Bullish Nifty50 Trend Sustains Above Near-Term Moving Average

At the close, the Nifty 50 was at 19,439.40 up by 0.43%

In a continuation of the prevailing consolidation trend, the markets showcased upward movement in a session marked by volatility. The first half of the trading day exuded optimism, instilling a sense of positivity among investors. However, as the Nifty index embarked on its quest to surpass the immediate hurdle at the record high, it encountered resistance and subsequently witnessed profit taking during the latter half. This ebb and flow of market dynamics exemplifies the nuanced nature of trading, where optimism and caution intertwine to shape the trajectory of financial assets.

NSE Nifty 50 commenced its trading session on a bullish note, witnessing a significant surge of 0.43 percent right from the start. Displaying resilience and vigor, it continued its upward trajectory, ultimately closing the day in the green. What’s more, the Nifty 50 triumphantly surpassed the 19,400 mark, solidifying its position as a force to be reckoned with in the market. This remarkable performance showcases the Nifty 50’s unwavering determination and underscores its potential for lucrative returns.

Bank Nifty: Down by 0.26%

As the trading day unfolded, the Bank Nifty made its entrance in the market with a promising green opening, but unfortunately experienced a downturn of 0.26 percent before eventually closing in the red at 44,745.05. Conversely, the BSE Sensex showcased its unwavering strength and determination, surging ahead by an impressive 0.42 percent. It concluded the day on a positive note, closing in the green with a remarkable high of 65,617.84. These contrasting performances highlight the dynamic nature of the market, with each index navigating its own unique path.

As the market enters a period of eager anticipation, all eyes turn towards the imminent arrival of the Q1 results, particularly in the IT sector. Tomorrow marks the beginning of this crucial phase, where expectations are currently muted but undeniably significant. Investors and industry experts alike are closely monitoring the performance of companies, placing a particular emphasis on the sustenance of margins and the potential for improvements in long-term guidance. These key factors will play a vital role in shaping market sentiment and guiding investment decisions in the days to come.

The prevailing optimism in the market finds its roots in multiple factors. Firstly, there is anticipation surrounding China’s planned stimulus measures aimed at bolstering economic growth. This move is expected to provide a significant boost to market sentiments. Additionally, investors are hopeful for a moderation in US inflation data, which further adds to the positive sentiment in the market.

Furthermore, when considering the overall valuation of India, it is worth noting that it currently stands marginally above the long-term average. However, this valuation is deemed fair, primarily due to the strong earnings expectations projected for FY24. These robust earnings forecasts contribute to the favorable outlook for Indian markets and provide further support for the prevailing optimism.

Bank Nifty

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

The gainers included IDFC First Bank with a 4.73% increase, Federal Bank with a 0.93% increase, IndusInd Bank with a 0.91% increase, Bank of Baroda with a 0.66% increase, and AU Bank with a 0.03% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 2.60% decline, Axis Bank with a 1.00% decline, State Bank of India with a 0.55% decline, HDFC Bank with a 0.39% decline, and Punjab National Bank with a 0.33% decline. These results suggest that some banking stocks performed better for the day.

Buzz

On Tuesday, gold prices surged to nearly three-week highs, propelled by a weakened dollar. This upward momentum was accompanied by a strategic positioning of investors, who keenly awaited the release of U.S. inflation data. The outcome of this data is expected to have a significant impact on the Federal Reserve’s decisions regarding the path of future interest rate hikes. Amidst these market dynamics, gold continues to shine as a favored asset, attracting attention from investors seeking stability and a hedge against potential inflationary pressures.

At 1011 GMT, spot gold demonstrated its strength, rising by 0.7% to reach $1,937.70 per ounce. This remarkable upward trajectory positions it for a third consecutive session of gains, underscoring its resilience in the market. Similarly, U.S. gold futures mirrored this positive sentiment, climbing 0.7% to reach $1,943.60.

The response to US inflation data rests upon the pace at which it decelerates. Should inflation unexpectedly slow down, gold could experience favorable outcomes. This outcome would signal a potential acceleration in the conclusion of the Federal Reserve’s hiking cycle. As a result, gold could benefit, as it tends to thrive in an environment where inflation surprises on the downside, leading to expectations of an earlier end to the Fed’s tightening measures.

Buzzing

Eicher Motors Ltd. experienced a notable rise in its share price, increasing by 2.78% from its previous close of Rs 3,173.90. The stock’s last traded price stands at 3,262.00, highlighting the upward momentum it has achieved. Furthermore, when considering the company’s performance over a three-year period, it has delivered a commendable return of 63.2%, although slightly lower than the Nifty 100’s return of 76.14%. Additionally, Eicher Motors Ltd. has showcased an impressive annual revenue growth rate of 40.03%, outperforming its three-year compound annual growth rate (CAGR) of 15.58%. These indicators reflect the company’s strong performance and potential for continued success in the market.

UPL Ltd. witnessed a decline in its share price, experiencing a decrease of -2.30% from its previous close of Rs 660.10. The stock’s last traded price stands at 644.90, highlighting the downward movement it has encountered. Furthermore, when comparing its three-year return of 51.23% to the Nifty 100’s return of 76.14%, UPL Ltd. has demonstrated relatively lower performance. This recent market behavior indicates the need for careful analysis and monitoring of the company’s future performance to understand its potential for recovery and growth.

In the sectorial landscape, the Auto sector experienced significant gains, rising by 1.39%. Among the key players in this sector, TVS MOTOR COMPANY LIMITED showcased an impressive gain of 2.96%, while EICHER MOTORS LIMITED followed closely with a gain of 2.78%. On the other hand, the Financial Services sector encountered a setback, losing ground by 0.44%. Notably, CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED experienced a decline of -1.68%, while BAJAJ FINANCE LIMITED saw a decrease of -1.20%. 

Advance Decline Ratio

Today, the advance-decline ratio was 1.23, and the market breadth was positive. The volatility index India Vix decreased by 3.92 percent to settle at 11.01 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 5861
Decliners – 4751
52Wk High –  127
52Wk Low – 19
High Band Hitters – 71
Low Band Hitters – 36
200d SMA – 18009
50d SMA – 18635
20d SMA – 19013

Top Gainers and Losers Stocks

The top gainers were Eicher Motors (+2.78%), Sun Pharmaceutical (+2.77%), Tata Consumer (+2.04%), Apollo Hospitals (+1.81%), and Maruti (+1.68%).

The top losers were UPL (-2.30%), Bajaj Finance (-1.20%), Axis Bank (-1.00%), JSW Steel (-0.95%), and HCL Technologies (-0.95%).

Top Gainers and Losers Sector

The top gainers sectors were Auto (+1.39%), Consumer Durables (+1.31%), FMCG (+1.23%), Pharma (+1.04%), and Oil & Gas (+0.94%).

The top losers sectors were Financial Services (-0.44%), Metal (-0.25%), and Realty (-0.01%).

The Nifty Midcap 50 was up by 1.06 percent, while the Nifty Small Cap 50 was up by 1.33 percent on the day.

The Nifty Midcap 50 index currently closed at 10,249.25, while the Nifty Small Cap 50 index currently closed at 5,086.75.

SECTORS – NOTABLE ACTION
AUTO +1.39%
CONSUMER DURABLES +1.31%
FMCG +1.23%
FINANCIAL SERVICES -0.44%
METAL -0.25%
REALTY -0.01%

Stocks Ban List

(SEBI) F&O ban list  (PNB open at -60.75 and close at -60.45), (DELTACORP open at +241.95 and close at +246.70), (IBULHSGFIN open at -126.55 and close at -123.65), (ZEEL open at +204.00 and close at +202.00), (INDIACEM open at -206.05 and close at +208.75), (GRANULES open at -311.90 and close at -309.95), and (BHEL open at -91.70 and close at +93.95) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned PNB, DELTACORP, IBULHSGFIN, ZEEL, INDIACEM, GRANULES and BHEL from trading in the futures and options (F&O) segment of 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.

L&TFH, MANAPPURAM, HINDCOPPER, BALRAMCHIN, RBLBANK, and LICHSGFIN are stock that are potentially facing the possibility of being included in the ban list.

Daily Pivots

As per the above pivots data, 19380 to 19510 is the Nifty 50 trading range.

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