Friday’s Market Rebound Global Trends Boost Equity Benchmark Indices

At the close, the Nifty 50 was at 19,638.30 up by 0.59%

On September 29, the Indian stock market displayed a resilient performance, marked by a mixture of trends. The NSE Nifty 50 commenced the day on a positive note, registering a 0.59 percent increase and ultimately closing in positive territory, with the Nifty surpassing the 19,600 level.

The day’s upward momentum was primarily fueled by substantial gains in the metals and pharmaceutical sectors, instilling confidence among investors. However, the Information Technology sector experienced setbacks, tempering the market’s overall advances.

A significant boost to market sentiment came from the release of favorable GDP data from Britain, which bolstered global market confidence. This international development had a ripple effect on Indian markets, contributing to their resurgence.

Nevertheless, it’s crucial to acknowledge that the market faces significant resistance at higher levels due to subdued liquidity and a lack of catalysts to counter prevailing bearish sentiment. Therefore, investors are urged to exercise caution and factor in potential market challenges when devising their strategies.

Looking forward, there is a potential silver lining on the horizon with the return of a favorable monsoon in September. This could mitigate upside risks related to domestic inflation, affording the Reserve Bank of India (RBI) the flexibility to maintain a pause in the upcoming policy meeting. Investors are advised to closely monitor both global and domestic factors that could exert influence on the market, staying well-informed to make prudent investment decisions.

Bank Nifty: Up by 0.64%

The Indian stock market demonstrated a robust performance during the trading session, with both the Bank Nifty and the BSE Sensex commencing in positive territory and concluding on a positive note.

The Bank Nifty exhibited a noteworthy upward trajectory, initiating the day with gains and ultimately closing with an impressive 0.64 percent increase, reaching a level of 44,584.55. This uptick underscores the robustness of the banking sector, a pivotal driver of the Indian economy.

Similarly, the BSE Sensex, representing a broader cross-section of the market, recorded a healthy gain of 0.49 percent. The trading day concluded with the Sensex achieving an impressive high of 65,828.41. This buoyant performance reflects the enduring strength of the Indian stock market, which continues to capture the attention of investors.

In the sectorial landscape, the pharmaceutical sector experienced a significant surge, posting an impressive gain of 2.66 percent. Leading the charge, Glenmark Pharmaceuticals Ltd. surged by 10.02 percent, closely followed by Aurobindo Pharma Ltd., which achieved a noteworthy gain of 4.97 percent.

Conversely, the IT sector encountered some challenges, registering a marginal loss of 0.30 percent. Ltimindtree Ltd. bore the brunt with a loss of -1.14 percent, while L&T Technology Services Ltd. dipped by -0.90 percent.

Within the FII/FPI segment, there was a notable disparity between the buy and sell values. The FII/FPI buy value amounted to Rs. 10,058.35 crores, indicating a substantial influx of foreign capital into the market. However, the sale value was notably higher at Rs. 11,744.05 crores, resulting in a net outflow of Rs. 1,685.70 crores.

Conversely, in the DII category, the buy value stood at Rs. 8,788.50 crores, showcasing active participation from domestic institutions in the market. The sale value of Rs. 6,037.01 crores was lower, resulting in a positive net value of Rs. 2,751.49 crores.

Bank Nifty

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

The gainers included Bank of Baroda with a 1.59% increase, State Bank of India with a 1.42% increase, IndusInd Bank with a 1.17% increase, ICICI Bank with a 1.10% increase, and IDFC First Bank with a 1.00% increase. On the other hand, the biggest losers in the sector included AU Bank with a 0.77% decline. These results suggest that some banking stocks performed better for the day.

Buzz

The Indian rupee showcased a mixed performance in recent trading sessions, reflecting the intricate interplay of global and domestic factors. On Friday, it appreciated by 14 paise, closing at 83.05 (pro) against the US dollar. This upward movement was fueled by a strong showing in domestic equities and a notable correction in the US dollar’s value against other major currencies worldwide.

Nevertheless, the rupee faced headwinds from foreign equity investors, who exerted selling pressure, and the escalating prices of crude oil in international markets, which added to the currency’s volatility.

The trading day commenced with the rupee opening at 83.13 against the US dollar, fluctuating within a range of 83.03 to 83.13, before ultimately settling at 83.05 (pro), marking a 14 paise gain compared to its previous close. The previous day, the rupee had closed slightly higher at 83.19, illustrating the currency’s ongoing fluctuations.

This recent strengthening of the Indian rupee can be attributed to a weaker US dollar index and a decline in global crude oil prices. Furthermore, the positive sentiment in domestic markets contributed to the rupee’s resilience. However, it’s essential to note that foreign institutional investor (FII) outflows have acted as a limiting factor, preventing more substantial gains.

Buzzing

NTPC Ltd. (NSE: NTPC) has shown a promising uptick, with its share price rising by 3.78% to reach Rs 246.00. Notably, a 14-day moving average crossover emerged recently. However, historical data reveals an average price decline of -2.29% within 7 days following this signal over the past 5 years. On the positive side, the company’s annual revenue growth stands at an impressive 31.84%, outperforming its 3-year CAGR of 16.39%. Additionally, it’s noteworthy that only 1.01% of trading sessions in the last 18 years witnessed intraday declines higher than 5%, underlining its stability.

Conversely, LTIMindtree Ltd. (NSE: LTIMINDTREE) faced a slight setback, with its share price dropping by -1.14% to Rs 5,205.00. A 20-day moving average crossover emerged recently, with a historical average price decline of -2.61% within 7 days after this signal over the past 5 years. However, LTIMindtree Ltd. boasts an impressive annual revenue growth of 109.1%, outperforming its 3-year CAGR of 43.86%. It’s also worth noting that only 0.79% of trading sessions in the last 7 years witnessed intraday declines higher than 5%, indicating relative stability.

Advance Decline Ratio

Today, the advance-decline ratio was 2.02, and the market breadth was positive. The volatility index India Vix decreased by 10.68 percent to settle at 11.45 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1584
Decliners – 783
52Wk High –  79
52Wk Low – 14
High Band Hitters – 65
Low Band Hitters – 21
200d SMA – 18498
50d SMA – 19626
20d SMA – 19786

Top Gainers and Losers Stocks

The top gainers were Hindalco (+5.60%), NTPC (+3.78%), Dr. Reddy (+2.97%), Hero MotoCorp (+2.85%), and Tata Motors  (+2.75%).

The top losers were Adani Enterprises (-2.39%), LTIM (-1.14%), Infosys (-0.68%), HCL Technologies (-0.39%), and Nestle India (-0.38%).

Top Gainers and Losers Sector

The top gainers sector were Pharma (+2.66%), Media (+1.96%), Metal (+1.90%), Oil & Gas (+1.18%), Realty (+0.92%).

The top losers were IT (-0.30%).

SECTORS – NOTABLE ACTION
PHARMA +2.66%
MEDIA +1.96%
METAL +1.90%
IT -0.30%

Stocks Ban List

Today, SEBI’s F&O segment has not placed any stocks on the ban list.

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 stock has the possibilities of enterance in the ban list.

Daily Pivots

As per the above pivots data, 19540 to 19740 is the Nifty 50 trading range.

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