Has the Nifty50 Just Rewritten the Record Books? What Fueled the Rise!

NiftyTrader • July 26, 2024

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Index	Price	Change	% Chg
Nifty 50	24,834.85	+428.75	+1.76%
Nifty MidCap 50	16,296.30	+357.45	+2.24%
Nifty SmallCap 50	8,813.25	+99.80	+1.15%
Nifty Bank	51,295.95	+407.20	+0.80%
Nifty Financial	23,316.70	+267.20	+1.16%
BSE SENSEX	81,332.72	+1292.92	+1.62%

At the close, the Nifty 50 was at 24,834.85 up by 1.76%

On a positive note, the NSE Nifty 50 kicked off the day with a robust 1.76% increase, closing at 24,834.85, just shy of its all-time high of 24,861.15. After a challenging five-day losing streak, the index made a strong comeback, buoyed by value buying at lower prices and gains across major blue-chip stocks.

Despite mixed global cues, the Nifty 50 surged as the day progressed, marking a fresh peak driven by broad-based sectoral gains.

This rebound signals a notable shift in market sentiment. The Nifty’s recent upward consolidation breakout on the daily chart indicates rising optimism among investors. The index’s sustained performance above the short-term moving average, specifically the 21 EMA, has bolstered bullish momentum, suggesting a potential continuation of this positive trend.

Additionally, positive reactions to strong US GDP data, which boosts global demand prospects, contributed to the domestic market’s rebound. Investors are now focusing on quarterly earnings and sector-specific trends, with Metals and IT sectors leading the charge and midcaps showing impressive performance.

As the Nifty 50 reaches new highs, will this bullish trend persist? How will global economic indicators and domestic earnings reports shape the market’s trajectory?

Bank Nifty: Up by 0.80%

The Bank Nifty saw a turnaround today, opening in the red but eventually rising by 0.80% to close at 51,295.95. This shift highlights a recovery in banking stocks, contributing to a more positive market sentiment. Similarly, the BSE Sensex experienced a strong rally, climbing 1.62% to end the day at an impressive 81,332.72.

Sectorial remarkable display of strength, the metals sector surged by an impressive 3.01% today. Vedanta Ltd. led the charge, gaining a robust 3.79%. Not far behind, Jindal Steel & Power Ltd. climbed by a significant 3.65%, while NMDC Ltd. posted a solid 3.49% increase.

This rally has left the sector with no losers, showcasing a day of exceptional performance across the board.

(FIIs) reported a net buy value of Rs. 2,546.38 crore. Their total buy value stood at Rs. 18,201.30 crore, while the sale value was Rs. 15,654.92 crore.

In contrast, (DIIs) exhibited a stronger net buy value of Rs. 2,774.31 crore. DIIs had a total buy value of Rs. 18,856.44 crore and a sale value of Rs. 16,082.13 crore.

Bank Nifty

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

The gainers included Bandhan Bank with a 3.64% increase, AU Bank with a 3.05% increase, Kotak Bank with a 2.03% increase, IndusInd Bank with a 1.81% increase, and Punjab National Bank with a 1.80% increase.

On the other hand, the biggest losers in the sector included Federal Bank with a 3.25% decline, IDFC First Bank with a 0.11% decline, and HDFC Bank with a 0.02% decline. These results suggest that most of the banking stocks performed better for the day.

Gold and Silver

22 K Gold / g	₹ 6,300	-100 ∇
24 K Gold / g	₹ 6,873	-109 ∇
18 K Gold / g	₹ 5,155	-82 ∇

Silver / g	₹ 84.50
Silver / kg	₹ 84,500

Rupee Hits Record Low: What’s Driving the Decline?

The Indian rupee is facing a turbulent ride. It hit a record low of 83.72 against the US dollar on July 26, marking a continuous decline for the fourth consecutive week. A perfect storm of factors is driving this depreciation: surging dollar demand from key players like oil companies and banks, coupled with a cautious investor sentiment.

Adding to the woes is the volatile Chinese yuan and the Reserve Bank of India’s (RBI) strategy of allowing a gradual rupee weakening. While the US economy showed unexpected growth in the second quarter, inflation pressures seem to be easing. Investors are now keenly watching the US personal consumption expenditure (PCE) price index data, which could offer clues about the Federal Reserve’s monetary policy stance.

With the RBI likely to maintain its cautious approach, the rupee’s journey downwards might continue. The burning question is: Can the rupee weather this storm, or will it face even stronger headwinds in the coming weeks?

Stocks Highlights

Cipla Ltd. is having a moment in the sun, with its share price soaring by an impressive 5.76% to reach Rs 1,586.50. Investors are clearly excited, thanks to a juicy dividend announcement of Rs 13 per share and a robust Return on Equity (ROE) of 15.43% – a significant uptick from its five-year average. However, there’s a cloud over this silver lining: the company’s quarterly revenue dipped by 5.54%.

Meanwhile, the oil and gas sector is facing a headwind. Oil and Natural Gas Corporation (ONGC) saw its share price slip by 1.04% to Rs 332.30. Despite a healthy ROE of 14.6% and a bullish technical indicator, the stock’s performance pales in comparison to its three-year return of 193.15%, which outshines the Nifty 100 by a wide margin.

While ONGC’s spending on interest and employee expenses remains controlled at 1.59% and 1.14% of operating revenues respectively, the question is: can this oil giant regain its momentum and ride the wave of profitability once more?

Advance Decline Ratio

Today, the advance-decline ratio was 2.04, and the market breadth was positive. The volatility index India Vix decreased by 2.93 to settle at 12.25 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1789
Decliners – 875
52Wk High – 199
52Wk Low – 9
High Band Hitters – 163
Low Band Hitters – 21
200d SMA – 21865
50d SMA – 23597
20d SMA – 24413