Fresh Lifetime Highs for Indian Equity Indices Despite Domestic Inflation Concerns

At the close, the Nifty 50 was at 19,413.75 up by 0.15%

The Nifty index experienced a day of considerable volatility in today’s trading session. Initially, it displayed a positive start with a gap up opening and even surpassed the seven-day range on the upside. However, as the day unfolded, the index encountered selling pressure at higher levels, leading to a subsequent sell-off. Consequently, it retraced back within its previous range, signifying a failure in the breakout attempt. This development highlights the dynamic nature of the market and the challenges faced by the Nifty index in sustaining its upward momentum.

Nifty 50 index commenced on a positive note, opening at a higher level. It displayed a gain of 0.15 percent throughout the trading session and concluded with a bullish stance. Notably, the Nifty index surpassed the significant milestone of 19400, exhibiting an upward trend.

On the sectorial front, the Information Technology (IT) sector exhibited the highest gain of 1.75%. Within this sector, TATA CONSULTANCY SERVICES LIMITED recorded a notable gain of 2.60%, while COFORGE LIMITED experienced a gain of 2.43%. Conversely, the Media sector faced a decline of 1.88% today. Specifically, TV18 BROADCAST LIMITED observed a significant loss of -3.65%, and NAZARA TECHNOLOGIES LIMITED experienced a decline of -3.39%. These developments highlight the contrasting performance of different sectors in today’s market, with the IT sector leading in terms of gains and the Media sector witnessing losses.

Bank Nifty: Up by 0.06%

In today’s trading session, the Bank Nifty index displayed a favorable start as it opened in the positive territory. Throughout the day, it registered a gain of 0.06 percent and concluded with a bullish stance, closing at a notable level of 44,665.05. Furthermore, mirroring the positive market sentiment, the BSE Sensex, the benchmark index of the Bombay Stock Exchange (BSE), exhibited a rise of 0.25 percent and ended the day on a high note at 65,558.89, reaffirming the upward trajectory.

The domestic market rally witnessed today was fueled by strategic buying in the IT sector, characterized by contra bets. This surge in IT stock purchases was underpinned by factors such as stable profit margins, the emergence of new-generation business opportunities, and an enhanced pricing power resulting from the moderation in the value of the US dollar. Notably, the latest US inflation figures indicate a rapid approach towards the target levels set by the Federal Reserve (Fed).

Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) made significant purchases with a total value of 10,128.06 crore rupees. Simultaneously, they also made sales worth 7,890.13 crore rupees, resulting in a net value of 2,237.93 crore rupees. On the other hand, Domestic Institutional Investors (DII) engaged in transactions with a buy value of 8,229.67 crore rupees and a sale value of 9,426.35 crore rupees on the same date. Consequently, the DII witnessed a net value of -1,196.68 crore rupees.

Bank Nifty

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

The gainers included Axis Bank with a 1.29% increase, ICICI Bank with a 1.28% increase, HDFC Bank with a 0.71% increase, and IndusInd Bank with a 0.48% increase. On the other hand, the biggest losers in the sector included Federal Bank with a 5.40% decline, Bank of Baroda with a 3.64% decline, Punjab National Bank with a 3.34% decline, Bandhan Bank with a 2.89% decline, and IDFC First Bank with a 1.62% decline. These results suggest that some banking stocks not performed better for the day.

Buzz

The global oil benchmark Brent exhibited a steady position above the $80 per barrel mark. This price trajectory was primarily influenced by the release of US inflation data, which indicated an upcoming moderation in the interest rate hike cycle within the largest economy globally. The prospect of cooling interest rates has positively impacted the oil market, contributing to the sustained pricing levels of Brent crude.

The Brent crude futures showcased an upward movement of 22 cents, reaching $80.33 per barrel, while the US West Texas Intermediate (WTI) crude futures demonstrated a gain of 11 cents, trading at $75.86. These price movements indicate a positive trend in the oil market, with both Brent and WTI crude prices experiencing incremental increases.

The Indian rupee concluded Thursday’s trading session on a positive note, marking the fourth consecutive session of gains. This upward movement was primarily attributed to the overall weakness observed in the US dollar. However, it’s important to note that the appreciation of the rupee was somewhat limited due to the demand for the US dollar from importers. These factors influenced the exchange rate dynamics, with the Indian rupee experiencing fluctuations against the US dollar.

The Indian rupee concluded the trading session at 82.0725 against the US dollar, exhibiting a slight decline from the previous day’s closing rate of 82.2475. However, it is worth noting that the rupee has displayed an overall appreciation of 0.8% throughout the week.

Buzzing

The share price of Tata Consultancy Services Ltd. experienced a notable increase of 2.60% compared to its previous closing value of Rs 3,259.90. Currently, the stock is trading at Rs 3,344.50. Over the span of three years, the stock has delivered a commendable return of 46.84%, while the Nifty 100 index has provided a return of 77.05%. Furthermore, a 0-day moving crossover signal emerged yesterday, indicating a potential market shift. Historical data reveals an average price decline of -2.19% within seven days following this signal over the past five years. Additionally, the company has observed a quarter-on-quarter (QoQ) decline in revenue by 0.73%, which is the lowest recorded in the last three years. These insights shed light on the recent performance of Tata Consultancy Services Ltd. and provide valuable information for investors analyzing the stock’s potential.

The share price of Power Grid Corporation of India Ltd. experienced a significant decrease of -3.35% compared to its previous closing value of Rs 252.05. Currently, the stock is trading at Rs 243.60. Over the course of three years, the stock has delivered an impressive return of 98.74%, outperforming the Nifty 100 index, which provided a return of 77.05%. Moreover, a 10-day moving crossover signal emerged yesterday, indicating a potential market shift. Analysis of historical data reveals an average price decline of -1.92% within seven days following this signal over the past five years. Notably, the company witnessed a quarter-on-quarter (QoQ) revenue growth of 8.91%, marking the highest recorded in the last three years. Additionally, over the last 15 years, only 1.12% of trading sessions saw intraday declines higher than 5%. These insights provide valuable information for investors analyzing the recent performance of Power Grid Corporation of India Ltd. and its potential for investment.

Advance Decline Ratio

Today, the advance-decline ratio was 1.00, and the market breadth was positive. The volatility index India Vix increased by 0.02 percent to settle at 10.94 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 5325
Decliners – 5306
52Wk High –  166
52Wk Low – 21
High Band Hitters – 58
Low Band Hitters – 40
200d SMA – 18025
50d SMA – 18686
20d SMA – 19079

Top Gainers and Losers Stocks

The top gainers were TCS (+2.60%), Hindalco (+2.59%), Infosys (+2.39%), Tech Mahindra (+1.90%), and Bajaj Finserv (+1.62%).

The top losers were Power Grid (-3.35%), Coal India (-1.86%), UPL (-1.73%), Maruti (-1.68%), and BPCL (-1.35%).

Top Gainers and Losers Sector

The top gainers sectors were IT (+1.75%), Realty (+1.02%), Financial Services (+0.49%), and Metal (+0.26%).

The top losers sectors were Media (-1.88%), Oil & Gas (-1.17%), Consumer Durables (-0.87%), Auto (-0.61%), and FMCG (-0.47%).

The Nifty Midcap 50 was down by 0.89 percent, while the Nifty Small Cap 50 was down by 1.36 percent on the day.

The Nifty Midcap 50 index currently closed at 10,193.95, while the Nifty Small Cap 50 index currently closed at 5,063.25.

SECTORS – NOTABLE ACTION
IT +1.75%
REALTY +1.02%
FINANCIAL SERVICES +0.49%
MEDIA -1.88%
OIL & GAS -1.17%
CONSUMER DURABLES -0.87%

Stocks Ban List

(SEBI) F&O ban list  (HINDCOPPER open at +121.65 and close at -117.25), (IBULHSGFIN open at -123.90 and close at -119.90), (MANAPPURAM open at -129.95 and close at -123.65), (PNB open at +61.80 and close at -59.10), (ZEEL open at -201.25 and close at -198.90), and (INDIACEM open at +208.40 and close at -205.80) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned HINDCOPPER, IBULHSGFIN, MANAPPURAM, PNB, ZEEL, and INDIACEM from trading in the futures and options (F&O) segment of 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.

L&TFH, BALRAMCHIN, RBLBANK, LICHSGFIN, and GNFC are stock that are potentially facing the possibility of being included in the ban list.

INDIACEM has the possibilities of exit from ban list.

Daily Pivots

As per the above pivots data, 19360 to 19540 is the Nifty 50 trading range.

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