IndexPriceChange% Chg
NIFTY 5015989.80178.95+1.13%
NIFTY BANK34324.25508.35+1.50%
BSE SENSEX53750.97616.62+1.16%
Daily closing price, change and % change of benchmark indices.

FII Buying Lifts Market

After a long time, the FIIs were net buyers today and FII buying lifted the market sentiments. The Nifty 50 closed at 15990, up 179 points or 1.13 percent. Furthermore, Nifty broke the 15800 level with a comfortable margin, which had been the biggest hurdle to pass. The market shrugged off inflation and growing interest rate concerns to conclude the day with significant gains.

Nobody knows whether today’s FII action is an outlier or why FIIs suddenly became net buyers today. And it remains to be seen how long they will continue to be net buyers. Though one rumor going around is that dropping commodity prices may benefit the corporate bottom line, and the market expects to see this in Q2 earnings. Surprisingly, only FIIs saw the benefits of lowering commodity prices!

Similarly, as noted earlier, the drop in oil and commodity prices undoubtedly helps to ease inflationary fears, but if the reduction in oil and commodity prices is because of concerns about economic slowdown, then it could also limit the current stock market rally. 

Further, the windfall tax imposed on oil companies last week continued to hurt ONGC, Oil India and Reliance Industries. Windfall tax on oil.

FII buying lifts Nifty 50
Nifty Daily data chart – out of 15800 level.

Today, the advance-decline ratio was 1.35, and the market breadth was positive. On the other hand, the volatility index India Vix marginally fell 2.50 percent to close at 20.27.

Advancers – 1219
Decliners 902
52Wk High
52Wk Low 30
High Band Hitters
Low Band Hitters 65
200d SMA 17136
50d SMA – 16140
20d SMA – 15742

Nifty Top Gainers and Losers – FII Buying?

The top gainers on the Nifty 50 were Bajaj Finance (+4.75%), Bajaj Finserv (+4.72%), Britannia (+4.69%), Hindustan Unilever (+4.31%), and Eicher Motors (+3.86%).

Meanwhile, the top losers in the Nifty 50 were ONGC (-4.83%), Power Grid (-1.24%), Hindalco (-1.01%), HDFC Life (-1.00%), and NTPC (-0.82%).

Sectors & Broader Indices

Except for oil & gas, all sectoral indices closed in the green. Today’s biggest gainers were in FMCG, Consumer Durables, Auto. Likewise, the broader indices followed the benchmarks. The Nifty Midcap 50 was up 2.18 percent, while the Nifty Small cap 50 was up 0.29 percent.

FMCG +2.64%
AUTO +2.60%
OIL & GAS -0.17%

Looking Ahead

The Nifty has closed above 15800 level barrier, which is positive for the overall trend. Further, for the last three trading sessions, the Nifty is closing above 20-day moving average price.

Daily Pivots

Daily Nifty Pivots

The Nifty trading range for tomorrow is 15850 to 16100.

Though, it’s early to call it trend reversal given the ongoing geo political concerns. At best, you can call it as a relief rally in the ongoing sideway consolidation phase.

Read previous -Daily Insights- here
Braking to go faster?
Bulls on a roll
Up, down and Up

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

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