Equity Benchmark Extends Gains with Positive Global Cues and Strong Q3 Results

At the close, the Nifty 50 was at 19,230.60 up by 0.51%

In the dynamic Indian stock market landscape, the NSE Nifty 50 index demonstrated impressive strength and resilience. Starting the day on a bullish note, it opened positively and achieved a notable 0.51 percent gain. Throughout the trading session, the Nifty 50 maintained its upward trajectory, ultimately closing above the 19,200 mark. This encouraging performance marked the second consecutive day of gains, instilling confidence in investors.

Several factors contributed to this strong showing. Positive global cues, robust September quarter results, and widespread buying across various sectors played significant roles in supporting the equity benchmark. Notably, the Nifty 50 reclaimed nearly 1 percent, breaking a two-week losing streak. The market remained relatively stable throughout the day, showcasing traders’ and investors’ confidence.

The buoyant Asian equities market also played a part in boosting local shares, despite some early gains being trimmed due to selective buying and concerns over inflation and West Asian conflicts. Gradually, investors are shedding their anxiety, as seen in the significant reduction of the Nifty VIX.

This renewed optimism is underpinned by strong global cues, stable macroeconomic data, and robust domestic corporate earnings. The ongoing Q2 results have revealed healthy expansion in Indian operating margins, leading to a substantial increase in earnings growth. As the Indian stock market continues to navigate global challenges, it remains resilient and offers potential for further growth and stability.

Bank Nifty: Up by 0.70%

The Indian stock market experienced a positive trend today, with both the Bank Nifty and the BSE Sensex showcasing notable gains. As the trading day commenced, the Bank Nifty opened in the green, displaying a promising upward momentum. By the time the trading session concluded, it had recorded a commendable increase of 0.70 percent, closing at an impressive 43,318.25.

Simultaneously, the BSE Sensex, the benchmark index for the Bombay Stock Exchange, demonstrated its resilience and strength. It began the trading day on a positive note, with a gain of 0.44 percent. This bullish momentum continued throughout the day, resulting in the BSE Sensex closing in the green at a high of 64,363.78.

In the real estate sector, there was a significant upswing with a 2.54% increase in value. Notably, Brigade Enterprises Ltd. excelled with a remarkable 7.06% gain, followed by Prestige Estates Projects Ltd. at 4.40% and Godrej Properties Ltd. at 3.96% growth.

Foreign Institutional Investors (FII/FPI) engaged in trading with a buy value of Rs. 7,739.00 crore, while their sale value amounted to Rs. 7,751.43 crore. This resulted in a net value of -Rs. 12.43 crore, indicating a slight deficit in their investment activity.

Conversely, Domestic Institutional Investors (DII) conducted transactions with a buy value of Rs. 7,932.73 crore, while their sale value reached Rs. 7,530.04 crore. This yielded a positive net value of Rs. 402.69 crore, reflecting a surplus in their investment activity.

Bank Nifty

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

The gainers included Bank of Baroda with a 1.55% increase, ICICI Bank with a 1.42% increase, Federal Bank with a 1.38% increase, State Bank of India with a 1.23% increase, and Bandhan Bank with a 1.12% increase. On the other hand, the biggest losers in the sector included IndusInd Bank with a 0.83% decline, and Kotak Bank with a 0.27% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Indian Rupee Edges Lower Amidst Local Dollar Demand

In contrast to its Asian counterparts, the Indian rupee faced slight depreciation on Friday, primarily due to sustained local demand for the US dollar, coupled with the absence of substantial inflows, exerting downward pressure on the currency’s value. The Reserve Bank of India’s potential US dollar sales provided some respite by preventing further losses.

The rupee concluded the trading day at 83.2850 against the US dollar, marginally weaker than its previous session close of 83.2425. Over the course of the week, the unit exhibited relatively muted fluctuations, indicating a degree of stability.

Conversely, other Asian currencies saw upward movements, benefiting from declining US Treasury yields and a softer dollar index. The Korean won emerged as the top performer among its Asian peers, rallying nearly 2 percent.

Throughout the week, the Indian rupee maintained a narrow trading range, oscillating between 83.18 and 83.2950, underscoring the stability within the currency market.

Additionally, Indian banks engaged in discussions with the Reserve Bank of India on Thursday, highlighting concerns about the lack of volatility in the currency market in recent weeks and its impact on their trading activities. These discussions reflect the intricacies of managing currency fluctuations in a dynamic financial landscape.

Buzzing

Apollo Hospitals Enterprise Ltd. witnessed a significant uptick in its share price, marking a 5.34% increase from the previous close, with the stock’s last traded price at Rs 5,148.00. Notably, several bullish signals have emerged for this company. A 10-day moving crossover occurred, indicating a potential uptrend, with an average price gain of 3.69% within 7 days of this signal in the last 5 years. Furthermore, a 200-day moving crossover appeared, suggesting a stronger bullish trend, with an average price gain of 4.82% within 30 days of this signal in the last 5 years. It’s worth noting that the company allocated 2.29% of its operating revenues to interest expenses and 12.9% to employee costs in the fiscal year ending on March 31, 2023.

In contrast, Bajaj Finserv Ltd. experienced a decrease of -2.83% in its share price from the previous close, with the stock’s last traded price at Rs 1,531.05. Despite this, a 5-day moving crossover signal emerged, indicating a potential bullish trend with an average price gain of 3.23% within 7 days of this signal over the last 5 years. Bajaj Finserv has shown robust annual revenue growth of 19.92%, surpassing its 3-year Compound Annual Growth Rate (CAGR) of 14.57%. The company’s financial allocation includes 14.87% of operating revenues dedicated to interest expenses and 10.68% to employee costs in the fiscal year ending on March 31, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 1.85, and the market breadth was positive. The volatility index India Vix decreased by 1.73 percent to settle at 10.88 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1572
Decliners – 850
52Wk High –  88
52Wk Low – 15
High Band Hitters – 145
Low Band Hitters – 29
200d SMA – 18642
50d SMA – 19561
20d SMA – 19424

Top Gainers and Losers Stocks

The top gainers were Apollo Hospitals (+5.34%), Adani Ports (+2.67%), Eicher Motors (+2.63%), Titan (+2.36%), and LTIM (+2.09%).

The top losers were Bajaj Finserv (-2.83%), SBI Life (-1.30%), Dr. Reddy (-1.25%), IndusInd Bank (-0.83%), and Bajaj Finance (-0.62%).

Top Gainers and Losers Sector

The top gainers sector were Realty (+2.54%), Media (+1.38%), Consumer Durables (+1.22%), Oil & Gas (+0.77%), and IT (+0.64%).

SECTORS – NOTABLE ACTION
REALTY +2.54%
MEDIA +1.38%
CONSUMER DURABLES +1.22%

Stocks Ban List

(SEBI) F&O ban list (GNFC open at +701.00 and close at -694.55) 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.

MANAPPURAM and INDIACEM stocks has the possibilities of enterance in the ban list.

Daily Pivots

As per the above pivots data, 19150 to 19290 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Fed’s Decision Sparks Market Rejoice, Nifty Surges Above 19,100
Market Opens Negative, Extends Losses Across Sectors
Volatile Session Ends on a Sour Note for Indian Benchmark Indices

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