Nifty Hits Record High of 21,800 on Last Expiry of 2023

At the close, the Nifty 50 was at 21,778.70 up by 0.57%

The NSE Nifty 50 exhibited robust performance today, initiating at a high and concluding with a commendable 0.57 percent increase, closing on a positive note. Marking a notable stride above 21750, the bullish trend persisted throughout the day, culminating in fresh record highs on December 28. Investor enthusiasm was palpable as benchmark indices sustained upward momentum for the fifth consecutive session, propelled by a favorable global market outlook and widespread sectoral investments.

On the final calendar year’s expiry, the market showcased bullish momentum, emphasizing a continued risk-on sentiment bolstered by promising local macroeconomic prospects anticipated for the upcoming year. Assuaging concerns around elevated inflation and expectations of early rate cuts in the world’s largest economy, India’s growth trajectory appears poised for sustained momentum, igniting increased investor confidence.

The market’s buoyancy remained buoyant, largely influenced by the amelioration of the regional instability and a reversal in FII inflows. Additionally, a dip in crude oil prices below $80 stimulated substantial buying activities among oil and energy companies. While global markets underwent consolidation due to valuation apprehensions, Asian markets surged with expectations of more aggressive rate cuts by the Fed in the forthcoming year.

Despite the optimism, overbought technical indicators suggest a potential short-term consolidation of key indices. However, the medium-term outlook leans favorably toward bullish trends, contingent upon significant corrective declines.

The year-end rally not only signifies the market’s resilience but also sets a positive tone for 2024, driven by evolving global dynamics and promising domestic prospects.

Bank Nifty: Up by 0.47%

The Bank Nifty and BSE Sensex showcased an impressive performance today, with the Bank Nifty opening positively and closing at 48,508.55, reflecting a 0.47% increase. Correspondingly, the BSE Sensex surged by 0.52%, hitting a high of 72,410.38 and concluding on a positive note. The Bank Nifty’s upward movement, surpassing its recent consolidation, indicates a significant upswing in market optimism.

A sustained position above the critical short-term moving average consolidates the Bank Nifty’s positive trend, reinforcing market participants’ confidence in the ongoing upward trajectory. Short-term projections maintain an optimistic outlook, signaling a bullish sentiment as long as the Bank Nifty remains above the 48,500 mark.

In the sectorial landscape, the Oil & Gas sector exhibited remarkable growth, marking a notable 2.01% increase in recent market movements. Hindustan Petroleum Corporation Ltd. demonstrated an impressive surge of 9.18%, closely followed by Indian Oil Corporation Ltd. with a commendable gain of 5.06%. However, the IT sector experienced a marginal decline of 0.14%, with LTImindtree Ltd. and Wipro Ltd. incurring losses of -0.53% and -0.41%, respectively, contributing to the sector’s overall dip.

The Foreign Institutional Investors (FIIs/FPIs) exhibited a strong position in the market, indicating a substantial buy value of Rs. 13,489.78 crore, while their sale value stood at Rs. 9,130.79 crore, resulting in a net value of Rs. 4,358.99 crore. This significant positive net value reflects their active participation and bullish stance within the market, contributing to its overall buoyancy.

On the other hand, Domestic Institutional Investors (DIIs) portrayed a marginal yet favorable activity. Their buy value amounted to Rs. 18,258.20 crore, with a sale value of Rs. 18,121.56 crore, resulting in a net value of Rs. 136.64 crore.

Bank Nifty

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

The gainers included Punjab National Bank with a 3.87% increase, AU Bank with a 1.99% increase, Kotak Bank with a 0.93% increase, IndusInd Bank with a 0.76% increase, and Federal Bank with a 0.75% increase. On the other hand, the biggest losers in the sector included IDFC First Bank with a 0.51% decline, and Axis Bank with a 0.08% decline. These results suggest that most of the banking stocks performed better for the day.

Indian Rupee Strengthens Against US Dollar Amidst Market Dynamics

The Indian rupee showcased resilience, bouncing back after consecutive declines to settle 17 paise higher at 83.17 (pro) against the US dollar on Thursday. This rise was attributed to a weakened American currency in international markets and a robust performance in the domestic equity markets.

Factors such as the influx of foreign funds and a downward trajectory in crude oil prices contributed significantly to supporting the Indian currency. At the interbank foreign exchange, the rupee opened at 83.33, maintaining a trading range of 83.16-83.34 against the greenback before concluding at 83.17 (pro), marking a notable gain of 17 paise from its previous close.

The recent dip of 18 paise over the past two sessions had set a different tone, with Wednesday witnessing the rupee settling 15 paise lower at 83.34 against the dollar. However, a shift occurred due to the weakened US dollar and the upsurge in domestic markets, leading to the rupee’s appreciation.

The decline in the US dollar is attributed to mounting expectations of potential rate cuts by the US Federal Reserve. This sentiment reflected in the dollar index, which measures the dollar’s strength against a basket of six currencies, dropping by 0.28% to 100.37 on Thursday.

Moreover, the global benchmark for oil prices, Brent crude, experienced a 0.64% decrease, reaching USD 79.14 per barrel. This decline further supported the rupee’s upward movement against the US dollar.

The rupee’s recent fluctuations underscore the influence of global market dynamics, emphasizing the currency’s responsiveness to international trends such as the dollar’s performance and oil price variations. Investors and traders remain attentive to these fluctuations as they assess the currency’s movements in an ever-evolving market landscape.

Stocks Highlights

Coal India Ltd. Shows Resilience Amidst Positive Indicators

Coal India Ltd. exhibited a notable uptick of 4.21%, reaching Rs 381.00 from its previous close at Rs 365.60. Analyzing intraday trends over the past 13 years, a mere 0.49% of trading sessions experienced intraday declines exceeding 5%. The company’s financial strength shines through its remarkable annual revenue growth, standing at 27.45% compared to a 12.19% 3-year CAGR. The recent appearance of a Daily MACD crossover on December 26, 2023, historically resulted in an average price gain of 3.74% within 10 days.

Adani Enterprises Ltd. Encounters Minor Decline with Indicators Favoring Caution

Adani Enterprises Ltd. observed a slight downturn of -0.93%, settling at 2,816.90 from its previous close of Rs 2,843.35. Examining intraday patterns across 19 years, approximately 3.94% of trading sessions experienced declines surpassing 5%. Despite the company’s impressive annual revenue growth of 96.18%, surpassing a 45.79% 3-year CAGR, caution is warranted due to recent indicators.

A sell signal emerged with a bearish trend indicated by a 5-day moving crossover, historically leading to an average price decline of -3.01% within 7 days over the past 5 years. Additionally, noteworthy expenditure allocations include 2.9% towards interest expenses and 1.37% towards employee costs in the year ending March 31, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 0.86, and the market breadth was negative. The volatility index India Vix decreased by 2.68 percent to settle at 15.14 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1143
Decliners – 1334
52Wk High –  196
52Wk Low – 10
High Band Hitters – 102
Low Band Hitters – 48
200d SMA – 19122
50d SMA – 20131
20d SMA – 21086

Top Gainers and Losers Stocks

The top gainers were Coal India (+4.21%), NTPC (+3.07%), M&M (+2.79%), Hero MotoCorp (+2.60%), and BPCL (+2.51%).

The top losers were Adani Enterprises (-0.93%), Larsen & Toubro (-0.59%), Eicher Motors (-0.59%), LTIM (-0.53%), and Adani Ports (-0.43%).

Top Gainers and Losers Sector

The top gainers sector were Oil & Gas (+2.01%), FMCG (+1.35%), Pharma (+1.23%), Auto (+1.01%), and Metal (+1.00%).

The top losers sector were IT (-0.14%), and Consumer Durables (-0.03%).

SECTORS – NOTABLE ACTION
OIL & GAS +2.01%
FMCG +1.35%
PHARMA +1.23%
IT -0.14%
CONSUMER DURABLES -0.03%

Stocks Ban List

(SEBI) F&O ban list (RBLBANK open at +264.50 and close at +268.90), and (NATIONALUM open at +119.55 and close at +128.60) 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.

SAIL, PEL, INDIACEM, GMRINFRA, ABCAPITAL, IDEA, ZEEL, IEX, and CHAMBLFERT stocks has the possibilities of entrance in the ban list.

NATIONALUM, stock has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 21650 to 21950 is the Nifty 50 trading range.

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