Energy and Bank Shares Drive Nifty to New Highs in Volatile Monday Trade

At the close, the Nifty 50 was at 22,405.60 up by 0.12%

The NSE Nifty 50 commenced trading on a positive note, displaying a marginal uptick of 0.12% and maintained its trajectory, closing in the green zone. Despite trimming opening gains, benchmark indices Nifty and Sensex concluded marginally higher on March 4, primarily driven by buying activities in energy and infrastructure sectors.

Market Dynamics and Sentiments Tracking the positive momentum from US and Asian markets, Nifty closed at 22,405.60, marking a 0.12% increase. The Indian equity market continued its upward trajectory, with Nifty50 scaling a fresh lifetime high amidst highly volatile trading sessions. Investors remained cautious, seeking decisive cues amidst market fluctuations.

Technical Analysis and Future Projections The trading session witnessed a consolidated move, leading to the formation of a Doji candle on the daily chart. Despite this, the overall sentiment remains bullish, with anticipation of a decisive break above 22,440, potentially intensifying the momentum towards 22,700 on the upside. Energy and bank shares contributed significantly to the rally, aligning with gains in Asian markets.

Global Factors Influencing Market Behavior However, weak global cues prompted a range-bound trading pattern, with investors focusing on stock-specific opportunities amidst prevailing caution on broader indices. Tepid consumption data discouraged investments in FMCG and discretionary stocks. Moreover, global sentiment remains cautious ahead of the FED chair testimony and ECB policy meetings later this week. With inflation surpassing target ranges, the FED is expected to maintain a hawkish stance on interest rates, closely monitoring unemployment and nonfarm payroll data for further cues. This cautious approach underscores the need for investors to stay vigilant amidst evolving market dynamics.

Bank Nifty: Up by 0.34%

On the trading front, the Bank Nifty showcased strength as it commenced trading in the green, marking an increase of 0.34%. This positive momentum persisted throughout the session, leading to a closing figure of 47,456.10, reflecting the sector’s resilience. Simultaneously, the BSE Sensex also demonstrated a commendable performance, with a modest increase of 0.09%. Closing at a high of 73,872.29, the Sensex maintained its upward trajectory amidst prevailing market conditions.

In the sectorial front, the energy sector showcased significant advancements, with Oil & Gas stocks surging by 1.87%. Notably, Oil India Ltd. saw an impressive gain of 5.77%, while Petronet LNG Ltd. experienced a notable uptick of 3.64%. Conversely, the media sector faced a downturn, registering a decline of 1.85%. TV18 Broadcast Ltd. observed a substantial loss of -5.01%, along with Network18 Media & Investments Ltd. trailing closely behind with a decline of -4.98%.

Foreign Institutional Investors (FII/FPI) displayed a net selling activity, with a buy value of Rs. 13,489.19 crore and a corresponding sale value of Rs. 14,053.25 crore. Consequently, the net value stood at a deficit of Rs. -564.06 crore (Rs. Cr.).

Contrarily, Domestic Institutional Investors (DII) demonstrated a contrasting trend, showcasing net buying activity. With a buy value of Rs. 11,963.11 crore and a sale value of Rs. 8,420.24 crore, the net value amounted to a surplus of Rs. 3,542.87 crore (Rs. Cr.).

Bank Nifty

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

The gainers included Axis Bank with a 0.78% increase, ICICI Bank with a 0.58% increase, Bank of Baroda with a 0.48% increase, IndusInd Bank with a 0.36% increase, and Federal Bank with a 0.26% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 1.05% decline, IDFC First Bank with a 0.79% decline, State Bank of India with a 0.25% decline. These results suggest that some of the banking stocks performed better for the day.

Rupee Strengthens Against US Dollar Amidst Market Dynamics

The Indian rupee demonstrated resilience, appreciating by 4 paise to 82.87 against the US dollar in early trade on Monday. This upward movement was attributed to the weakened American currency against major counterparts overseas, coupled with the influx of foreign investments into domestic capital markets.

Equity Market Positivity Boosts Rupee A positive sentiment pervaded the equity markets, providing further support to the rupee. However, the local currency faced downward pressure due to the upward trajectory of crude oil prices, dampening its gains to some extent.

Interbank Exchange Dynamics At the international interbank foreign exchange market, the rupee initiated trading at 82.86, slipping marginally to settle at 82.87 against the greenback, marking a 4-paise gain from its previous close. Despite minor fluctuations, the rupee maintained its upward momentum.

Key Market Movements Previously, the rupee concluded 2 paise lower at 82.91 against the US dollar. The recent appreciation can be attributed to the dollar’s decline against major currencies and was further bolstered by favorable GDP data within the domestic market.

Global Indicators Impacting Currency The dollar index, measuring the greenback’s strength against a basket of six currencies, saw a marginal decrease of 0.01%, resting at 103.79. Meanwhile, Brent crude futures, the global oil benchmark, experienced a slight uptick of 0.10%, reaching $83.63 per barrel. These global indicators contribute to the nuanced fluctuations in the rupee’s value against the US dollar, requiring investors to stay vigilant amidst evolving market dynamics.

Stocks Highlights

NTPC Ltd. witnessed a notable increase in share price, climbing by 3.69% to reach Rs 354.35 from its previous close of Rs 341.75. The company’s annual revenue growth of 31.84% has outpaced its 3-year Compound Annual Growth Rate (CAGR) of 16.39%, signaling robust performance. A bullish sentiment is evident with the appearance of a weekly stochastic crossover, indicating a favorable market outlook. Historical data indicates an average price gain of 6.95% within 7 weeks following such signals over the past decade. Moreover, the company has efficiently managed its expenses, allocating 6.33% towards interest expenses and 3.7% towards employee costs, bolstering its financial stability.

In contrast, Eicher Motors Ltd. experienced a decline in share price, dropping by -2.68% to Rs 3,756.90 from its previous close of Rs 3,860.35. Despite boasting an impressive annual revenue growth of 40.03%, surpassing its 3-year CAGR of 15.58%, the company faces sell signals as indicated by a weekly stochastic crossover. Historical data suggests an average price decline of -4.88% within 7 weeks following such signals over the past decade, signaling potential challenges ahead. Additionally, the company’s allocation of less than 1% towards interest expenses and 6.94% towards employee costs raises concerns about its financial management amidst market uncertainties. Investors are advised to exercise caution while considering investment options in light of these developments.

Advance Decline Ratio

Today, the advance-decline ratio was 0.51, and the market breadth was negative. The volatility index India Vix decreased by 0.46 percent to settle at 14.92 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 876
Decliners – 1711
52Wk High –  131
52Wk Low – 15
High Band Hitters – 104
Low Band Hitters – 118
200d SMA – 20104
50d SMA – 21810
20d SMA – 22038

Top Gainers and Losers Stocks

The top gainers were NTPC (+3.69%), HDFC Life (+2.82%), Power Grid (+2.70%), ONGC (+2.68%), and BPCL (+2.67%).

The top losers were Eicher Motors (-2.68%), JSW Steel (-2.24%), SBI Life (-2.06%), M&M (-1.74%), and Britannia (-1.68%).

Top Gainers and Losers Sector

The top gainers sector were Oil & Gas (+1.87%), Financial Services (+0.38%), Pharma (+0.29%), and Realty (+0.16%).

The top losers sector were Media (-1.85%), IT (-0.77%), Auto (-0.49%), FMCG (-0.45%), and Consumer Durables (-0.34%).

SECTORS – NOTABLE ACTION
OIL & GAS +1.87%
FINANCIAL SERVICES +0.38%
PHARMA +0.29%
MEDIA -1.85%
IT -0.77%
AUTO -0.49%

Stocks Ban List

(SEBI) F&O ban list (ZEEL open at -159.00 and close at -154.90) 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.

Daily Pivots

As per the above pivots data, 22300 to 22500 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Special Trading Session on March 2 NSE Nifty 50 Soars to New Heights in Benchmark Indices
Nifty Skyrockets to New Heights on Impressive GDP Figures
February’s Nifty50 Index Performance: 1% Monthly Gain and 3% Expiry Surge

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