Market Rebounds: Green Finally Appears After 8 Days

At the close, the Nifty 50 was at 17,450.90 up by 0.85%

NSE Nifty 50 index was able to recover from its eight consecutive sessions of decline and registered gains during the trading session. Today, the NSE Nifty 50 opened at a high and rose by 0.85%, closing in the green. The Nifty closed above 17,400, a significant milestone. This marks a positive start to the trading week, with investors feeling optimistic about the future.

Markets witnessed a relief rally after eight consecutive sessions of losses. This was likely due to a combination of factors, including broad-based buying, short covering, and an uptick in European and select Asian indices, which aided the overall market sentiment. Broad-based buying refers to investors buying stocks across various sectors, rather than focusing on specific stocks or sectors. Short covering occurs when investors who have sold shares short buy them back to close their positions, which can lead to increased demand for stocks and higher prices. An uptick in European and select Asian indices may have also boosted investor confidence, as global markets can have an impact on local markets. Overall, the relief rally may have provided some respite to investors who had experienced losses in the previous sessions. However, market performance can be unpredictable.

Buzzing

Adani’s stocks have risen for a second consecutive session, following the group’s reassuring statements during its Asia roadshow. During the roadshow, the company reportedly informed investors that it is capable of fulfilling its obligations in the upcoming years and generating cash, which may have helped to boost investor confidence. This may have led to increased demand for Adani’s stocks, resulting in higher prices.

Adani Enterprises Ltd continued to experience positive momentum, jumping nearly 8% following a gain of 14% on the previous day. Additionally, other Adani Group companies such as Adani Green Energy Ltd, Adani Total Gas Ltd, Adani Transmission, Adani Wilmar Ltd, NDTV Ltd, and Adani Power Ltd touched their 5% upper circuit for the second consecutive day. Adani Ports and SEZ rose by 2.33%, while ACC Ltd and Ambuja Cement also saw gains, jumping by 1.4% and 2.7%, respectively.

Metal stocks, which had been on a declining trend for the past three months, are seeing a rebound in their performance. This may be due to a combination of factors, including easing coking coal prices, lower Chinese production, and better domestic prospects. Coking coal is a key ingredient in the production of steel, so lower prices can benefit metal companies. Additionally, lower Chinese production may help to reduce global oversupply, which can lead to higher prices. Better domestic prospects may also be contributing to the rebound, as improving economic conditions in India can lead to increased demand for metals.

On March 1, the Nifty Metal index was the best performer among all sectoral indices on the National Stock Exchange (NSE), indicating that metal stocks were experiencing positive momentum.

Bank Nifty: Up by 1.07%

The Bank Nifty opened in the green and surged 1.07%, closing at 40,698.15. There was a notable increase in banking activity today. Additionally, the BSE Sensex rose 0.76%, closing at a record high of 59,411.08.

All sectoral indices ended the day with gains. The Nifty metal index recorded the highest gain among the sectoral indices, adding 4%. The PSU bank index also performed well, gaining 3%. Additionally, the Nifty auto, bank, and information technology (IT) indices all gained 1% each. This indicates that the positive sentiment in the stock market was broad-based, with multiple sectors recording gains.

Bank Nifty

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

The gainers included Federal Bank with a 4.03% increase, Punjab National Bank with a 3.62% increase, Bank of Baroda with a 3.40% increase, AU Bank with a 2.94% increase and State Bank of India with a 2.57% increase. On the other hand, the biggest losers in the sector included HDFC Bank with a 0.04% decline. These results suggest that some banking stocks performed better for the day.

Advance Decline Ratio

Today, the advance-decline ratio was 3.31, and the market breadth was positive. The volatility index India Vix decreased by 7.31 percent to settle at 13.00 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1720
Decliners – 519
52Wk High –  25
52Wk Low – 96
High Band Hitters – 102
Low Band Hitters – 43
200d SMA – 17383
50d SMA – 17886
20d SMA – 17731

Top Gainers and Losers Stocks

The top gainers were Adani Enterprises (+15.78%), Hindalco (+3.68%), UPL (+2.79%), SBIN (+2.57%), and IndusInd Bank (+2.45%).

The top losers were Britannia (-1.83%), Power Grid (-1.55%), Cipla (-0.72%), BPCL (-0.43%), and HDFC Bank (-0.04%).

Top Gainers and Losers Sector

The top gainers sectors were Metal (+3.96%), Media (+1.92%), IT (+1.46%), Realty (+1.16%) and Oil & Gas (+1.06%).

The Nifty Midcap 50 was up by 1.31 percent, while the Nifty Small Cap 50 was up by 1.31 percent on the day.

The Nifty Midcap 50 index currently closed at 8,567.70, while the Nifty Small Cap 50 index currently closed at 4,181.65.

SECTORS – NOTABLE ACTION
METAL +3.96%
MEDIA +1.92%
IT +1.46%

Stocks Ban List

F&O ban, Securities and Exchange Board of India (SEBI) has not put any stocks under the F&O ban for the current trading day.

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.

GNFC and IBULHSGFIN has a possibilites of entery in a ban list.

Daily Pivots

As per the above pivots data, 17370 to 17500 is the Nifty 50 trading range.

Read previous -Daily Insights- here
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Volatile Market on the Monthly Expiry

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