Domestic Equity Indices Overcome Weak Start to Surge Higher

At the close, the Nifty 50 was at 22,597.80 up by 0.31%

The NSE Nifty 50 kicked off the day with a 0.31% boost, maintaining its upward momentum to close in the green. The index wrapped up just shy of the 22,600 mark, showcasing its resilience amidst market fluctuations.

Wednesday saw a remarkable recovery for domestic equity indices. After a sluggish start, the market rebounded to end on a positive note. Despite initial volatility, Indian equities navigated a narrow range, ultimately concluding the day with gains.

The Indian benchmark indices, driven by a late surge in heavyweight stocks, closed the day with gains. Nifty reclaimed the 22,600 level, rising by 0.31% to settle at 22,597.80 points. The midcap segment also displayed strength, ending in the green, while small caps experienced slight declines.

Although the markets faced volatility, they managed to hold onto modest gains. Nifty fluctuated within a narrow range before closing at 22,586. The index’s recovery was driven by robust performances across all key sectors, although the banking sector’s subdued performance restrained overall momentum.

Nifty’s bullish trend continues, finding stability around 22,500 and progressing within an ascending channel. Despite mixed global market sentiments ahead of the US FED minutes, Indian markets showed subtle positivity. Investors remain optimistic about stable Q4 earnings and easing election concerns, with increased interest in the FMCG sector due to expectations of an early monsoon.

However, short-term market performance may be subdued as investors await election outcomes, with Foreign Institutional Investors (FIIs) adopting a cautious stance. Despite these uncertainties, the overall sentiment remains cautiously optimistic, driven by positive domestic cues and sector-specific developments.

Bank Nifty: Down by 0.55%

The Bank Nifty commenced trading in the red, experiencing a decline of 0.55% throughout the session, ultimately closing at 47,781.95 in negative territory. Conversely, the BSE Sensex witnessed contrasting fortunes, registering a 0.36% increase and concluding in the green, reaching a high of 74,221.06.

In the sectorial front, the Fast-Moving Consumer Goods (FMCG) sector demonstrated notable performance, registering a significant increase of 1.43%. Within this sector, Dabur India Ltd. surged by an impressive 2.79%, showcasing strong investor confidence. Similarly, Procter & Gamble Hygiene and Health Care Ltd. also saw a substantial rise, gaining 2.74%.

Conversely, the Metal sector emerged as the top loser, experiencing a decline of 0.62%. Hindustan Copper Ltd. faced the steepest drop, falling by 3.73%. Following closely, Steel Authority of India Ltd. (SAIL) also recorded a significant decrease, losing 3.21%.

Foreign Institutional Investors (FII/FPI) recording a net selling value of Rs. 686.04 crore. Their buying value stood at Rs. 16,061.42 crore, while selling value amounted to Rs. 16,747.46 crore.

On the other hand, Domestic Institutional Investors (DII) exhibited a net buying value of Rs. 961.91 crore. DIIs purchased stocks worth Rs. 13,486.33 crore and sold shares worth Rs. 12,524.42 crore during the trading session.

Bank Nifty

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

The gainers included IndusInd Bank with a 0.39% increase, HDFC Bank with a 0.34% increase, State Bank of India with a 0.22% increase, and Kotak Bank with a 0.10% increase.

On the other hand, the biggest losers in the sector included AU Bank with a 1.75% decline, Bank of Baroda with a 0.70% decline, ICICI Bank with a 0.56% decline, Axis Bank with a 0.55% decline, and IDFC First Bank with a 0.45% decline. These results suggest that some of the banking stocks not performed better for the day.

Rupee Appreciates Amid Lower Crude Oil Prices

The Indian rupee appreciated by 3 paise, closing at 83.28 against the US dollar on Wednesday, driven by softening crude oil prices. The local currency traded within a narrow range due to foreign fund outflows. At the interbank foreign exchange, the rupee opened at 83.29 and fluctuated between 83.22 and 83.29 against the greenback, ultimately settling at 83.28.

The rupee’s gain was supported by positive domestic market conditions and a decline in crude oil prices. However, mixed signals from the US dollar and Foreign Institutional Investors (FII) outflows limited significant appreciation. The dollar index, which measures the greenback against six major currencies, rose by 0.09% to 104.75. This increase came as Federal Reserve officials expressed caution about cutting interest rates prematurely, indicating the need for more economic data before making such decisions.

Brent crude futures, the global oil benchmark, decreased by 0.69%, settling at $82.31 per barrel. The drop in oil prices provided some relief to the rupee, as lower crude prices reduce India’s import bill, positively impacting the domestic currency.

The rupee’s modest appreciation reflects a combination of domestic market optimism and declining crude oil prices. However, persistent FII outflows and a strong US dollar continue to exert pressure. Investors and market watchers should keep an eye on global economic indicators and oil price trends, which will likely influence the rupee’s future movements.

Stocks Highlights

Cipla Ltd. Shares Surge

Cipla Ltd. witnessed a notable increase in its share price, rising by 2.79% from its previous close of Rs 1,442.30 to Rs 1,482.50. Analyzing intraday trends over the past 19 years, only 0.87% of trading sessions recorded gains exceeding 5%. Additionally, Cipla’s Return on Equity (ROE) for the fiscal year ending March 31, 2024, was 15.43%, surpassing its five-year average of 11.98%. However, the company’s quarterly revenue declined by 5.54%, marking the lowest drop in three years. A recent 50-day moving average crossover signals a potential upward trend, with an average price gain of 4.06% within 30 days historically.

Shriram Finance Ltd. Stock Declines

Shriram Finance Ltd. saw its share price decrease by 1.53%, from Rs 2,373.25 to Rs 2,337.00. Over the last 19 years, only 3.39% of trading sessions achieved intraday gains above 5%. The company allocated 42.67% of its operating revenues to interest expenses and 9.54% to employee costs for the fiscal year ending March 31, 2024. Despite this decline, Shriram Finance delivered a three-year return of 60.49%, outperforming the Nifty 100’s 52.97% return and Nifty Financial Services’ 31.2% return over the same period.

Advance Decline Ratio

Today, the advance-decline ratio was 0.96, and the market breadth was negative. The volatility index India Vix decreased by 1.57 percent to settle at 21.47 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1257
Decliners – 1313
52Wk High – 145
52Wk Low – 17
High Band Hitters – 130
Low Band Hitters – 71
200d SMA – 20938
50d SMA – 22320
20d SMA – 22386

Top Gainers and Losers Stocks

The top gainers were Cipla (+2.79%), Tata Consumer (+2.51%), Hindustan Unilever (+2.39%), Coal India (+2.28%), and Reliance (+1.70%).

The top losers were Shriram Finance (-1.53%), Apollo Hospitals (-1.32%), Hindalco (-1.17%), Hero MotoCorp (-1.12%), and HDFC Life (-0.86%).

Top Gainers and Losers Sectors

The top gainers sector were FMCG (+1.43%), Realty (+1.41%), Media (+0.73%), IT (+0.70%), and Pharma (+0.58%).

The top losers sector were Metal (-0.62%), Financial Services (-0.52%), Consumer Durables (-0.17%), and Auto (-0.13%).

SECTORS – NOTABLE ACTION
FMCG +1.43%
REALTY +1.41%
MEDIA +0.73%
METAL -0.62%
FINANCIAL SERVICES -0.52%
CONSUMER DURABLES -0.17%

Stocks Ban List

(SEBI) F&O ban list (IEX open at +161.55 and close at -154.50), (NATIONALUM open at +202.00 and close at -197.50), (PNB open at +127.00 and close at -125.85), (BANDHANBNK open at +184.90 and close at -183.50), (PEL open at -824.80 and close at -817.05), (INDIACEM open at -210.55 and close at -208.30), (ABCAPITAL open at +226.50 and close at -223.35), (ZEEL open at +149.30 and close at +151.25), (BALRAMCHIN open at -380.00 and close at -376.50), (BIOCON open at +310.50 and close at +307.95), (IDEA open at +13.65 and close at -13.50), (GRANULES open at +420.15 and close at +426.80), and (GMRINFRA open at -85.95 and close at +87.50) 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.

IDFCFIRSTB, CANBK, ABFRL, GNFC, METROPOLIS, TATACHEM, CHAMBLFERT, and BHEL stocks has the possibilities of entrance in the ban list.

BALRAMCHIN, BIOCON, IDEA, GRANULES, and GMRINFRA stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 22450 to 22750 is the Nifty 50 trading range.

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