Selective Buying Strategy Pays Off as Nifty Reaches New Milestone

At the close, the Nifty 50 was at 23,465.60 up by 0.29%

Indian stock markets scaled new heights on Friday, June 14th. The benchmark Nifty 50 index continued its winning streak, closing above 23,450 for the fourth consecutive day and reaching a record high. This positive momentum followed a similar performance by the Sensex, which ended higher for the third straight session.

NSE Nifty 50 opened in the green and rose by 0.29%, marking an all-time high, consolidating its position for the fifth straight day. The index experiencing range-bound movement before a final-hour buying spree pushed it to new heights.

The rally was driven by a combination of factors. State-owned companies and energy stocks, buoyed by hopes of continued government spending, played a significant role in propelling the indices upward. Additionally, the positive sentiment emanating from record-breaking closing highs in the US markets on Thursday likely contributed.

However, analysts foresee a potential pause in the market’s upward trajectory. The lack of fresh triggers, coupled with the Federal Reserve’s hawkish stance on interest rates, might lead to near-term consolidation. Investors are now looking towards the upcoming Union Budget for cues, with some anticipating a focus on welfare schemes that could benefit consumption-driven stocks.

Overall, Friday’s performance marked a significant milestone for Indian markets, with both the Nifty 50 and Sensex reaching record highs. While a temporary period of consolidation may be on the horizon, the future outlook remains cautiously optimistic, driven by potential domestic policy measures and continued global investor confidence.

Bank Nifty: Up by 0.31%

The Bank Nifty continued its sideways trading pattern this week, unable to break above the psychological 50,000 mark. This level holds significant weight as it carries the highest concentration of investor bets (call options) expecting a rise. Despite this resistance, the Bank Nifty managed to inch higher, opening and closing the week in positive territory at 50,002.00.

Meanwhile, the broader market index, the BSE Sensex, displayed greater strength. The Sensex climbed 0.24% throughout the week, culminating in a record closing high of 76,992.77.

In the sectorial front, the auto sector emerged as the champion, surging by a noteworthy 1.30%. Leading the charge within this sector were Bharat Forge Ltd., whose stock price climbed an impressive 4.72%, and Samvardhana Motherson International Ltd., which witnessed a healthy gain of 3.67%.

On the flip side, the IT sector encountered some turbulence, taking a dip of 0.87%. Mphasis Ltd. bore the brunt of the decline, with its stock price falling by a substantial 2.06%. Coforge Ltd. also experienced a setback, with its share value dropping by 1.52%.

FIIs/FPIs exhibited robust buying activity, with a buy value of Rs. 15,691.02 crore and a sale value of Rs. 13,515.16 crore. This resulted in a net investment value of Rs. 2,175.86 crore.

DIIs, on the other hand, engaged in relatively balanced investment activities. They recorded a buy value of Rs. 11,876.45 crore and a sale value of Rs. 11,220.69 crore, resulting in a net investment value of Rs. 655.76 crore.

Bank Nifty

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

The gainers included Punjab National Bank with a 1.72% increase, Bank of Baroda with a 1.17% increase, Federal Bank with a 1.10% increase, HDFC Bank with a 0.94% increase, and IDFC First Bank with a 0.86% increase.

On the other hand, the biggest losers in the sector included AU Bank with a 1.04% decline, IndusInd Bank with a 0.58% decline, State Bank of India with a 0.56% decline, Kotak Bank with a 0.31% decline, and ICICI Bank with a 0.21% decline. These results suggest that some of the banking stocks performed better for the day.

Gold and Silver

Today 22 Carat Gold Price Per Gram in India (INR)

Today 24 Carat Gold Price Per Gram in India (INR)

Gold Prices Navigate Volatility Amid Economic Indicators

Gold encountered a week marked by volatility, oscillating between support levels around Rs. 70,700 and resistance levels near Rs. 72,150. Despite modest gains of Rs. 350, the precious metal maintained a positive trajectory, buoyed by lower CPI data which lent support to prices. However, the Federal Reserve’s somewhat hawkish policy stance exerted downward pressure on gold throughout the week.

Today Silver Price 1 Gram/KG in India (INR)

Rupee Holds Steady Despite Dollar Strength, RBI Intervention Provides Support

The Indian rupee exhibited resilience on Friday, closing nearly flat against the U.S. dollar. This stability came despite a strengthening dollar that pressured most Asian currencies. The Reserve Bank of India’s (RBI) intervention played a crucial role in preventing the rupee from breaching its record low.

The rupee ended the day at 83.5550 per dollar, a slight change from the previous close. However, it did experience a minor weekly decline of 0.2%.

The dollar’s strength stemmed from global factors, but the rupee managed to stay afloat. While the dollar index fluctuated due to inflation data and the Federal Reserve’s policy announcements, the rupee remained relatively stable.

Looking ahead, analysts expect the rupee to continue trading within a narrow range, possibly between 83.20 and 83.75. This “range-bound” trend reflects the rupee’s current consolidation near its all-time low. A significant depreciation in the dollar, below $103, would be needed to trigger a strong rupee rally above 83.00. Until then, the rupee is likely to maintain its current trajectory.

Stocks Highlights

Eicher Motors (EICH) roared on the stock market today, climbing 2.66% from its previous close. The final trading price settled at Rs. 4,929.00, reflecting strong investor confidence. Interestingly, historical data reveals that significant intraday declines exceeding 5% have only occurred in a mere 2.32% of trading sessions over the past 19 years. This highlights Eicher’s overall resilience.

Furthermore, the company boasts a Return on Equity (ROE) of 22.17% for the fiscal year ending March 31, 2024, exceeding its 5-year average of 17.54%. This impressive profitability ratio indicates efficient use of shareholder capital. Additionally, Eicher keeps operating expenses in check, with employee costs accounting for just 7.47% and interest expenses consuming less than 1% of operating revenue in the last fiscal year.

Tech Mahindra (TECHM), on the other hand, navigated a rough patch. The stock price dipped 1.22% compared to the previous close, ending the day at Rs. 1,372.00. Unlike Eicher, Tech Mahindra’s historical performance shows that significant intraday gains exceeding 5% have only materialized in 2.11% of trading sessions over the past 17 years.

Moreover, Tech Mahindra experienced a concerning trend – its sales declined by 2.47% this year, marking the first revenue contraction in the past three years. This raises questions about the company’s future growth prospects. Notably, while Tech Mahindra delivered a 3-year return of 32.0%, the benchmark Nifty 100 index significantly outperformed with a return of 52.57%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.42, and the market breadth was positive. The volatility index India Vix decreased by 4.93 to settle at 12.82 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1536
Decliners – 1085
52Wk High – 236
52Wk Low – 4
High Band Hitters – 139
Low Band Hitters – 27
200d SMA – 21230
50d SMA – 22583
20d SMA – 22883

Top Gainers and Losers Stocks

The top gainers were Eicher Motors (+2.66%), Adani Ports (+2.23%), M&M (+2.18%), Shriram Finance (+1.75%), and Titan (+1.69%).

The top losers were Tech Mahindra (-1.22%), TCS (-1.16%), Wipro (-1.13%), HCL Technologies (-0.90%), and Larsen & Toubro (-0.61%).

Top Gainers and Losers Sectors

The top gainers sector were Auto (+1.30%), Consumer Durables (+1.20%), Realty (+0.82%), Metal (+0.73%), and Oil & Gas (+0.60%).

The top losers sector were IT (-0.87%), and Media (-0.03%).

SECTORS – NOTABLE ACTION
AUTO +1.30%
CONSUMER DURABLES +1.20%
REALTY +0.82%
IT -0.87%
MEDIA -0.03%

Stocks Ban List

(SEBI) F&O ban list (SUNTV open at -759.00 and close at -757.55), (HINDCOPPER open at -336.00 and close at +336.90), (INDIACEM open at -220.60 and close at +221.42), (GMRINFRA open at +92.88 and close at +93.92), and (SAIL open at -149.70 and close at +153.63) 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.

PNB, PEL, BSOFT, IEX, BANDHANBNK, ZEEL, and GNFC stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 23250 to 23650 is the Nifty 50 trading range.

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