Benchmarks Near Lifetime Highs on Strong Rally

At the close, the Nifty 50 was at 18,598.65 up by 0.54%

NSE Nifty 50 commenced the day on a remarkable note, ascending to lofty heights and registering a notable gain of 0.54 percent before concluding the trading session on a positive trajectory. The Nifty index, hovering in the vicinity of the 18600 mark, demonstrated its resilience and exhibited a robust performance throughout the day.

In the wake of worldwide optimism triggered by the US government’s attainment of a provisional consensus to enhance the debt ceiling and prevent a default, domestic equities displayed an upward trend. The Nifty, commencing the day with a significant gap-up opening, sustained its positive trajectory throughout the trading session, ultimately concluding with an impressive ascent of 99 points (+0.5%) at levels approximately around 18599. This remarkable performance underscores the market’s buoyancy and reinforces its upward trajectory.

Nifty observed a continuation of buying interest, subsequent to breaking out from a period of sideways consolidation in the previous week. Throughout a significant portion of the trading day, the Nifty exhibited a sideways movement, signifying a consolidation phase following a substantial upward surge. This consolidation phase is regarded as a positive indication for market participants. Additionally, the daily momentum indicator, which had been lagging, has now signaled a bullish crossover, aligning harmoniously with the prevailing price action. This convergence of indicators and price movement further strengthens the positive sentiment in the market.

Bank Nifty: Up by 0.67%

Bank Nifty commenced its trading session on a positive note, mirroring the optimism in the market, and exhibited an impressive surge of 0.67 percent before eventually settling in the green at a notable level of 44,311.90. Likewise, the BSE Sensex, echoing the prevailing positive sentiment, witnessed a substantial gain of 0.55 percent and concluded the day’s trading activity on an upward trajectory, reaching an impressive pinnacle of 62,846.38.

The broader market segments, accompanied by all major sectors, concluded the trading session on a positive note, exhibiting gains across the board. However, the Oil & Gas and IT sectors experienced a marginal decline in their closing values.

The Indian markets are currently witnessing a robust momentum, primarily propelled by the performance of banking and other prominent stocks. Anticipating a continued upward trend in the Nifty, we foresee its trajectory heading towards its all-time highs. This optimistic outlook is bolstered by encouraging global signals, a consistent influx of foreign institutional investments, and the commendable financial performance of corporations.

In the sectoral landscape, Consumer Durables emerged as the top gainer, witnessing a notable increase of 1.29%. Within this sector, TITAN COMPANY LIMITED experienced a gain of 2.62%, followed by KAJARIA CERAMICS LIMITED with a gain of 1.85%, and DIXON TECHNOLOGIES (INDIA) LIMITED with a gain of 1.48%. On the other hand, Oil & Gas emerged as the top loser, declining by 0.54%. Within this sector, ADANI TOTAL GAS LIMITED incurred a loss of 4.04%, followed by OIL & NATURAL GAS CORPORATION LIMITED with a loss of 2.90%, and OIL INDIA LIMITED with a loss of 1.13%.

As of 29/05/2023, Foreign Institutional Investors (FII)/Foreign Portfolio Investors (FPI) recorded a buy value of Rs. 7,767.00 crore and a sale value of Rs. 6,008.84 crore, resulting in a net value of Rs. 1,758.16 crore. Similarly, Domestic Institutional Investors (DII) witnessed a buy value of Rs. 6,217.74 crore, a sale value of Rs. 5,364.17 crore, and a net value of Rs. 853.57 crore on the same date.

Bank Nifty

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

The gainers included AU Bank with a 2.03% increase, State Bank of India with a 1.47% increase, IndusInd Bank with a 1.21% increase, Bandhan Bank with a 1.19% increase and HDFC Bank with a 0.88% increase. On the other hand, the biggest losers in the sector included ICICI Bank with a 0.27% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

Mahindra & Mahindra Ltd. witnessed a notable increase of 3.37% from its previous closing price of Rs 1,281.85, with its stock trading at Rs 1325.05. Notably, a weekly MACD crossover occurred during the week ending May 26, 2023, demonstrating an average price gain of 7.93% within a 7-week period following this signal over the past decade. Furthermore, the company’s impressive annual revenue growth of 34.43% outperformed its 3-year compound annual growth rate (CAGR) of 16.85%. Additionally, Mahindra & Mahindra Ltd. delivered a remarkable return on equity (ROE) of 18.24% for the year ending March 31, 2023, surpassing its 5-year average of 10.72%.

The share price of Oil And Natural Gas Corporation Ltd. experienced a decline of -2.90% from its previous closing value of Rs 163.75, with the stock’s last traded price settling at 159.00. Notably, the stock demonstrated a 3-year return of 96.81%, outperforming the Nifty 100 index which recorded a return of 90.64%. Additionally, the company exhibited an impressive annual revenue growth of 38.94%, surpassing its 3-year compound annual growth rate (CAGR) of 19.31%.

Buzz

The Indian market has exhibited resilience by steadily overcoming concerns, approaching its historical highs. Despite facing some volatility due to weak global cues, the question remains: what lies ahead for the market in the second half of 2023?

Although the Indian market is currently only 3% below its peak, the Nifty50 has predominantly traded within the 16k-18k range over the past two years, despite a significant 25% compound annual growth rate (CAGR) in earnings during the same period. This implies that the absolute valuations have become relatively more affordable.

India’s market capitalization reached an impressive $3.3 trillion, bolstered by a resurgence in Adani shares and a notable surge in foreign investments. Conversely, France witnessed a substantial market value contraction of over $100 billion in the preceding week, predominantly due to a significant sell-off in luxury goods companies.

Advance Decline Ratio

Today, the advance-decline ratio was 1.21, and the market breadth was positive. The volatility index India Vix increased by 3.34 percent to settle at 12.30 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1269
Decliners – 1052
52Wk High –  106
52Wk Low – 31
High Band Hitters – 74
Low Band Hitters – 72
200d SMA – 17827
50d SMA – 17768
20d SMA – 18279

Top Gainers and Losers Stocks

The top gainers were M&M (+3.37%), Titan (+2.62%), Coal India (+1.86%), Tata Steel (+1.83%), and UltraTech Cement (+1.65%).

The top losers were ONGC (-2.90%), Divi’s Laboratories (-1.14%), Power Grid (-1.01%), HCL Tech (-1.00%), and Maruti (-0.70%).

Top Gainers and Losers Sector

The top gainers sectors were Consumer Durables (+1.29%), Metal (+0.94%), Financial Services (+0.84%), Realty (+0.77%), and Auto (+0.63%).

The top losers sectors were Oil & Gas (-0.54%), and IT (-0.39%).

The Nifty Midcap 50 was up by 0.44 percent, while the Nifty Small Cap 50 was up by 0.17 percent on the day.

The Nifty Midcap 50 index currently closed at 9,470.35, while the Nifty Small Cap 50 index currently closed at 4,553.00.

SECTORS – NOTABLE ACTION
CONSUMER DURABLES +1.29%
METAL+0.94%
FINANCIAL SERVICES +0.84%
OIL & GAS -0.54%
IT -0.39%

Stocks Ban List

Today, the Securities and Exchange Board of India (SEBI) has not included any stock in the ban list for Futures and Options (F&O) trading.

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, 18560 to 18640 is the Nifty 50 trading range.

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