Market Defies Weak Global Cues, Nifty Inches Closer to 21,700

At the close, the Nifty 50 was at 21,658.60 up by 0.66%

Amidst global uncertainties, the NSE Nifty 50 demonstrated robustness, initiating the trading day on a positive note and maintaining a steady upward trajectory. With a commendable 0.66% rise, the index closed above 21,650, marking a significant rebound after consecutive days of decline.

The day’s bullish momentum stemmed from widespread buying across sectors, propelling the Nifty beyond the 21,600 milestone. This resurgence, following recent corrections, underscores the prevailing dominance of bullish sentiments in the market.

The Nifty’s gap-up opening and sustained positive bias throughout trading hours highlighted a market driven by bullish momentum. Despite weak global cues, the index showcased resilience, closing near the day’s high at 21,700, indicating a swift recovery and reinforcing investor confidence.

Key contributors to this uptrend included strong updates from leading banks, particularly reflecting robust credit growth, bolstering market confidence after a period of negativity. Furthermore, the Realty sector emerged as the top gainer, buoyed by optimistic expectations in the residential segment due to encouraging housing loan disbursement data from banks.

Amid profit-booking in Asian markets, prompted by indications of a temporary hold on rates from the Fed, the Indian market exhibited resilience. Investors remain watchful of the US Fed’s rate trajectory following recent minutes hinting at an extended period of higher rates, emphasizing the significance of domestic factors and investor optimism in driving market behavior.

Bank Nifty: Up by 1.03%

In a robust display of strength, the Bank Nifty surged impressively, commencing the day on a positive note and registering a substantial 1.03% uptick, closing at 48,195.85, reinforcing the market’s bullish trajectory. Simultaneously, the BSE Sensex also demonstrated a notable 0.69% rise, culminating at 71,847.57, ending the day positively.

The Bank Nifty’s remarkable ascent above 48,000 underscored bullish market forces, marking a pivotal milestone in today’s session and hinting at a potential upward trend aiming for the 50,000 milestone. Notably, the Real Estate sector saw significant growth, with a collective surge of 6.76%, with Sobha Ltd. leading with a remarkable gain of 15.82%, followed by Macrotech Developers Ltd. at 9.55%, and Godrej Properties Ltd. with a commendable 7.81% rise.

Foreign Institutional Investors (FII/FPI) reflected a net positive investment value of Rs. 1,513.41 Crores, showcasing higher buy value at Rs. 14,864.83 Crores against sales at Rs. 13,351.42 Crores. Conversely, Domestic Institutional Investors (DII) reported a net divestment of -Rs. 1,387.36 Crores, with sales surpassing investments, standing at Rs. 13,399.35 Crores against Rs. 12,011.99 Crores in buys.

Bank Nifty

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

The gainers included AU Bank with a 3.98% increase, IndusInd Bank with a 2.79% increase, Bandhan Bank with a 2.66% increase, Axis Bank with a 2.40% increase, and Bank of Baroda with a 2.23% increase. On the other hand, the biggest losers in the sector included Kotak Bank with a 0.05% decline. These results suggest that most of the banking stocks performed better for the day.

Rupee Ends Higher at 83.23 Against Dollar Amid Market Fluctuations

The Indian rupee showcased a positive performance on Thursday, strengthening by 7 paise to settle at 83.23 against the US dollar, supported by robust domestic equities and the dollar’s weakness in the global market.

Opening almost unchanged at 83.30 against the greenback in the interbank foreign exchange market, the rupee navigated between an intraday low of 83.32 and a high of 83.21 before concluding at 83.23, marking a 7-paise gain from the previous close.

This ascent for the rupee over two consecutive days was attributed to the dollar’s subdued stance post the Federal Open Market Committee (FOMC) meeting minutes, which delivered mixed signals.

The rupee initially accrued gains in sync with Asian currencies after a strong performance by the euro against the dollar, fueled by upbeat Eurozone data and a better-than-expected service PMI number. However, the afternoon saw a slight retraction due to heightened crude oil prices and increased dollar demand from importers, tempering the rupee’s earlier advancements.

Despite the rupee’s upward trend, escalating crude oil prices acted as a limiting factor, capping the local unit’s sharp gains. Brent crude futures, a global benchmark, surged by 1.05% to reach $79.07 per barrel, exerting pressure on the rupee’s upward momentum.

Simultaneously, the dollar index, gauging the greenback’s strength against major currencies, experienced a 0.32% decline, trading lower at 102.16, contributing to the rupee’s positive stance amidst market fluctuations.

Stocks Highlights

Bajaj Finance’s share price surged by 4.25%, closing at Rs 7,698.60 from its previous value of Rs 7,384.80. A notable observation reveals that over the last 19 years, only a minimal 3.29% of trading sessions witnessed intraday declines higher than 5%, affirming the stock’s stability. The company showcased impressive revenue growth, with an annual rate of 30.86%, outperforming its 3-year compound annual growth rate (CAGR) of 16.03%. The appearance of a daily Moving Average Convergence Divergence (MACD) crossover signals a bullish advantage, historically resulting in an average gain of 4.11% within 10 days. Notably, the company allocated 30.34% of its operating revenues to interest expenses and 12.22% to employee costs in the fiscal year ending March 31, 2023.

Conversely, Dr. Reddy’s Laboratories witnessed a -1.68% decline in its share price, closing at Rs 5,832.45 compared to the previous value of Rs 5,931.90. A mere 1.08% of trading sessions in the past 19 years recorded intraday gains higher than 5%, illustrating the stock’s steadiness in volatile markets. The company demonstrated a robust Return on Equity (ROE) of 19.35% in the fiscal year ending March 31, 2023, surpassing its 5-year average of 14.06%. Additionally, its annual revenue growth of 16.78% outperformed the 3-year CAGR of 12.22%. Dr. Reddy’s allocated less than 1% of its operating revenues to interest expenses and 18.84% to employee costs in the fiscal year ending March 31, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 1.78, and the market breadth was positive. The volatility index India Vix decreased by 5.44 percent to settle at 13.33 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1608
Decliners – 902
52Wk High –  255
52Wk Low – 4
High Band Hitters – 177
Low Band Hitters – 21
200d SMA – 19226
50d SMA – 20330
20d SMA – 21358

Top Gainers and Losers Stocks

The top gainers were Bajaj Finance (+4.25%), Tata Consumer (+3.57%), NTPC (+3.53%), ONGC (+3.00%), and IndusInd Bank (+2.79%).

The top losers were Dr. Reddy (-1.68%), BPCL (-1.55%), LTIM (-1.41%), HCL Technologies (-1.20%), and Hero MotoCorp (-1.12%).

Top Gainers and Losers Sector

The top gainers sector were Realty (+6.76%), Financial Services (+1.22%), FMCG (+0.86%), Consumer Durables (+0.60%), and Oil & Gas (+0.58%).

SECTORS – NOTABLE ACTION
REALTY +6.76%
FINANCIAL SERVICES +1.22%
FMCG +0.86%

Stocks Ban List

(SEBI) F&O ban list (DELTACORP open at -155.70 and close at +156.00), (NATIONALUM open at -131.00 and close at +130.50), (SAIL open at -119.25 and close at -118.65), (IEX open at +166.00 and close at +165.95), (ZEEL open at -286.40 and close at +290.60), (BALRAMCHIN open at +408.50 and close at +407.30), and (HINDCOPPER open at -267.55 and close at +278.05) 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.

BHEL, PEL, CHAMBLFERT, INDUSTOWER, GNFC, INDIACEM, and ESCORTS stocks has the possibilities of entrance in the ban list.

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

Daily Pivots

As per the above pivots data, 21550 to 21750 is the Nifty 50 trading range.

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