February’s Nifty50 Index Performance: 1% Monthly Gain and 3% Expiry Surge

At the close, the Nifty 50 was at 21,982.80 up by 0.14%

The NSE Nifty 50 index showed remarkable resilience on February’s Futures and Options (F&O) expiry day, overcoming early losses to end the session in positive territory. Starting with slight declines, the index managed to surpass the 21,950 mark, closing at around 22,000 levels, marking a modest gain of 0.14%.

Market Volatility and Global Trends The day witnessed significant volatility, echoing trends seen in Asian markets. Investors kept a close eye on crucial economic data releases both in the U.S. and domestically. Despite a lacklustre trading atmosphere and mixed movements in heavyweight stocks, broader indices defied expectations and closed higher.

While some sectors, notably media and IT, experienced minor setbacks, broader indices countered these declines, finishing positively. Investor sentiment remained cautious, especially ahead of key data releases such as India’s Q3 GDP and the US personal consumption expenditure (PCE) price index.

Anticipation and Late Surge The anticipation surrounding these data points, coupled with China’s PMI index release, contributed to a wait-and-watch approach among investors. Despite prevailing negative sentiment, the Nifty exhibited a late surge during the final trading hour, indicating market resilience and the potential for future developments to influence sentiment and market dynamics.

Bank Nifty: Up by 0.34%

In today’s trading session, the Bank Nifty and BSE Sensex demonstrated remarkable resilience despite an initial dip in the market. The Bank Nifty, after opening in the red, gained momentum to close in the green, boasting a notable increase of 0.34% at 46,120.90. Similarly, the BSE Sensex exhibited positive movement, rising by 0.27% and concluding the session at a high of 72,500.30.

Investor Confidence and Market Strength

Despite early market jitters, both indices showcased unwavering resilience and upward momentum, reflecting investor confidence in the banking and overall market sectors. These positive movements underscore the underlying strength of the Indian financial markets amidst ongoing economic and geopolitical uncertainties.

Sectorial Performance Highlights

In the sectorial front, the metal sector emerged as a standout performer, registering significant gains of 0.91%. Hindustan Copper Ltd. saw a substantial uptick of 6.44%, while Apl Apollo Tubes Ltd. also displayed strong performance with a notable gain of 5.82%. Conversely, the media sector experienced a downturn, witnessing a decrease of 0.91%. Network18 Media & Investments Ltd. encountered a notable decline of -4.97%, alongside TV18 Broadcast Ltd., which saw a decrease of -4.95%.

Institutional Activity

Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs) remained actively engaged in the Indian market, with a buy value of Rs. 54,592.29 crore and a sale value of Rs. 51,024.18 crore, resulting in a net value of Rs. 3,568.11 crore. Meanwhile, Domestic Institutional Investors (DIIs) conducted trading activities with a buy value of Rs. 11,405.24 crore and a sale value of Rs. 11,635.45 crore, leading to a net value of -Rs. 230.21 crore.

Bank Nifty

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

The gainers included IndusInd Bank with a 2.12% increase, Bank of Baroda with a 1.81% increase, Punjab National Bank with a 1.74% increase, State Bank of India with a 1.41% increase, and ICICI Bank with a 0.84% increase. On the other hand, the biggest losers in the sector included AU Bank with a 0.13% decline, HDFC Bank with a 0.11% decline, and Axis Bank with a 0.05% decline. These results suggest that some of the banking stocks performed better for the day.

Rupee Holds Steady Amidst Mixed Market Forces

The Indian rupee remained relatively stable on Thursday, settling at 82.91 (pro) against the US dollar. This resilience was supported by lower crude oil prices and a weaker greenback against major currencies globally. However, the rupee faced pressure from sustained foreign capital outflows.

The positive performance of equity markets provided some support to the domestic currency, offering a cushion against external pressures. Nonetheless, market participants exercised caution ahead of the release of domestic GDP data later in the day.

Starting at 82.88 against the greenback, the rupee fluctuated during the day, touching an intra-day low of 82.94 before finally settling at its previous day’s closing level of 82.91 (pro) against the dollar.

In the previous session, the rupee had settled marginally lower at 82.91 against the US dollar. Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, experienced a decline of 0.19%, reaching 103.78.

Furthermore, Brent crude futures, the global oil benchmark, witnessed a slight decline of 0.17%, reaching $83.54 per barrel. These factors collectively contributed to the nuanced movements observed in the currency markets, reflecting the intricate interplay between various economic indicators and external factors.

Stocks Highlights

Adani Enterprises Ltd. Shows Resilience Amidst Volatility

Adani Enterprises Ltd. witnessed a positive movement in its share price, rising by 2.51% from its previous close of Rs 3,219.00 to Rs 3,299.90. Notably, historical data reveals that only 3.89% of trading sessions in the last 19 years saw intraday declines higher than 5%. Despite recent fluctuations, the company’s annual revenue growth of 96.18% surpasses its 3-year CAGR of 45.79%, indicating robust performance.

However, a sell signal emerged with a 14-day moving crossover, suggesting a potential downturn. Historical analysis shows an average price decline of -3.3% within 7 days of this signal over the past 5 years. Additionally, Adani Enterprises allocated 2.9% of its operating revenues to interest expenses and 1.37% to employee costs in the fiscal year ending March 31, 2023.

Apollo Hospitals Enterprise Ltd. Faces Market Headwinds

In contrast, Apollo Hospitals Enterprise Ltd. experienced a decline in its share price, dropping by -3.81% from its previous close of Rs 6,362.35 to Rs 6,120.00. Despite a generally stable market, only 1.5% of trading sessions in the last 19 years witnessed intraday declines higher than 5%. Multiple sell signals, including both 20-day and 14-day moving crossovers, indicate bearish sentiment. Historical data suggests an average price decline of -2.64% and -2.56% within 7 days of these signals, respectively.

Furthermore, Apollo Hospitals Enterprise allocated 2.29% of its operating revenues to interest expenses and a significant 12.9% to employee costs in the fiscal year ending March 31, 2023, reflecting potential financial strains amidst market challenges.

Advance Decline Ratio

Today, the advance-decline ratio was 0.98, and the market breadth was negative. The volatility index India Vix decreased by 4.63 percent to settle at 15.57 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1242
Decliners – 1262
52Wk High –  58
52Wk Low – 32
High Band Hitters – 72
Low Band Hitters – 130
200d SMA – 20042
50d SMA – 21743
20d SMA – 21960

Top Gainers and Losers Stocks

The top gainers were Adani Enterprises (+2.51%), Adani Ports (+2.19%), IndusInd Bank (+2.12%), Tata Consumer (+2.06%), and Britannia (+1.89%).

The top losers were Apollo Hospitals (-3.81%), Bajaj Auto (-3.20%), LTIM (-1.66%), Eicher Motors (-1.65%), and UPL (-0.83%).

Top Gainers and Losers Sector

The top gainers sector were Metal (+0.91%), FMCG (+0.35%), Financial Services (+0.33%), Pharma (+0.32%), and Auto (+0.20%).

The top losers sector were Media (-0.91%), and IT (-0.06%).

SECTORS – NOTABLE ACTION
METAL +0.91%
FMCG +0.35%
FINANCIAL SERVICES +0.33%
MEDIA -0.91%
IT -0.06%

Stocks Ban List

(SEBI) F&O ban list (INDUSTOWER open at +244.00 and close at +252.80), and (SAIL open at -121.35 and close at -121.20) 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.

IDEA, GMRINFRA, PNB, BANDHANBNK, HINDCOPPER, TATACHEM, NMDC, and BIOCON stocks has the possibilities of entrance in the ban list.

INDUSTOWER, and SAIL stocks have the possibility of exit from the ban list.

Daily Pivots

As per the above pivots data, 21800 to 22150 is the Nifty 50 trading range.

Read previous -Daily Insights- here
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Indian Stock Market Shows Resilience Despite Global Volatility
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This article is only for educational purposes and is not an investment advice.