Domestic Markets Surge Positive GDP & Manufacturing PMI

At the close, the Nifty 50 was at 19,435.30 up by 0.94%

In the dynamic world of finance, the global markets’ positive opening injected renewed optimism into investor sentiment. This sentiment was further bolstered by the reassuring alignment of US PCE inflation with expectations, calming concerns about potential economic disruptions.

Today, the NSE Nifty 50 displayed a strong start, surging by 0.94% and closing in the green, with the index reaching above the crucial 19400 mark. This robust performance can be attributed to a combination of favorable global cues, a domestic manufacturing PMI that exceeded expectations, and encouraging GDP growth data.

Internationally, world stocks remained stable on Friday, as investors analyzed China’s latest economic stimulus measures aimed at shoring up its economy. Attention also turned to the forthcoming US jobs data, with hopes that the Federal Reserve may opt for a pause in its policy adjustments this month.

The recent decline in US Treasury yields had a notable impact on the dollar, which appeared set to end a six-week winning streak. This development coincided with anticipation building around the pivotal US non-farm payrolls figures, which are closely watched for their potential influence on market dynamics.

Bank Nifty: Up by 1.02%

In the financial markets, recent trends have shown positive momentum. The Bank Nifty exhibited a strong start, opening in the green and recording a notable gain of 1.02%, ultimately closing at 44,436.10 in positive territory. Likewise, the BSE Sensex experienced gains, rising by 0.86% and ending the trading session on a high note, reaching 65,387.16.

Significant movements in the sectorial front, the Metal sector has shown a notable gain of 2.88%. Within this sector, Steel Authority Of India Ltd. has demonstrated impressive growth, surging by 7.00%, while NMDC Ltd. has also performed well, gaining by 6.18%.

Conversely, the Pharmaceutical sector has faced some challenges, emerging as the top loser with a decline of 0.56%. In this sector, Torrent Pharmaceuticals Ltd. experienced a substantial loss, plummeting by -3.06%, while Abbott India Ltd. also incurred losses, with a decrease of -1.77%.

Bank Nifty

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

The gainers included Punjab National Bank with a 4.05% increase, IndusInd Bank with a 2.67% increase, Bandhan Bank with a 2.42% increase, Bank of Baroda with a 1.92% increase, and Axis Bank with a 1.69% increase. On the other hand, the biggest losers in the sector included Federal Bank with a 0.31% decline, and IDFC First Bank with a 0.16% decline. These results suggest that some banking stocks not performed better for the day.

Buzz

The trading session for the rupee commenced on a positive note, with an initial gain of 0.12 rupees, bringing it to approximately 82.60 against the dollar. This upturn can be attributed to the weakening of the dollar index, notably encountering selling pressure near the $104 threshold. The dollar’s decline has provided support to other currencies, including the rupee.

Market participants are maintaining a vigilant stance, closely awaiting the release of the Nonfarm Payrolls (NFP) data and unemployment statistics scheduled for the evening. These data points are of significant importance as they offer valuable insights to the Federal Reserve, influencing decisions related to the trajectory of interest rates. The outcomes will play a pivotal role in determining whether the Fed continues its rate hikes or opts for a pause in the interest rate cycle.

Notably, the rupee has been trading within a range of 82.40 to 82.85, signaling a degree of volatility within the currency markets. This range underscores the importance of monitoring economic indicators and global events that can sway currency valuations in this dynamic financial landscape.

Buzzing

NTPC Ltd. has displayed a notable increase in its share price, rising by 5.02% from its previous close of Rs 220.30 to reach a last traded price of Rs 231.35.

For investors, the long-term prospects of NTPC Ltd. have been promising, as evidenced by its 3-year return of 119.14%, which significantly outperformed the Nifty 100’s return of 67.95% over the same period. This suggests that NTPC Ltd. has delivered substantial value to its shareholders. Furthermore, the company’s annual revenue growth of 31.84% is impressive, surpassing its 3-year Compound Annual Growth Rate (CAGR) of 16.39%.

Moreover, NTPC Ltd. has demonstrated remarkable stability in its trading sessions over the last 18 years, with only 1.02% of sessions witnessing intraday declines exceeding 5%.

Cipla Ltd. has witnessed a slight decrease in its share price, declining by -1.01% from its previous close of Rs 1,257.60 to a last traded price of Rs 1,244.95. Over the past 3 years, Cipla Ltd. has delivered a return of 66.85%, outperforming the Nifty Pharma index, which provided investors with a return of 36.51% during the same period.

However, when compared to the broader market represented by Nifty 100, Cipla’s 3-year return of 66.85% is slightly below the index’s return of 67.95%, suggesting that while the stock has performed well within its sector, it has not significantly outpaced the overall market. In terms of intraday trading, Cipla Ltd. has maintained a remarkable level of stability, with only 0.91% of trading sessions experiencing intraday gains exceeding 5%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.57, and the market breadth was positive. The volatility index India Vix decreased by 5.78 percent to settle at 11.37 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1452
Decliners – 927
52Wk High –  184
52Wk Low – 12
High Band Hitters – 85
Low Band Hitters – 30
200d SMA – 18374
50d SMA – 19430
20d SMA – 19422

Top Gainers and Losers Stocks

The top gainers were NTPC (+5.02%), Jio Financial (+4.99%), ONGC (+4.05%), JSW Steel (+3.51%), and Tata Steel (+3.17%).

The top losers were Cipla (-1.01%), HDFC Life (-0.58%), Dr. Reddy (-0.56%), Nestle India (-0.35%), and UltraTech Cement (-0.33%).

Top Gainers and Losers Sector

The top gainers sectors were Metal (+2.88%), Auto (+1.65%), Oil & Gas (+1.56%), IT (+1.12%), and Realty (+0.94%).

The top losers sectors were Pharma (-0.56%).

The Nifty Midcap 50 was up by 0.70 percent, while the Nifty Small Cap 50 was up by 1.61 percent on the day.

The Nifty Midcap 50 index currently closed at 11,260.60, while the Nifty Small Cap 50 index currently closed at 5,709.70.

SECTORS – NOTABLE ACTION
METAL +2.88%
AUTO +1.65%
OIL & GAS +1.56%
PHARMA -0.56%

Stocks Ban List

(SEBI) F&O ban list  (IBULHSGFIN open at +200.00 and close at -197.10), and (BHEL open at +122.00 and close at +136.15) 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.

ZEEL, BALRAMCHIN, INDIACEM, PEL, PNB, INDUSTOWER, and SAIL stocks has the possibilities of enterance in the ban list.

Daily Pivots

As per the above pivots data, 19300 to 19520 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Monthly Expiry Day Sees Volatile Markets, 0.5% Loss
Bearish Counterattack Candle Pattern Emerges in Nifty
Stagnant Markets Consecutive Unchanged Sessions
Market Gains Marginally Amid Volatility & Positive Global Cues

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