Nifty Skyrockets to New Heights on Impressive GDP Figures

At the close, the Nifty 50 was at 22,338.75 up by 1.62%

On March 1, the NSE Nifty 50 index kicked off on a positive note, marking a significant rise of 1.62% and concluding the session in the green. Surpassing the 22,300 mark, the Nifty achieved a new high, buoyed by robust GDP data, improved auto sales figures, and in-line US inflation numbers. The bullish momentum was further propelled by positive sentiments surrounding potential rate cuts.

Notably, the Nifty’s performance in the March series commenced on an optimistic trajectory, with gains steadily increasing throughout the day, culminating in a record high of 22,338.75, reflecting an increase of approximately 356 points. Technical analysis suggests a breakout from a Running Triangle pattern on the daily charts, signaling the initiation of a fresh upward trend.

The latest GDP growth rate, revealed by the Ministry of Statistics and Programme Implementation on February 29, soared to 8.4% in the December quarter, marking the highest growth rate in six quarters. This robust economic performance has instilled confidence in market participants, driving the Nifty’s upward trajectory.

Supported by sustained movement above moving averages and confirmed by a bullish crossover in the Relative Strength Index (RSI), market sentiment remains positive, fostering expectations of further upward movements and encouraging buying into dips.

In particular, heavyweights in the banking sector have played a pivotal role in driving the market to reclaim its record high, with expectations of continued participation from this sector maintaining the prevailing bullish tone, supplemented by supportive contributions from other sectors on a rotational basis.

Bank Nifty: Up by 2.53%

On the trading front, the Bank Nifty commenced the session on a positive note, displaying a notable increase of 2.53% and sustaining its upward trajectory throughout the day. Ultimately, it closed in the green zone at 47,286.90, reflecting strong market sentiment and investor confidence in the banking sector.

Likewise, the BSE Sensex, India’s benchmark index, witnessed a significant uptick of 1.72%, closing at a high of 73,745.35. This surge in the Sensex underscores the overall bullish sentiment prevailing in the market, driven by favorable economic indicators and positive developments in key sectors.

In the sectorial front, the metal sector has witnessed substantial gains, with a notable increase of 3.62%. Among the top performers in this sector is Steel Authority of India Ltd., boasting an impressive gain of 10.07%, closely followed by Tata Steel Ltd. with a rise of 6.89%. Conversely, the media sector has experienced a downturn, with a decline of 1.47%. Leading the losses in this sector are Zee Entertainment Enterprises Ltd., witnessing a decrease of -3.08%, and D.B.Corp Ltd. with a loss of -2.53%.

Foreign Institutional Investors (FIIs/FPIs) showcased a buying spree with a buy value of Rs. 15,712.62 crore and a corresponding sale value of Rs. 15,583.68 crore. This resulted in a net value of Rs. 128.94 crore in favor of FIIs/FPIs. Conversely, Domestic Institutional Investors (DIIs) demonstrated a similar trend, albeit with slightly different figures. DIIs recorded a buy value of Rs. 11,987.98 crore against a sale value of Rs. 8,173.45 crore, leading to a net value of Rs. 3,814.53 crore in favor of DIIs.

Bank Nifty

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

The gainers included IndusInd Bank with a 3.33% increase, ICICI Bank with a 3.12% increase, State Bank of India with a 2.93% increase, Punjab National Bank with a 2.42% increase, and Kotak Bank with a 2.23% increase. These results suggest that all of the banking stocks performed better for the day.

Rupee Inches Lower Against US Dollar Amidst Rising Crude Oil Prices

The Indian rupee saw a marginal decline of 1 paisa, settling at 82.90 (pro) against the US dollar on Friday. This movement was influenced by the upward trajectory of crude oil prices in the international market, coupled with heightened demand for the US currency from importers.

However, the rupee found some support from a buoyant rally in equity markets and robust domestic macroeconomic data, which helped mitigate the extent of the currency’s fall.

Trading within a narrow range at the interbank foreign exchange market, the rupee opened at 82.86 and oscillated between 82.84 and 82.91 against the greenback before finally closing at 82.90 (pro), marking a slight decrease of 1 paisa compared to its previous close.

In the preceding session, the rupee had exhibited a minor gain of 2 paise, settling at 82.89 against the US dollar.

Meanwhile, the dollar index, a measure of the dollar’s strength against a basket of six currencies, experienced a marginal dip of 0.02%, reaching 104.07.

Adding to market dynamics, Brent crude futures, the global oil benchmark, surged by 1.26% to $82.94 per barrel, further influencing currency movements and market sentiment.

Stocks Highlights

Tata Steel Ltd. witnessed a notable increase in its share price by 6.89%, reaching Rs 150.55 from its previous close of Rs 140.85. Notably, intraday trading data reveals that only 2.51% of sessions in the last 19 years have seen gains exceeding 5%, indicating a rare occurrence. However, recent market signals suggest a shift, with a 20-day moving average crossover appearing on Feb 28, 2024, signaling a potential sell-off. Historical data indicates an average price decline of -3.01% within 7 days following such signals over the past 5 years. Additionally, the company’s financial allocations depict that 2.59% of operating revenues were directed towards interest expenses, while 9.21% were allocated for employee costs in the fiscal year ending Mar 31, 2023.

Conversely, Dr. Reddy’s Laboratories Ltd. experienced a decline in its share price by -3.65%, dropping to Rs 6,190.00 from the previous close of Rs 6,424.25. Intriguingly, only 0.75% of trading sessions over the past 19 years have observed declines exceeding 5%, indicating a rare market movement. However, amidst this, the company exhibits robust performance metrics, boasting a return on equity (ROE) of 19.35% for the fiscal year ending Mar 31, 2023, surpassing its 5-year average of 14.06%. Furthermore, its annual revenue growth of 16.78% outpaced its 3-year compound annual growth rate (CAGR) of 12.22%. Despite these strong fundamentals, a sell signal emerged with a daily Moving Average Convergence Divergence (MACD) crossover, typically followed by an average price decline of -3.77% within 10 days over the past decade.

Advance Decline Ratio

Today, the advance-decline ratio was 1.84, and the market breadth was positive. The volatility index India Vix decreased by 2.16 percent to settle at 15.24 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1652
Decliners – 900
52Wk High –  99
52Wk Low – 16
High Band Hitters – 139
Low Band Hitters – 52
200d SMA – 20062
50d SMA – 21767
20d SMA – 21984

Top Gainers and Losers Stocks

The top gainers were Tata Steel (+6.89%), Larsen & Toubro (+4.35%), JSW Steel (+4.31%), Titan (+3.77%), and IndusInd Bank (+3.33%).

The top losers were Dr. Reddy’s Lab (-3.65%), Infosys (-1.20%), HCL Technologies (-1.05%), Sun Pharmaceutical (-1.00%), and Britannia (-0.95%).

Top Gainers and Losers Sector

The top gainers sector were Metal (+3.62%), Auto (+2.25%), Oil & Gas (+2.25%), Financial Services (+2.13%), and Consumer Durables (+1.71%).

The top losers sector were Media (-1.47%), Pharma (-0.95%), and IT (-0.54%).

SECTORS – NOTABLE ACTION
METAL +3.62%
AUTO +2.25%
OIL & GAS +2.25%
MEDIA -1.47%
PHARMA -0.95%
IT -0.54%

Stocks Ban List

Today, no stock has been listed in the ban list by (SEBI) F&O.

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.

There is a possibility that ZEEL stocks may enter the ban list.

Daily Pivots

As per the above pivots data, 22100 to 22500 is the Nifty 50 trading range.

Read previous -Daily Insights- here
February’s Nifty50 Index Performance: 1% Monthly Gain and 3% Expiry Surge
GDP Data and Monthly Expiry Weigh on Indian Equity Benchmarks, Closing Over 1% Lower
Indian Stock Market Shows Resilience Despite Global Volatility

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