Closing Strong Benchmark Indices Settle Near Day’s High Amidst Weak Global Cues

At the close, the Nifty 50 was at 20,855.10 up by 0.81%

The NSE Nifty 50 continued its impressive streak, initiating the day with a commendable 0.81% gain and concluding at a high surpassing the 20800 mark. This sustained surge over six consecutive sessions underscores an unprecedented rally, reinforcing a positive trajectory for the market.

Amid global caution surrounding imminent US job data, India’s domestic market soared to new heights. Robust buying across heavyweight sectors propelled the Nifty to unprecedented peaks, showcasing investor confidence in India’s growth prospects. Key sectors such as power, oil & gas, and banking displayed substantial gains, significantly contributing to the market’s upward momentum.

The recent electoral successes of the ruling party further invigorated investor sentiment, fortifying faith in India’s growth narrative and bolstering the prevailing bullish market sentiment. This optimistic outlook was reinforced by positive indicators including earnings surpassing expectations, robust GDP growth figures, and the anticipated resurgence of Foreign Institutional Investor (FII) inflows into the Indian market.

While the RBI is anticipated to maintain status quo in its forthcoming monetary policy meeting, investors are closely monitoring the central bank’s commentary on economic growth, foodgrain prices, and inflation trends. These factors wield considerable influence in shaping market sentiment and formulating future investment strategies amid the ongoing market upsurge.

Bank Nifty: Up by 1.25%

The Bank Nifty set a positive tone, initiating trading on a high note and sustaining a robust performance throughout the session. Closing with a notable surge of 1.25% at 47,012.25, it reflected a bullish sentiment, projecting a favorable outlook for the banking sector. Simultaneously, the BSE Sensex exhibited strength, rising by 0.63% and concluding at a high of 69,296.14, demonstrating resilience and upward momentum in the broader market.

Within sectors, the metal industry notably surged by an impressive 3.07%. Adani Enterprises Ltd. led this surge with exceptional growth, soaring by an impressive 17.38%, while Welspun Corp Ltd. also showed a substantial uptick of 5.53%. Conversely, the media sector faced a downturn, experiencing a decline of 0.58%. Sun Tv Network Ltd. encountered a notable loss of -1.87%, paralleled by Pvr Inox Ltd., which faced a downturn with a loss of -1.65%.

Foreign Institutional Investors (FIIs/FPIs) showcased strong buying activity, with a buy value of 17,190.73 crore rupees and sales valued at 11,967.22 crore rupees, resulting in a net value of 5,223.51 crore rupees. Conversely, Domestic Institutional Investors (DIIs) exhibited a contrasting trend, with a buy value of 11,467.11 crore rupees and sales valued at 12,866.29 crore rupees, leading to a net value of -1,399.18 crore rupees.

Bank Nifty

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

The gainers included IDFC First Bank with a 2.99% increase, State Bank of India with a 2.28% increase, ICICI Bank with a 2.00% increase, Federal Bank with a 1.66% increase, and Bandhan Bank with a 1.45% increase. On the other hand, the biggest losers in the sector included IndusInd Bank with a 0.64% decline. These results suggest that banking stocks performed better for the day.

Buzz

Rupee Remains Steady Against Dollar Amid RBI Interventions

The Indian rupee concluded Tuesday’s trading session with marginal fluctuations against the US dollar, settling at 83.38, nearly unchanged from the previous close of 83.37. The stability of the rupee was maintained despite local demand for the dollar, as the central bank, the Reserve Bank of India (RBI), intervened, selling dollars at the commencement of the spot trading session and intermittently throughout the day.

Notably, importers, particularly local oil marketing companies, were observed actively bidding for dollars on Tuesday, contributing to the demand for the greenback in the market. Despite the prevailing bias favoring rupee depreciation, the interventionist stance adopted by the RBI is anticipated to mitigate the steepness of the fall, acting as a stabilizing force in the forex market.

In related news, Brent crude futures, the global oil benchmark, experienced an uptick of 0.95%, reaching $78.77 per barrel. This increase in crude oil prices could potentially impact the rupee-dollar dynamics, given India’s substantial dependence on oil imports, thereby influencing the country’s trade balance and foreign exchange reserves.

The rupee’s resilience against the dollar amidst RBI interventions reflects a delicate balance influenced by both domestic demand dynamics and global market trends, particularly in the context of fluctuating oil prices that often exert pressure on India’s external trade position.

Buzzing

Adani Enterprises Ltd. Shows Strong Momentum with Bullish Signals

Adani Enterprises Ltd. witnessed a remarkable surge in its share price, soaring by 17.38% from its previous close of Rs 2,531.20 to a last traded price of 2,971.00. The recent bullish signals indicate favorable market conditions for potential investors. The weekly stochastic crossover, observed in the week ending Dec 01, 2023, presents a buy signal, historically resulting in an average price gain of 12.57% within 7 weeks over the last decade. Additionally, the 200-day moving crossover, detected recently, exhibits another buy signal with an average price gain of 9.8% within 30 days over the last five years. Notably, historical data indicates that only 4.78% of trading sessions in the past 19 years saw intraday gains higher than 5%, signaling a consistent yet controlled market performance.

LTIMindtree Ltd. Displays Resilience Amid Market Volatility

In contrast, LTIMindtree Ltd. experienced a marginal decline of -1.53% from its previous close of Rs 5,577.40, with the last traded price recorded at 5,492.05. Despite this dip, the company showcases resilience, as only 1.47% of trading sessions in the last seven years saw intraday gains higher than 5%, indicating a relatively stable market presence. Furthermore, the fiscal year of 2023 presented impressive financial figures, revealing significant growth in total assets by 88.43%, totaling $23,496.10. Concurrently, total liabilities surged by 89.01% to $6,896.90, with total equity showing an 88.19% growth, amounting to $16,599.20. These robust statistics underscore LTIMindtree Ltd.’s financial stability and substantial advancements over the past year, positioning it as a resilient entity amid market fluctuations.

Advance Decline Ratio

Today, the advance-decline ratio was 0.86, and the market breadth was negative. The volatility index India Vix increased by 3.57 percent to settle at 13.46 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1144
Decliners – 1336
52Wk High –  208
52Wk Low – 11
High Band Hitters – 106
Low Band Hitters – 47
200d SMA – 18837
50d SMA – 19623
20d SMA – 19826

Top Gainers and Losers Stocks

The top gainers were Adani Enterprises (+17.38%), Adani Ports (+14.95%), Power Grid (+4.77%), NTPC (+4.18%), and SBIN (+2.28%).

The top losers were LTIM (-1.53%), Hindustan Unilever (-1.51%), Divi’s Laboratories (-1.43%), HCL Technologies (-1.36%), and Bajaj Auto (-1.01%).

Top Gainers and Losers Sector

The top gainers sector were Metal (+3.07%), Oil & Gas (+1.41%), Consumer Durables (+0.93%), Financial Services (+0.92%), and Auto (+0.59%).

The top losers sector were Media (-0.58%), IT (-0.57%), Realty (-0.46%), and FMCG (-0.23%).

SECTORS – NOTABLE ACTION
METAL +3.07%
OIL & GAS +1.41%
CONSUMER DURABLES +0.93%
MEDIA -0.58%
IT -0.57%
REALTY -0.46%

Stocks Ban List

(SEBI) F&O ban list (INDIACEM open at -254.45 and close at +254.20), (DELTACORP open at -141.50 and close at -139.65), (IBULHSGFIN open at -200.00 and close at -197.00), and (ZEEL open at -257.00 and close at -251.70) 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.

HINDCOPPER, SAIL, and MANAPPURAM stocks has the possibilities of enterance in the ban list.

Daily Pivots

As per the above pivots data, 20730 to 20950 is the Nifty 50 trading range.

Read previous -Daily Insights- here
BJP’s Election Win Fuels Nifty’s Rally to New Heights
Accent Microcell Limited IPO (Accent Microcell IPO)
Sheetal Universal Limited IPO (Sheetal Universal IPO)

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