Benchmark Indices Continue Winning Streak for Fourth Consecutive Session

At the close, the Nifty 50 was at 20,267.90 up by 0.67%

The NSE Nifty 50 commenced the new series on December 1st with remarkable strength, initiating the day positively and achieving a notable increase of 0.67% before concluding on a high note. Surpassing the 20,250 mark, it set a historic precedent, underpinned by investor optimism fueled by stronger-than-expected GDP figures. This surge was bolstered by extensive buying across various sectors, excluding the automotive domain. Continuing the upward momentum from previous sessions, this marked the fourth consecutive day of gains for India’s Nifty 50, reaching an unprecedented pinnacle. The optimism stemmed from accelerated economic growth in the September quarter, further enhancing positive sentiments regarding global interest rate dynamics.

India’s economic growth showcased exceptional resilience, expanding by 7.6% in the September quarter, surpassing both economists’ forecasts of 6.8% and the Reserve Bank of India’s estimated 6.5%. The manufacturing sector played a pivotal role in propelling this growth trajectory.

Renewed confidence among Foreign Institutional Investors (FIIs) coupled with favorable trends in European markets triggered frenzied buying, propelling the Nifty to soaring heights. India continues to shine as a beacon of stability amidst global uncertainty, leveraging robust GDP and manufacturing statistics, alongside external factors like decreasing US bond yields.

The positive short-term technical outlook for Nifty aligns with bullish trends, amplified by the surpassing GDP figures. Forecasts for FY24’s growth have surged, fostering an optimistic market sentiment. The government’s capital expenditure and heightened manufacturing activities notably boosted stocks in the capital goods and infrastructure sectors.

On a global scale, markets rallied on the anticipation that the European Central Bank (ECB) had potentially concluded its rate-hiking cycle, given the moderating inflation trends. Simultaneously, oil prices sustained a downward trajectory despite OPEC+ supply cuts, contributing to market fluctuations amidst a mix of global economic indicators.

Bank Nifty: Up by 0.75%

The financial markets on the day portrayed a positive trajectory as both the Bank Nifty and BSE Sensex demonstrated robust performances. The Bank Nifty opened with a 0.75% gain, maintaining this upward momentum throughout the trading session and closing at 44,814.20, marking a favorable end. Simultaneously, the BSE Sensex displayed strength, surging by 0.74% and concluding notably higher at 67,481.19, reflecting a bullish sentiment prevailing in the market.

Within sectors, the media segment witnessed substantial growth, showcasing a notable increase of 2.57%. TV18 Broadcast Ltd. notably surged by an impressive 10.79%, while Zee Entertainment Enterprises Ltd. exhibited commendable growth, rising by 4.94%. In contrast, the automotive industry faced a downturn, emerging as the top loser with a decline of 0.36%. Notably, Ashok Leyland Ltd. and Tube Investments Of India Ltd. experienced notable decreases, marking losses of -3.93% and -2.42%, respectively.

Foreign Institutional Investors (FIIs/FPIs) engaged in higher buying activities with a value of Rs. 10,522.36 crore compared to sales worth Rs. 8,932.75 crore, culminating in a net value of Rs. 1,589.61 crore. Similarly, Domestic Institutional Investors (DIIs) showcased a net positive investment with a buy value of Rs. 11,173.05 crore against sales of Rs. 9,724.97 crore, resulting in a net value of Rs. 1,448.08 crore.

Bank Nifty

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

The gainers included Punjab National Bank with a 3.87% increase, Axis Bank with a 2.68% increase, Bank of Baroda with a 2.36% increase, ICICI Bank with a 1.34% increase, and State Bank of India with a 1.26% increase. On the other hand, the biggest losers in the sector included HDFC Bank with a 0.41% decline, Kotak Bank with a 0.33% decline, IndusInd Bank with a 0.29% decline, and Bandhan Bank with a 0.07% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Indian Rupee Gains Strength, Economy Shows Resilience

The Indian rupee showcased notable strength, marking its most significant daily performance in a fortnight, propelled by robust domestic economic indicators and a marginal weakening of the US dollar. Closing at 83.2875 against the U.S. dollar, the rupee demonstrated a 0.13% rise compared to its previous close of 83.3950, reflecting positive market sentiments.

Foreign Institutional Investors (FIIs) displayed a bullish sentiment, purchasing equities worth Rs 8,147.85 crore on Thursday, underscoring confidence in India’s economic prospects.

India continues to maintain its position as the world’s fastest-growing major economy, with a GDP growth of 7.6% in the September quarter. This robust expansion, surpassing expectations, stems from strategic government spending and a resilient manufacturing sector.

Speaking of manufacturing, November witnessed continued vigor in India’s manufacturing sector. The month saw a sustained strong performance, attributed to a significant reduction in price pressures and escalating demand from clientele. A monthly survey highlighted this sector’s resilience and its pivotal role in driving economic growth.

On the global front, Brent crude, the international oil benchmark, experienced a decline of 0.57%, settling at USD 80.40 per barrel. This dip holds implications for India’s energy landscape, influencing factors within its oil-dependent sectors and trade dynamics.

Buzzing

Axis Bank Ltd. exhibited a promising upward trend, with its share price rising by 2.68% to reach Rs 1,103.00 from its previous close at Rs 1,074.25. This surge has triggered a Buy Signal as a Daily MACD crossover occurred on Nov 29, 2023. Historical data reveals an average price gain of 4.33% within 10 days of such signals in the last decade. However, intraday gains higher than 5% were observed in only 2.78% of trading sessions in the past 19 years. The company’s PE ratio stands at 25.95, reflecting a strong position with an EPS (TTM) of Rs. 42.58. With an MCap of Rs. 3,40,426 crore, it ranks 5th in sectoral market capitalization, showcasing significant market presence. A PB ratio of 2.44 signifies its market value relative to its book value, while a modest dividend yield of 0.09% emphasizes the company’s stable financial metrics within its sector.

On the other hand, Wipro Ltd. experienced a marginal decrease of -1.44%, trading at Rs 407.10 from its previous close at Rs 413.05. Despite this minor decline, multiple bullish trends were observed, including 5, 50, and 200-day moving crossovers on Nov 29, 2023. Historical data indicates average gains of 2.46%, 3.95%, and 3.4% within 7, 30, and 30 days, respectively, following these signals over the past 5 years. Notably, only 1.36% of trading sessions in the last 19 years saw intraday gains higher than 5%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.29, and the market breadth was positive. The volatility index India Vix decreased by 2.42 percent to settle at 12.38 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1383
Decliners – 1074
52Wk High –  219
52Wk Low – 10
High Band Hitters – 93
Low Band Hitters – 47
200d SMA – 18808
50d SMA – 19593
20d SMA – 19667

Top Gainers and Losers Stocks

The top gainers were ITC (+3.06%), NTPC (+2.93%), Axis Bank (+2.68%), Larsen & Toubro (+2.41%), and Britannia (+2.38%).

The top losers were Wipro (-1.44%), HDFC Life (-1.32%), Hero MotoCorp (-1.28%), M&M (-1.26%), and SBI Life (-1.04%).

Top Gainers and Losers Sector

The top gainers sector were Media (+2.57%), FMCG (+1.58%), Realty (+1.32%), Metal (+0.99%), and Consumer Durables (+0.85%).

The top losers sector were Auto (-0.36%).

SECTORS – NOTABLE ACTION
MEDIA +2.57%
FMCG +1.58%
REALTY +1.32%
AUTO -0.36%

Stocks Ban List

Today, SEBI’s F&O hasn’t included any stocks in the ban list.

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.

Daily Pivots

As per the above pivots data, 20150 to 20350 is the Nifty 50 trading range.

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