Record Highs Despite Mixed Global Cues in the Indices

At the close, the Nifty 50 was at 22,097.45 up by 0.93%

In a bullish start to the week, the NSE Nifty 50 soared by 0.93%, closing above the 22,050 mark and extending its winning streak to five sessions. The surge was predominantly led by robust purchasing activities, with the information technology sector playing a pivotal role in this ascent. Positive earnings also added fuel to the market’s fire, propelling the benchmark indices to record highs.

Monday’s rally, spearheaded by major players in the IT industry, contributed significantly, resulting in a gain of around 203 points. Analysts predict that the Nifty’s impressive performance, coupled with sector rotation, is poised to sustain its elevated levels. The spotlight now shifts to potential contributions from the auto and FMCG sectors, promising further momentum.

The market’s upward trajectory gains momentum, driven by optimism surrounding increased discretionary spending and notable deal wins in the IT sector. As US bond yields dip, investors anticipate the commencement of the FED easing cycle in March. A cautious approach is evident among investors, who are closely monitoring global economic indicators, including Chinese GDP and UK inflation data, scheduled for release this week. In this dynamic market landscape, strategic caution is the key for savvy investors.

Bank Nifty: Up by 0.94%

The Bank Nifty and BSE Sensex exhibited a promising start, with the former recording a 0.94% increase to conclude at 48,158.30, and the latter climbing by an impressive 1.05%, reaching a peak of 73,327.94. This bullish momentum indicates a positive market sentiment, particularly in the financial sector.

Companies listed on the Bombay Stock Exchange (BSE) observed a substantial uptick, surging by nearly Rs 3 lakh crore to approximately Rs 3.76 lakh crore, highlighting the growing valuation within the BSE index.

In the sectorial landscape, the Information Technology (IT) sector demonstrated robust growth of 1.86%, with standout performances from Wipro Ltd. (6.37% gain) and HCL Technologies Ltd. (3.06% rise). Conversely, the Media sector faced a downturn, with Dish TV India Ltd. experiencing a significant loss of -8.33%, and Zee Entertainment Enterprises Ltd. grappling with a downturn of -2.88%.

Foreign Institutional Investors (FIIs/FPIs) displayed bullish confidence with a net value of Rs. 1,085.72 crore, while Domestic Institutional Investors (DIIs) reported a negative net value of -Rs. 820.69 crore, signaling a net selling position by domestic investors during the observed period. This data underscores the continued interest of foreign investors in the Indian market amidst dynamic sectoral shifts.

Bank Nifty

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

The gainers included HDFC Bank with a 2.35% increase, Federal Bank with a 1.39% increase, State Bank of India with a 1.14% increase, Kotak Bank with a 0.97% increase, and IndusInd Bank with a 0.89% increase. On the other hand, the biggest losers in the sector included AU Bank with a 2.26% decline, and IDFC First Bank with a 0.17% decline. These results suggest that most of the banking stocks performed better for the day.

Rupee Continues Winning Streak, Gains Against US Dollar Amid Bullish Equities

The Indian rupee maintained its winning momentum, securing gains for the ninth consecutive session and closing at 82.89 (pro) against the US dollar on Monday. Opening at 82.82, the currency traded within the range of 82.77 to 82.91 during intra-day deals at the interbank foreign exchange. This upward trajectory resulted in a 6 paise gain over the previous close, fueled by a bullish trend in the domestic equity markets, which achieved unprecedented highs.

Over the last nine trading sessions, the rupee has strengthened by 48 paise from its January 2 level of 83.32 against the dollar, showcasing sustained positive market sentiment and confidence in the domestic economic landscape.

Simultaneously, the US dollar index, gauging the greenback’s strength against a basket of six currencies, saw a marginal 0.09% uptick at 102.49. In contrast, Brent crude futures, the global oil benchmark, experienced a 0.66% decline, settling at $77.77 per barrel.

As the rupee stands resilient against the dollar amidst the surge in equities, investors are attentively monitoring its performance for potential implications on international trade and economic stability. This consistent appreciation underscores the currency’s role as a key indicator of India’s economic robustness in the global landscape.

Stocks Highlights

Wipro Ltd. witnessed a notable surge in its share price, rising by 6.37% from its previous close of Rs 465.45 to reach Rs 495.10. Despite this positive movement, the company reported a QoQ revenue decline of 1.95%, marking its lowest performance in the last three years. Wipro allocated 1.11% of its operating revenues to interest expenses and dedicated 59.42% towards employee costs in the fiscal year ending on March 31, 2023. The company also announced a dividend of Rs 1.0 per share on January 12, 2024, with a record date set for January 24, 2024.

In contrast, Eicher Motors Ltd. experienced a slight dip in its share price, decreasing by -1.16% from its previous close of Rs 3,870.85 to Rs 3,826.00. The company’s robust annual revenue growth of 40.03% surpassed its 3-year CAGR of 15.58%. Eicher Motors maintained a prudent financial strategy, allocating less than 1% of its operating revenues to interest expenses and 6.94% towards employee costs in the fiscal year ending on March 31, 2023. Investors are closely monitoring these contrasting trends in Wipro and Eicher Motors for strategic investment decisions.

Advance Decline Ratio

Today, the advance-decline ratio was 1.07, and the market breadth was positive. The volatility index India Vix increased by 5.22 percent to settle at 13.79 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1317
Decliners – 1235
52Wk High –  284
52Wk Low – 6
High Band Hitters – 164
Low Band Hitters – 66
200d SMA – 19389
50d SMA – 20700
20d SMA – 21592

Top Gainers and Losers Stocks

The top gainers were Wipro (+6.37%), ONGC (+4.30%), HCL Technologies (+3.06%), Infosys (+2.43%), and HDFC Bank (+2.35%).

The top losers were HDFC Life (-3.55%), Bajaj Finance (-2.40%), Bajaj Finserv (-1.20%), Hindalco (-1.19%), and Eicher Motors (-1.16%).

Top Gainers and Losers Sector

The top gainers sector were IT (+1.86%), Oil & Gas (+1.73%), Pharma (+1.00%), Financial Services (+0.75%), and Consumer Durables (+0.35%).

The top losers sector were Media (-1.90%), and Metal (-0.43%).

SECTORS – NOTABLE ACTION
IT +1.86%
OIL & GAS +1.73%
PHARMA +1.00%
MEDIA -1.90%
METAL -0.43%

Stocks Ban List

(SEBI) F&O ban list (POLYCAB open at +4094.95 and close at +4198.20), (METROPOLIS open at -1510.05 and close at +1555.55), (CHAMBLFERT open at +383.80 and close at +385.65), (ZEEL open at -251.95 and close at -242.80), (HINDCOPPER open at -263.40 and close at -256.95), (DELTACORP open at -153.90 and close at -149.20), (BHEL open at +204.50 and close at +201.25), (PVRINOX open at +1545.00 and close at -1513.30), (BANDHANBNK open at -231.50 and close at +231.00), (INDUSTOWER open at +218.00 and close at +218.25), (INDIACEM open at +260.00 and close at -257.30), (ESCORTS open at +2891.00 and close at +2901.45), (PEL open at -937.90 and close at +932.75), (SAIL open at +116.00 and close at -114.65), and (NATIONALUM open at +132.60 and close at +135.30) 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.

BIOCON, GNFC, ASHOKLEY, ABFRL, RBLBANK, IEX, BALRAMCHIN, UPL, and PNB stocks has the possibilities of entrance in the ban list.

INDIACEM, ESCORTS, PEL, SAIL, and NATIONALUM stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 21900 to 22200 is the Nifty 50 trading range.

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