty 50 trading range.

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