Bank Nifty Breaks Consolidation, Rises Above Support Line

At the close, the Nifty 50 was at 19,444.00 up by 0.25%

The trading day commenced with a flat opening, setting the tone for a cautious start. During the first half, the market seemed to be locked in a rangebound pattern, with neither strong buying nor selling pressure evident. However, a significant shift occurred during the second half as buying activity gained momentum, allowing the market to close near the day’s high. This resurgence follows a relatively subdued previous session and marks a positive turn for equity indices.

NSE Nifty 50 made notable strides, opening higher and closing with a 0.25% gain, indicating investor optimism. The index managed to sustain itself above the 19400 mark, showcasing resilience in the face of recent market uncertainties.

On the global front, international markets have remained relatively stable, with many market participants adopting a cautious stance as they eagerly await the outcome of the central bankers’ gathering at the upcoming Jackson Hole event set for this Friday. The looming possibility of another US rate hike and its potential impact on bond yields continue to be key points of concern, contributing to the ongoing volatility in global markets.

Bank Nifty: Up by 1.10%

Bank Nifty Rebounds Strongly, Boosts Market Confidence In a remarkable reversal, the Bank Nifty demonstrated a swift and decisive pullback, significantly impacting market sentiment just a day before the weekly expiry. The banking sector emerged as a pillar of strength, offering robust support to the broader market dynamics.

The Bank Nifty’s trajectory mirrored this renewed vigor as it commenced the session on a positive note, continuing its ascent to register an impressive 1.10% gain by the day’s close, settling at 44,479.05. This gain symbolizes the sector’s renewed vitality and its role in shoring up the market’s overall health.

Of particular significance was the Bank Nifty’s resolute breakout from a six-day consolidation phase. This marked breakout enabled the index to resurface convincingly above a previously downward-sloping support trendline. This development underlines the sector’s resilience and ability to navigate challenges, fostering a bullish sentiment.

Echoing this upward momentum, the BSE Sensex experienced a 0.33% rise, culminating in a positive close at an impressive high of 65,433.30. The synchronized movement of both indices underscores the broader market’s optimistic outlook and renewed confidence.

In a noteworthy development, the Financial Services sector exhibited the highest gain, surging by 0.92%. Within this sector, Cholamandalam Investment And Finance Company Ltd. demonstrated remarkable growth, with a substantial 2.51% gain, while Axis Bank Ltd. also posted impressive gains of 2.11%.

Conversely, the Fast-Moving Consumer Goods (FMCG) sector faced a decline, with a notable loss of 0.49%. Within this sector, Radico Khaitan Ltd. experienced a substantial decrease, with a -3.13% loss, while Varun Beverages Ltd. also recorded losses, albeit less severe, at -2.05%.

Bank Nifty

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

The gainers included Federal Bank with a 4.15% increase, Bandhan Bank with a 2.13% increase, Axis Bank with a 2.11% increase, ICICI Bank with a 1.58% increase, and Bank of Baroda with a 1.45% increase. On the other hand, the biggest losers in the sector included IndusInd Bank with a 0.14% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

Hindalco Industries Ltd. experienced a 2.34% increase in its share price from its previous close of Rs 450.35, reaching a last traded price of Rs 460.90.

Over the 3-year period, Hindalco Industries Ltd. yielded an impressive return of 129.48%, outshining the Nifty 100’s return of 67.33%. This indicates Hindalco’s ability to generate substantial value for its investors, potentially tied to its strategic initiatives and market positioning.

A noteworthy technical event occurred with the 50-day moving average crossover on August 21, 2023. Historical data reveals an average price gain of 6.07% within 30 days of this signal over the past 5 years. Interestingly, spanning the last 18 years, a mere 2.61% of trading sessions exhibited intraday gains exceeding 5%. This emphasizes Hindalco’s steady performance, with significant intraday gains being infrequent yet reflecting the company’s overall stability.

Adani Enterprises Ltd. encountered a notable -5.89% decline from its preceding close of Rs 2,698.05, arriving at a last traded price of Rs 2,539.00.

Over the span of 3 years, Adani Enterprises Ltd. achieved an exceptional return of 1056.22%, surpassing Nifty 100’s return of 67.33%. This impressive performance underscores the company’s ability to generate substantial value and is indicative of strategic prowess.

A noteworthy technical development emerged with the Daily MACD crossover on August 21, 2023. Historical data indicates an average price gain of 7.22% within 10 days following this signal over the past 10 years. Traders may find this information valuable for short-term strategic decisions. Moreover, Adani Enterprises Ltd.’s annual revenue growth of 96.18% has outperformed its 3-year Compound Annual Growth Rate (CAGR) of 45.79%. It is worth noting that over the last 18 years, merely 4.83% of trading sessions exhibited intraday gains exceeding 5%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.40, and the market breadth was positive. The volatility index India Vix decreased by 0.17 percent to settle at 11.73 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1360
Decliners – 970
52Wk High –  161
52Wk Low – 16
High Band Hitters – 88
Low Band Hitters – 26
200d SMA – 18334
50d SMA – 19351
20d SMA – 19529

Top Gainers and Losers Stocks

The top gainers were Hindalco (+2.34%), Axis Bank (+2.11%), ICICI Bank (+1.58%), Divi’s Laboratories (+1.55%), and LT (+1.47%).

The top losers were Adani Enterprises (-5.89%), Jio Financial (-4.99%), Adani Ports (-2.86%), Sun Pharmaceutical (-1.37%), and Tech Mahindra (-1.15%).

Top Gainers and Losers Sector

The top gainers sectors were Financial Services (+0.92%), Media (+0.68%), Consumer Durables (+0.53%), Realty (+0.43%), and IT (+0.07%).

The top losers sectors were FMCG (-0.49%), Oil & Gas (-0.31%), Metal (-0.13%), Pharma (-0.13%), and Auto (-0.06%).

The Nifty Midcap 50 was up by 0.66 percent, while the Nifty Small Cap 50 was up by 1.44 percent on the day.

The Nifty Midcap 50 index currently closed at 11,081.70, while the Nifty Small Cap 50 index currently closed at 5,455.30.

SECTORS – NOTABLE ACTION
FINANCIAL SERVICES +0.92%
MEDIA +0.68%
CONSUMER DURABLES +0.53%
FMCG -0.49%
OIL & GAS -0.31%
METAL -0.13%

Stocks Ban List

(SEBI) F&O ban list  (BHEL open at +113.00 and close at -109.50), (MANAPPURAM open at +147.10 and close at -146.10), (HINDCOPPER open at +146.50 and close at +148.30), (ESCORTS open at +2939.90 and close at -2900.55), (INDIACEM open at -239.00 and close at -238.85), (METROPOLIS open at -1335.00 and close at -1325.10), (GNFC open at +554.00 and close at +557.50), (PNB open at +62.50 and close at +63.35), (DELTACORP open at +182.20 and close at -181.30), (SAIL open at -86.35 and close at +86.05), (IBULHSGFIN open at -153.30 and close at +153.00), and (ZEEL open at +273.00 and close at +273.90) 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.

RECLTD, RBLBANK, CANBK, GRANULES, NMDC, VEDL, and L&TFH stocks has the possibilities of enterance in the ban list.

DELTACORP, SAIL, IBULHSGFIN, and ZEEL stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 19370 to 19500 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Refining Persistence: Insights from Accomplished Experts
Nifty Struggles with Resistance Trend Line
Indian Equity Indices Rebound, Close Higher on Broad Sectoral Buying
Indian Benchmark Indices Extend Losses Amidst Volatility

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